Obama's FDR Mistake With Taxes

By Douglas V. Gibbs

In 1933, in order to generate more revenue, Franklin Delano Roosevelt initiated a policy of withholding from "all" wages and salaries, not just the highest incomes enjoyed by the rich as the "soak the rich" policy of the income tax had been prior. Rather than the rich paying the tax at the end of the year, the tax was collected at the payroll window before it was even due to be paid by the taxpayer. This style of collection shifted the tax from its original design as a tax on the wealthy to a tax on the masses, mostly on the middle class, though it also greatly increased the taxes on the rich as well. The result of this increase in taxation on the achievers, and the masses alike, was devastating. The higher taxes, and the "soak the rich" strategy, coupled with the growing regimen of federal spending, worsened the Great Depression, and lengthened it for another seven years.

Obama has decided to use the same strategy.

“There is surging sentiment out there among voters that the economy is weighted towards the wealthy,” said a senior White House official. “Public opinion has changed dramatically.”

The democrats claim the wealthiest do not pay their fair share, yet the after-tax income of the wealthiest one per cent of U.S. households increased by 275 per cent over the past three decades, compared to an average of 62 per cent for all Americans, the independent Congressional Budget Office reported this week. For the poorest 20 per cent, the growth was only 18 per cent.

Taking cues from the Occupy Wall Street protesters, and Roosevelt's war against the achievers of society, the Obama administration has claimed that he is fighting for the common man against the wealthy enemy.

I have heard that battle cry before. . . from the anti-capitalist ravings of the Soviet Union.

-- Political Pistachio Conservative News and Commentary

Obama takes risky stance against rich - Financial Times