) Obama's "Tax Cut" is Income Redistribution (RCP)

) Obama's "Tax Cut" is Income Redistribution (RCP)

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Quote:
he statistics speak for themselves. Only 62 percent of Americans pay federal income tax, meaning that 38 percent get a 100 percent refund of any taxes withheld. So Mr. Obama's 95 percent that will receive money from the government includes roughly 33 percent of Americans who pay no income tax. One-third of Americans pay no income taxes yet would receive a government check of perhaps $1,000 or more.

That is pure income redistribution. Some pundits argue that this is Keynesian demand-side economics. It is not. Having the government take money from business entities or affluent individuals and giving it to those who pay no federal income taxes is not Keynesian. It's Marxist.

American voters don't buy Team Obama's arguments. A recent Gallup poll shows that 53 percent of Americans believe that Mr. Obama would raise their taxes. A recent Zogby poll shows a majority of Americans understand that raising taxes will hurt the economy.

This point may gain some traction when trying to inform middle class voters. Most voters who pay taxes don't like the idea that other people don't. They will like it even less to learn they get "free money" on top of paying no taxes.

Obama Tax Plan
1) Gives money to those who already pay no taxes
2) Raising Taxes in a recession will hurt economic output (lost jobs, lower wages)
3) Is unrealistic w/ trillion dollar deficits. Likely more people will have their taxes raised to pay for the bottom who pays no taxes and now get "free money".

The point is simple. It is not "fair" (IMHO). It is essentially welfare via the IRS. Virtually any voter can be informed on the topic in <1 minute. (aka good talking point).

Blue Collar middle income workers will decide the election. To many this idea makes no sense and smacks of socialism.