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Redistribution, graduated tax system is an American tenet too, not just a socialist idea

(Last updated: 11/03/08 7:53pm)

In Ian Brown’s editorial cartoon and Judy Whipple’s letter to the editor (Redistribution not a good policy for class grades, U.S. economy, SN 10/28), they compare Democratic presidential candidate Barack Obama’s tax policy to a classroom where all students with 4.0s would all receive 3.0s, so students with 1.0s can get 2.0s.

This analogy is insulting to students’ intelligence on several levels.

First of all, at the beginning of every class, all students begin with the same grade and same opportunity to get a good grade. Whipple’s analogy assumes that this is also the case for the real world. It is not. Not only does it assume that everyone is born with equal opportunities, it also assumes that all poor people are lazy (like the failing student). Neither of these assumptions is true.

Although Whipple might favor taxing the poor as much as the wealthy, Americans have traditionally embraced a graduated tax system, where those who make more money are taxed a higher marginal rate than those that do not.

Obama’s tax plan is nothing radical. His plan increases the tax on every dollar earned above $250,000 by a mere 4 percent. Obama will cut taxes for 95 percent of Americans struggling in this recession, and the least fortunate will receive a tax credit.

Tax credits are a key component of Republican presidential candidate John McCain’s health care plan, yet when Obama offers tax credits, McCain’s desperate campaign labels Obama a socialist.

A graduated tax system that favors working-class Americans isn’t socialist — it is a traditional and enduring tenet of American government.

Geoff Levin

international relations sophomore

Originally Published: 11/03/08 7:38pm




Commentary:


Lysander Spooner

11/04/08 12:24am

Nobody starts a class equal either, the analogy, though certainly not perfect, is not insulting. Some students are smarter, or better settled in their lives, or had a better preparation in previous courses. The analogy reflects reality in this respect. If a student does poorly in a class, it doesn’t make sense to for the teacher to simple reward them with a free grade increase. In the real world, nobody says that all poor people are lazy, but why start rewarding failure?

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Joe

11/04/08 9:34am

Subsidising poverty? You claim providing tax cuts to working class families will be incentive to be lazy, but why is there currently a 6% employment rate? Are those 9.5 million people just lazy? Clearly, they are just waiting for Obama to get elected and receive their handout.

Sam

11/04/08 10:27am

To consider workers who are at or below poverty level failures…there’s got to be a reality check. The society is not designed to reward hard work with higher pay.

Though it’s more closely to 80% (not 95%) of Americans, Obama’s plan includes only those who are paying payroll tax, the ones who are working. To imply those who are working but are at or below poverty level are failure, that’s a stretch.

MSU Alumni

11/04/08 11:32am

Just wait until you are out in the real world utilizing the degree you worked so hard to get. Then talk to me about who is lazy and who is not. I have seen many people who have worked under me scam the system so that they can get money for doing nothing. It’s very disheartening to know that my parents worked hard to give me an education and at the end of the day I could make more money working part time and collecting from the government. Sad but very true.

MSU Alum 06

11/04/08 11:49am

Wait, you can make more money working part-time and collecting from the government than you can utilizing your college degree? You must’ve picked a useless major. Sure, there are people that scam the system, but there are also people out there working several jobs not looking for a handout, who haven’t seen the minimum wage increased in over a decade. Not everyone wants to scam the system, we’re Americans and we value hard work.

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Working Hard Or Hardly Working

11/04/08 12:14pm

Alum 06, even seeing a small handful of people work the system is disheartening. I doubt Alumni was implying a large number of people do it but it happens to a larger extent than you may think. As you yourself mention greed is rampant and you don’t have to be on Wall Street to be greedy. Spend a few more years out there and maybe you’ll see what I’m getting at.

Jason

11/04/08 12:23pm

Working- Who exactly do you believe to be greedy? The welfare recipient who is milking the system? What system are you talking about? At some point, you have to work at least part time in order to be eligible for welfare benefits, despite what you may read on the board here that implies otherwise. If you don’t have a job, you aren’t going to get money from Obama’s proposed tax cuts and you aren’t going to get welfare.

MSU Alumni

11/04/08 12:39pm

I’m sorry but if you work as a what I like to call a “Career waiter” you can make crazy money. I’m the 8 years I have worked in this industry I have seen hundreds of people scam the system. I have seen people take home hundreds of dollars in cash tips a night. This is money that never gets factored into their annual wage so all government assistance is based off the fact that they are only making x amount of dollars when in reality they are making way more then that.

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Jason

11/04/08 2:08pm

How do you know these people aren’t declaring the tips on their income tax returns or at the very least a portion of the tips?

I in fact did get a degree that allows me to sit in an office most days, but I do work with people who do not have a college degree. I’m not sure how that is relevant.
Maybe I’m wrong, but your anecdotal evidence is hardly proof that I am.

stachow8@hotmail.com

11/04/08 2:34pm

How do I know they aren’t declaring their tips? Because I’m not a idealistic fool like you are. The forms are posted and easily accesible to all tipped employees yet I’ve never seen anyone take one. Plus as their manager I have to sign off on their unemployment claims so I see what annual income they are claiming. I also know what’s going on in my department and see the tips that they are given by guests.

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Joe

11/04/08 2:46pm

Couldn’t you report them if you were so concerned?

And way to bash idealism… why dream big and reach for the stars? That’s unAmerican! All this fairy tale nonsense is driving me crazy. What if someone told you men could fly to the moon?! Would you be dumb enough to believe them?!

Tim

11/04/08 2:49pm

I certainly am not acting holier than thou. You are the one calling me stupid and a fool and assuming a variety of things about me. You certainly have not shown that people don’t work hard as it safe to assume that your staff must work hard.
If you believe that you can make more money being lazy and cheating hte system to get undeserved food stamps or whatever additional governmental benefits you believe your employees are so undeservedly getting, I suggest you take your own advice. Be sure to write in a letter to the editor.

I also never said your evidence doesn’t mean anything, simply that

Tim

11/04/08 3:52pm

I also wanted to point out that failing to declare tips would come back to bite unemployed servers in the ass, as they would receive less in unemployment. Incidentally, the tax payers would then save money.

Working Hard Or Hardly Working

11/04/08 6:09pm

At some point, you have to work at least part time in order to be eligible for welfare benefits, despite what you may read on the board here that implies otherwise.

Correct Jason, but what motivates them to move beyond that? I’m all for helping someone down on their luck, but if They’re not trying to improve their station or are just simply applying for welfare because they can but don’t really need it.

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Jason

11/04/08 8:03pm

Work-
For whatever it’s worth, I have worked in several restaurant and I’ve been in the real world for several years. You know nothing about me, but assume my idealism is based on naivete.
The bottom line is this discussion is nothing but speculation and an opinion based on personal experience. How many people even depend on tips for a living? Waiters only make up a small portion of those who even work in a restaurant.

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Stroud

11/05/08 9:06am

A graduated tax system is fair and necessary for the stability of our economy. It is necessary to tax less the poorer peoples in order that they spend more money on goods proportional to their wage. Spending money on goods is the catalyst for job production. With the more wealthy, the marginal propensity to spend money on goods proportional to income drops. Income earned and not spent tightens the economic gears.

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Performers in the traveling professional group Nrityagram perform their tradItional Indian dances.

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