Tax cuts for the Middle Class, so says Obama. Tax cuts for the Middle Class is a Republican cry. What is the magic about the Middle Class? The British had the Middle Class as the only group deserving of voting. The Middle Class (the one with property) is the only one invested with a stake in the system.
The Poor are not important The Rich are not important.
In less advanced societies because poverty is the prevailing mode, everyone is poor, the poor make up the bulk of the population. So if you adopt the case of the poor you have some assurance that you will have the hearts of the majority.
In an advanced economy like the USA, you have the rich, the middle, and the poor. The rich is what they may call the top one percent. The poor may be the bottom one third (assuming we have one out of three qualifying as poor) so, what is left is the middle, the good old Middle Class. The rich and the poor make up say thirty five percent. The remaining sixty five per cent is the Middle Class.
Does Obama or Romney care about the Middle Class? The answer is if they do, the Middle class does not necessarily occupy a cozy place in their heart. It is smart to give the tax breaks to the middle class. They have the votes. They will make you or break you. All the tax breaks, all the goodies should go to the Middle Class.
Jesus vs. Adam Smith.
Are the poor more important than the Middle Class? My answer is yes. If you want to give a tax break it should be to the poor. If you want to give a child credit it should go to the poor. If you want to give an economic subsidy, it should be to the poor. It should be to the poor until the poor are no longer poor.
Is this the Church’s marching cry or is it The Wealth of Nations as it was called before by economists such as Adam Smith. To be sure, the economists (Adam Smith or otherwise) never necessarily cared about the poor. We argue the importance of the poor on two counts. The first is economics.
A nation which has one third of its population as poor is a nation with one third weaker purchasing power. It is a nation with its one third less productive because poverty means lower education. It is a nation with higher numbers in prison because poverty leads to crime. It is a nation with costly social programs. And finally it is a nation rife with strife and morally lacking. Poverty is an indictment to any society.
A ditch dug, a ditch covered.
A rich nation like the USA must guarantee the poor a dignified living. There is only one condition on the poor. They must work. All the poor must fulfill their obligation of a decent sweat each day. The only exception is the disabled and the elderly. No welfare, but work. Even if we have to have the poor dig a ditch in the morning and fill it in at sunset day in and day out. Dignity is in work and we guarantee food, health and education. How we do that is basically calculating the gross national product. The revenue estimate and the first allocation of revenue goes to the poor and then to defense. Defense may have a priority if there is an imminent danger.
Dean Alexander is the founder and CEO of NFA Tax Help and has been helping clients with tax issues for over 35 years. Email email@example.com.