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Charles Davenport Jr.: Where’s the outrage?

Sunday, April 19, 2009
(Updated 3:00 am)

Tea party, anyone?

Elaine Mejia, director of the N.C. Budget and Tax Center, recently applauded Sen. Kay Hagan for voting against cuts in the estate tax, which is also known as the “death tax” (“Hagan made right choice on the estate tax,” April 9). The legislation Hagan opposed, Mejia writes, “gives tens of billions of dollars to the richest people in this country over 10 years.” Those funds, the author insists, “would be better used to reform health care or reduce the deficit.” Besides, she adds, “the estate tax only affects estates starting at $7 million per couple.”

Mejia’s approach to taxation exemplifies a dangerous but quite common mind set that James Madison foresaw over two centuries ago. In The Federalist  No. 10, the prophetic “Little Jimmy” wrote as follows: “The apportionment of taxes on the various descriptions of property is an act which seems to require the most exact impartiality; yet there is, perhaps, no legislative act in which greater opportunity and temptation are given to a predominant party to trample on the rules of justice. Every shilling with which they overburden the inferior number is a shilling saved to their own pockets.”

The spirit of Madison lives on in the modern champion of limited government and lower taxes. We would like to remind progressives that the federal government doesn’t “give” billions of dollars to anyone, because the government’s source of funds is the American taxpayer — and the much-maligned “rich” pay a disproportionate share.

According to the Congressional Budget Office, the top 1 percent of income earners pay an astonishing 39 percent of all federal income taxes. They and their affluent neighbors, the top 5 percent of income earners, pay 61 percent of the total. In light of these statistics, “tax cuts for the rich” are long overdue.

I am not one of them, by the way. My income is less than one-fifth of the baseline that typically qualifies one as “rich” ($250,000), yet federal and state government confiscates more than 20 percent of my paycheck.

Furthermore, the fact that the death tax applies only to estates worth at least $7 million does not diminish its perniciousness. Suppose that “only” 10 people were mugged in Greensboro Friday night, and all 10 victims happened to be wealthy. On Saturday night, again, “only” 10 people were mugged, but all of the victims were “middle-class.” Is it rational to conclude that Friday’s crimes were less offensive than those that took place Saturday?

Although left-wing activists disapprove of billions of dollars being “given” back to the taxpayers (those to whom the money belongs), doing so is the ideal course. But if those funds must be spent elsewhere, they should at least be applied to legitimate federal purposes, in realms of authority explicitly granted by the Constitution.

Cheerleaders for the bloated Nanny State may be surprised to learn that Article I, Section 8 of the Constitution does not authorize the federal government to engage in health care reform. National defense, on the other hand, is an enumerated power, and therefore, a legitimate expense.

 W.E.H. Lecky, an acclaimed 19th century historian, wrote that the progressive tax, such as the current American system, “is a direct penalty imposed on saving and industry, a direct premium offered to idleness and extravagance.”

“Dishonest politicians,” he warned, “will have no difficulty in drawing impressive contrasts between the luxury of the rich and the necessities of the poor, and in persuading ignorant men that there can be no harm in throwing great burdens of exceptional taxation on a few men, who will still remain immeasurably richer than themselves.”

Envy has indeed become a weapon utilized by Nanny State politicians and activists to mobilize the ignorant against “the rich” who, presumably, do not pay their fair share. Where is the outrage over the fact that the federal government ignores the 10th Amendment restrictions on its power, and squanders billions of dollars undertaking unconstitutional initiatives; that the industrious and ambitious provide for the slothful and indolent; that the self-reliant individual of American tradition has become a revenue-producing drone in service to the almighty State?

Where is the outrage over the fact that the federal government, in order to “stimulate the economy,” will spend additional trillions of dollars to be repaid by our children and grandchildren? (Never mind that FDR’s New Deal — the program the Obama Administration emulates — did not achieve the desired results.)

The outrage finally became apparent on Tax Day, as citizens in Greensboro and nationwide participated in Tea Parties to protest these and other excesses of the Nanny State. The limited-government philosophy, wounded in November, may yet be revived.

Charles Davenport Jr. (daisha99@msn.com) is a freelance columnist who appears on alternate Sundays in the News & Record.
 

Comments

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Panacea

April 19, 2009 - 1:44 pm EDT

That one percent that pays a disproportionate amount of taxes also owns a disproportionate amount of all the wealth in this country. Many of them are the same people who ran this country into the ground, gave themselves golden parachutes, and then conned the US taxpayer into bailing out their failing companies.

The ultra rich get no sympathy from me. I want to see the estate tax stay.

Limited government was a nice idea in 1792, but we have to deal with the facts of a modern reality. Limited government is as dead an idea as the idea that a black man is 3/5th of a person.

We live in a complicated, global world. There is no turning back the clock. The only direction to move is forward. We need to accept the fact that big business cannot be the supplier of our health care and retirement anymore. Government must step in and play a role.

I'm not talking socialism. I'm not saying doctors should become employees of the state like in Britain and Canada (they should NOT). I'm saying that Government must take the lead to create a new system to cover all Americans, such as a private market insurance system like Switzerland and the Netherlands have.

Taxes are going up folks. I don't care what the Republicans say about holding the line on taxes--the bailout has to be paid for. Bush's War has to be paid for. Then we have to solve problems like unfunded promises in Social Security and Medicare.

We can't afford limited government anymore. The Republican conservative ideas that came in with Ronald Regan don't fit the times.

If the Republicans really want to find a new message that will appeal to voters, then they need to look back at the Progressive Movement and Theodore Roosevelt.

Doug Johnson

April 20, 2009 - 6:38 am EDT

What you want read by liberals, like Kay Hagan is that what she wants is a death sentence on the America people.  In Canada colon cancer has a 42% death rate, in the USA a 31% death rate.
However I give Hagan credit she installed free health care for all the illegals children.
Sorry about that hard working Americans, you got left out.
Keep up the good work Charles, its good to know someone at the leftist NR, has a clue.

Bilbo

April 20, 2009 - 7:56 am EDT

That death sentence shouldn't be too hard considering that Bush and the other neo-cons just about killed off the country during their term....don't see you marking that anywhere in your factless rant....

Doug Johnson

April 20, 2009 - 6:40 am EDT

By the way this 7 million dollar mark is just for wife and husband.
If you want to leave your children a few dollars, different rules, Kay wants it, got to buy a few illegals votes with it.

Bilbo

April 20, 2009 - 7:53 am EDT

Abd Doug your proof and documentation of buying illegal votes is???????

acnicholson

April 20, 2009 - 11:09 am EDT

Panacea's proposal could more appropriately be called utopia. Unleashing government from limits does not solve problems, but it can often create quite a few (see Robespiere and the Terror, Stalin, Hitler, Mao, Pol Pot...)

Limited government might not be popular in the Obama administration, but that doesn't mean it isn't right, or that it won't come back. Americans often flirt with cute liberal theories, until they decide that hard-work, personal responsibility, and the freedom to pursue one's dreams without regard to Washington bureacrats is more satisfying than anything the welfare-entitlement state can provide.

The Death Tax is a particularly good example of why well-intentioned redistributionism is bad for society. As noted by economist Douglas Holtz-Eakin points out, the Death Tax destroys 1.5 million jobs in America by confiscating capital from the men and women who create jobs and economic growth. The Death Tax punishes those who invest in a business and try to keep it in the family (and local to the community).

I'm particularly impressed with Panacea's poor understanding of history. The 3/5 compromise did not make black men "3/5 of a man", but it kept their slave owners from being able to steal their slaves' entire vote and use it to protect the institution. The 3/5 compromise was an example of good policy motivated by sound principles.

Fortunately, slavery is now a dead institution. Intellectually, so is socialism and its attendant policies of redistribution of wealth.

For more information on the Death Tax fight, please visit: www.nodeathtax.org

Adam Nicholson
Director of Research
American Family Business Institute

left-wing conspiracy theorist

April 21, 2009 - 7:57 pm EDT

I will save the Constitutionality of health care reform and Davenport's other concerns of the 'Nanny State' for another day, but I will say this: 'promote the general welfare' is in the preamble to the Constitution. Health care reform is crucial to the overall health of our nation's economy, because like education, health care is by nature becoming more expensive relative to the cost of other goods in our economy.

So, the top 1 percent pays 39 percent of all federal income taxes. This is true. However Davenport and others who throw this out are being intellectually dishonest when they don't discuss the following salient points: the reason why the richest one percent pay 39 percent of all federal income taxes is because their incomes have more than tripled since 1979. Who would Davenport have pay more taxes, someone whose real income has risen by 1.2 million dollars, or someone whose income has risen by one thousand dollars, all the way up to $17,200 such as the bottom quintile? The fact of the matter is, the effective tax rate for the richest one percent has actually decreased nearly 6% since 1979. Tax cut for the rich long overdue? Mr. Davenport, it's already happened, but I'm guessing you know that, given your familiarity with CBO data.

In my work, I serve people in the bottom 20% of the economic ladder every day, and they are anything but 'slothful' or 'indolent'. May Davenport and others who disagree with me never have to choose between taking their child to the doctor for needed care or going to work to get a full paycheck, so gas for their twenty year old car can be purchased and the light bill can get paid in their rented single-wide, or the scores of other harsh decisions poor families face on a daily basis.

What I am concerned about is you don't see the top 5% at these 'Tea Parties'; it is those who stand to benefit from Obama's proposed tax policy. So, why do these 'Tea Party' participants continue to support policies against their own economic best interests? I think I know, but that, too, I will save for another day.

Get A Clue

April 28, 2009 - 8:16 am EDT

I, too, am outraged.
I am outraged that a respectable newspaper allows such trash to be printed. "Balanced and fair" means mature and based in fact. If I wanted to read cherry-picked misquotes and Republican talking points regurgitated, I'd just flip on Hannity or Limbaugh and cut out the middleman.
For example: "yet federal and state government confiscates more than 20 percent of my paycheck." Confiscates? To turn a phrase, if you don't believe you share responsibility as a citizen for road construction and repair, emergency services, cleaner natural resources, your eventual turn at Social Security and a host of other tangible benefits to living in this great nation, then get out.
This is a Republic, a representative democracy, and you get to vote. That doesn't mean you're guaranteed to get things 100% your way. And if you can't make it on a quarter of a million dollars a year minus 20% taxes, then cry me a river.
Freedom isn't free. Turn off your hate-spewing AM radio and open up your mind.

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