How Democrats Scam Poor People
Intuitively, we would think that rich people would want lower taxes, because they pay higher percentages than poor people of their salary income in taxes. Even if they were in the same tax bracket with the poor, 10% on $1,000,000 is a hell of a lot more than 10% on $10,000. Thus we would think, prima facie, that rich people would want lower taxes, so they would not have to pay all that money to the government.
This is what Democrats yell at Republicans... "George Bush just wants all those tax cuts to help out himself and all his rich buddies! Democrats fight for the working poor people who don't have any social services!"
So the puzzling question is, why would the ultra-Rich (e.g. John Kerry and his billionaire buddies like George Soros) support democratic policies and preach power to the working people along with tax increases to help fund more social welfare projects for the "poor" and health-care for the "uninsured," if they knew that, due to the higher taxes, they (the rich guys) would have to pay exorbitantly for it through increased taxes?
This question puzzled me for months. I finally figured it out after reading a related article in the Wall Street Journal.
The fact is the following: The tax increases Democrats (and many rich people) support, will help them far more than it will hurt them. But how is this possible?
Here's the scam, and let me tell you, the scam is ingenious.
The ultra-rich are normally not taxed in the same way that the poor are! Most of their income is non-salary income. It comes from securities that are often non-taxable (such as municipal bonds), or from securities whose income is taxed at a rate below the regular salary income tax rate schedules that lower or middle class Americans use (such as from capital gains). When Democrats talk about increasing taxes, the ultra rich stand to pay less (by percentage) for the social services everyone receives than the poor would.
However, the poor are only all too ready to leap on board and support the plan because they feel they will be getting their fair share back through increased social welfare spending, new government programs to help poor people, and free or cheaper health-care insurance - maybe along with a bit more funding for education programs that help the poor go to school.
Now if you are poor, these things sound fantastic. You get a bigger welfare check, cheaper health-care, and a shot at a better education. It looks good to you, maybe so good that you don't stop to realize that you are actually getting screwed.
How so? The poor must realize that when they pay their higher taxes, they are paying not only for their own social services, but now also for social services for the rich. The scam is that they (the poor) are paying proportionately more in percentage terms than the rich are. The genius of the scam is that as the rich make themselves richer, they make it appear that the poor people are actually the ones who are benefitting from their policies.
The rich (like Kerry and Soros) pay a little bit more in taxes, but they are now able to enjoy unfettered the benefits that taxing the working poor have provided to them: better roads, more money to decrease costs of education (the same cost for rich and poor, mind you), and socialized medicine, etc.
The scam, we see, is all about keeping the rich rich (or richer!) and the poor poor (or poorer). The total individual wealth in the country decreases, as taxes increase. Yet in relative terms, the rich increase their "lead" over the poor people because they receive only a small amount of their income as the "salary" or "hourly" type of income that most poor Americans receive.
Democrats often make themselves out to be God's answer to the cries of the impoverished people of our country. In fact they are wolves in sheep's clothing, loving the irony that the very poor masses which adore them for "wanting to help the poor" will actually, in relative terms of wealth, be made worse off by their policies.
