Obama Should Radically Cut Taxes Immediately. Here’s Why.

Posted by Peter on Oct 28, 2011 in Featured, Politics | 0 comments

Recent struggles between the Democrats and Republicans have shown one simple fact: Democrats cave well before Republicans. When push comes to shove, Democrats ultimately give in. To regain leverage, they need to adopt a seemingly suicidal stance on taxes.

But only taxes for the middle class and poor.

Here is what Obama needs to do right now. He needs to make a massive – i am talking radical here – tax cut to the middle class and the poor. Wipe out income taxes altogether for anyone in the bottom third of the income scale. They don’t pay taxes anyway so this isn’t a huge hit.

Next, cut income taxes on the middle class savagely. Let’s say a 50% reduction sounds reasonable.

Leave the rich alone or toss in some token cut – 5% or so. Only enough to say something like – we are cutting taxes across the board.

Now, here is why you do this.

First, a flat tax scheme is becoming very popular in the republican base. This is a horribly regressive plan that no one can afford economically nor socially. It will devastate the USA. You need to get the taxes that the poor pay far below these levels. This makes the argument that republicans are only raising taxes very convincing and actually true for the majority of people.

Second, you need some kind of aggressive strategy that republicans find difficult to oppose publicly. This is practically kryptonite to republicans. But it needs to be aggressive to work.

Third, to keep a progressive tax system is critical. If you lose that argument, it’s over. The only way to keep the rich paying more taxes than the poor is to radically cut taxes on the poor.

Lastly, getting more money to the middle class is a real economic starter. It might just work.

But the key here, and I can’t emphasize this enough, is to be radical. Bold. Aggressive. Play the republican game and cut taxes viciously. You can “starve the beast” but starve it in the right way.

If you don’t take this kind of approach, and a flat tax system ultimately takes hold, it will be devastating to everyone and will bankrupt whatever moral society you have left.