Categorized | Commentary/Editorial

Democrats Contradict Their Own ‘Tax-Cut’ Rhetoric by Invoking Reagan

This is funny. 

In response to the controversy over Mitt Romney’s words at a fundraiser, the liberals in the media seem to be forgetting their own meme about conservatives only wanting to grant tax cuts to the wealthy.  When discussing the 47% who don’t pay federal income taxes, liberals resurrect the fact that it was Ronald Reagan who signed the Earned Income Tax Credit (EITC) into law in 1986 for struggling taxpayers who earned less money. 

Over at Daily Kos, they lay out the facts with their own spin attached: 

After Romney defended the carried interest exemption that allows him to pay a lower tax rate than many middle-class families, the Gipper’s apparition emerged from 1985 to insist that "the millionaire ought to pay more in taxes than the bus driver." And now that Mitt Romney has slandered the 47 percent of Americans who pay no federal income taxes thanks to measures like the Earned Income Tax Credit (EITC), the ghost of Reagan is haunting him once again. 

The facts: Yes, Romney gets a lower rate on investment income (than middle class or wealthy Americans who pay tax on ordinary income)The spin is where they fail to explain that it’s because he’s already been taxed at the higher income rate when he originally earned it through working.  He then turns around and invests his previously taxed income at the ordinary rates and takes a risk by investing it.  If it makes money, he gets a break on the dividends received.  If he loses it, it’s gone forever.  There isn’t a government bailout waiting to reimburse him. 

The facts: Yes, Reagan signed the EITC into law.  The spin: he didn’t compare the “millionaire” to the “bus driver” in the same context the left does.  Reagan advocated for lower tax burdens on all Americans.  Assuming there was only one tax rate that both the millionaire and the bus driver were taxed at, simple math would tell that the millionaire would pay out more in income tax.  Reagan wasn’t talking in the context of rates.  Nor did he talk about the taxation of ordinary income versus capital gains tax rates.  He was talking about loopholes in the tax code that both sides of the aisle have benefited from. 

All along, Obama and the Democrats have falsely led the nation to believe that it is conservatives who have no interest in providing tax incentives for the middle class and the poor.  As they admit in these lame attempts of using Reagan against conservatives today, their usual rhetoric about conservatives protecting only the wealthy is proven utterly false. 

Reagan believed it was far more beneficial to give a distinct tax cut (incentive) to lower income workers.  It saved the government more money than it would if they all had stayed at home collecting welfare (which is growing under President Obama due to lack of opportunity).  Plus it gave the workers a sense of fulfillment; to go out into the world and communicate with others, share experiences, learn about other opportunities and give them a feeling of what it is to be proud of a hard day’s work.  This is what we call giving someone a fishing pole instead of a fish. 

But Reagan also believed in lowering tax rates on those who provided the capital to make these opportunities possible.  That’s why 20 million new jobs were created during his administration and why he increased revenues to the treasury.  

He proved that providing tax incentives across the board puts people back to work and gets them off of a plan like President Obama’s which promises a lifetime of government dependence and shared misery.  He was able to rely on the American spirit, our inherent freedom, and free markets to get it done.  He didn’t have to engage in class warfare either. 

Allow me to be the first to thank the Daily Kos and MSNBC for reminding us of this!

Tags: , ,

Comment Policy: The Editors reserve the right to delete any comments which in their sole discretion are deemed false or misleading, profane, pornographic, defamatory, harassment, name calling, libelous, threatening, or otherwise inappropriate. Additionally, the Editors reserve the right to ban any registered poster who, in their sole discretion, violates the terms of use. Do not post any information about yourself reasonably construed as private or confidential. Conservatives4Palin and its contributors are not liable if users allow others to contact them offsite.

  • John_Frank

    An excellent post, Steve. Thank you.

  • RedDaveR

      Romney/Ryan need to drive home the fact that capital gains and dividend taxes are DOUBLE TAXATION.  Most people that are not paying attention don’t understand this, and the MSM is certainly no help.

  • friskyness

    Romney and Ryan should be doing so much and be so much higher in the polls.  It’s so maddening to feel as frustrated with Romney as I was with McCain.  There campaigns are so bad, they have the same type of advisors and they NEVER learn from their mistakes!   They keep on repeating the same old tried and failed strategies, expecting different results!  The GOPe are truly insane!!!!!!!!!! and we are entrusting the country in their hands………that is insane too…….and re-electing Obama is insane too!!!!!!!!!!!  Our country, I am afraid will never regain itself with these two choices!!!!!!!  Sorry to say……………….

  • Patriot41

    I remember listening to Jack Kemp’s speeches on what is now referred to as Reaganism or in GHW Bush’s term, of trickle down economics.  It was Kemp’s belief, that if the tax rates were reduced on all Americans, they would reinvest their money into the economy and it would thrive.  Pres. Reagan bought that message and as a result, we left the Carter recession behind and there was a New Day in America.  I also remember Pres. Reagan saying that government was the problem and he was so very right!  Twenty-four years later, govt. is still the problem, the democrats never learn.

    • conservativemama

      Democrats know this but we have to stop assuming that Democrats think as we do.  They don’t care if their economic policies work or not.  All that matters is that they will be left in charge.  They will manage every aspect of our lives.  Their end game is power amassed in their hands.  It’s not economic vibrancy, or logic even. It’s power.

      We have to understand that and stop assuming they think as we do.  They don’t.

  • VoodooEcon

    I stopped reading after the sentence "The spin is where they fail to explain that it’s because he’s already been taxed at the higher income rate when he originally earned it through working." Mitt Romney hasn’t "worked" in years. He makes money from money. As far as risk goes, this man’s life has been as much of a sure thing as you can get. Born rich, go to the best schools, sign on at Bain, wouldn’t start Bain Capital unless he was guaranteed to get his old job back in case it failed, took out loans in the name of the companies he was taking over. Yeah, he’s lived his life on the edge. Please.

Open Thread

Governor Palin’s Tweets