Democrats lose credibility on taxes

NY Times:

Long after President Obama finds a new secretary of health and human services, presumably one who has paid his or her taxes, the damage from this week’s failed nomination may still plague him and his party.

For years, the Democrats have struggled to shed the image of a high-tax party, and Mr. Obama made significant progress last year, according to opinion polls. But the succession of Obama nominees who failed to pay all of their taxes handed the Republicans a simple, powerful and possibly enduring argument in future tax debates.

“It is easy for the other side to advocate for higher taxes,” Representative Eric Cantor of Virginia, the House Republican whip, told a party retreat last weekend, “because you know what? They don’t pay them.”

That’s become a common refrain in conservative circles in recent days:

¶Senator Jim DeMint, a South Carolina Republican, on ABC’s “This Week” on Sunday: “I can see now why liberals don’t mind if the tax rate goes up, because they’re not going to pay it anyway.”

¶Roger Hedgecock, a California radio talk show host, on “Lou Dobbs Tonight” on CNN: “It came down to a situation where the American public realized the Democrats who always want to raise taxes on people didn’t want to particularly pay the taxes on people.”

¶Sean Hannity on his Fox News Channel talk show: “I guess the reason Democrats want to raise taxes, use class warfare, attack corporations is because they take everyone else’s money and redistribute it. But they themselves don’t pay taxes, so there’s no reason for them to worry about tax increases, right?”

The chorus underscores the reversal of fortunes for Mr. Obama and the Democrats on the tax issue. Mr. Obama spent much of last year’s campaign promoting his plan to cut taxes for 95 percent of Americans, promising to raise them only on those Americans who make more than $250,000 a year. Surveys during his general-election contest with Senator John McCain, the Republican nominee, suggested that Mr. Obama had erased some of the traditional Republican edge on taxes.

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Since much of Obama's tax cuts was for people who do not pay taxes, it sounds like it was specifically designed for Democrats. Sorry, I couldn't resist that. Maybe some late night comedian will find it useful.

Seriously, Obama's tax proposal was misleading. About 45 percent of the recipients would just be getting wealth transfer payments. Except it is not really wealth for the low earners and it is unlikely to stimulate the economy because they are not investors. It is basically a sink hole investment.