What’s all this about Joe the Plumber? Must he spread his wealth, will he be prejudiced if he buys the company, earning more than $250,000. The truth is that no one is being fully straight with us. Let’s think about it.
The U.S. government, at the behest of the Bush Administration and with the approval of John McCain and Barack Obama, has enacted a bipartisan bail out/rescue expenditure of some $700 billion. Where does that money come from? It can come from U.S. government debt, meaning that the U.S. government will borrow the money abroad, or it will take it from tax payers. Either way, eventually taxes will have to be raised.
There is no spending freeze in the world that is going to pay for this. As a matter of fact, Nobel Prize winning economist, Paul Krugman, has just said (as I have) that we will need to increase government spending to get us out of an economic recession.
So we are going to have to pay for the $700 billion anti-freeze, $300 billion of which McCain says will go for mortgages. We can’t live on tax breaks forever. Even though McCain said that U.S. corporations pay the least amount of taxes in the world, this is simply not true. On average, between tax loop whole, exemptions, and deductions, American companies pay around 5% of their profits in taxes. McCain says that is a no-no. So who is McCain going to tax?
Joe Plumber admitted in an interview yesterday that he would get a tax break under Obama’s plan because he makes under $250,000. Nevertheless, he didn’t think it was fair that if he made over $250,000 that he would have to pay more. Why wouldn’t that be fair? Because he would no longer be Joe Plumber? How many Americans are really worried about the risk of reaching over the $250,000 mark? It seems to me that Joe Plumber is more like Joe Lawyer, Joe Doctor, Joe Wall Street than Joe Middle Class.
Paying more taxes may be un-American, but maybe it is time for us to think about who pays taxes and why we pay taxes. The fact is that the U.S. is being left behind. It can no longer compete with other developed economies to attract the best skilled workers. I have been living in Europe for eight years now and while I have met people who would love to work in the U.S. to get that American Experience, I have never met anyone who thought that our quality of life was better. Think about it. Across Europe, workers get free medical care, between 5 to 7 weeks of paid vacation, and women get a minimum of four months paid maternity leave. Americans may claim that this is socialism, but it works. Yes, I may prefer American trained physicians, but the quality of European medicine is not that much different. Sure I would love to drive a Ferrari, but who can afford one?
Essentially our politicians are trying to sell us a Ferrari that no one is willing to pay for. The should be honest and tell us that the days of tax cuts is no longer sustainable or even in the public interest.