Redistributing the wealth

The self-described conservatives, libertarians, and Republicans here at Marshall-Wythe (and there are many) keep rekindling the phrase "redistributing the wealth," in relation to President-elect Barack Obama's middle class tax cut. One classmate of mine even managed to mention it during Evidence class this morning, in response to the professor's question about self-incrimination. I missed how those two concepts, wealth redistribution and self-incrimination, had anything to do with each other. Perhaps someone should ask Joe the Plumber.

Recall that it was Obama's conversation with Joe the Plumber in which Obama used the phrase, "spread the wealth around." Not long after that, conservatives (led by Matt Drudge) dug up this 2001 interview that Obama gave to WBEZ radio in Chicago, in which he talked about the Warren Court of the 1960s, which by Obama's account, did not engage in much "redistribution of wealth." For a much more academic discussion of this than I'm capable of, read this fascinating account of Obama's 2001 remarks. Obama's conclusion, as documented in the 2001 interview, is that redistributive change is not possible (or necessarily desirable) through the courts. One cannot know for sure if that is Obama's driving factor in leaving the Ivory Tower of academia for the political arena, at least not without asking him, but I tend to doubt it.

So what would Obama do with our wealth (now that we've lost $1 trillion of it)? For starters, Obama's middle class tax cut (which, by the way, he's been pitching since the Pre-Caucus Era) can be found here. Obama's plan, if enacted by Congress, would cut taxes for families making less than $250,000 a year (e.g., Samuel J. Wurzelbacher, my parents). For the wealthiest 2% of Americans, those making more than $250,000 a year (see the Clintons, Bushes, Obamas, McCains, et al.), taxes will increase to the same levels they were in the 1990s. This will have the effect of increasing, not redistributing wealth, to the vast majority of us. We'll be able to save it, or at least pay off some debt, while richer Americans will go back to paying a larger share. According to a few of these overwhelmingly rich Americans, that's quite alright.

Instead of all this talk about "redistributing the wealth" and socialism, then, perhaps we should spend a little more time debating the merits of a middle class tax cut, because that's what Obama wants to do while in office. It might not get as many laughs in Evidence class, but it's a more fruitful discussion.