Among the middle class and/or uninformed, it is a generally held but wrong opinion that Republicans only give tax breaks to the top 1-2% (i.e. the Rich) and tax the poor (i.e. the rest of the country), while Democrats give tax breaks to the bottom 98%, and tax the rich. The reality is that the Bush tax cuts of 2003 were the most progressive tax cuts for the middle class in quite some time. (Don't get me wrong, I think that Bush is an idiot economist...his tax cuts are good policy, but only when combined with less spending. Unfortunately Bush is a quasi-Republican when it comes to taxation-where he continues to tax the rich and undertax the welfare addicted masses- and a Democrat when it comes to spending. This is the worst possible mix.)
Take a look at the Wall Street Journal's analysis of the Bush tax cuts back in 2003 HERE, and more importantly, HERE.
Overlooking for the moment the role this (unfortunately) plays in (undermining) trickle-down economics, one must be turning a blind eye to the facts if it's believed for a moment that Republicans don't help the little guy. Simply put, the tax on the middle class has been cut significantly, which, as a solid member of such class, I feel not only in rate deductions but also in credits. How is this possible? Because the rich, while getting a tax cut under Bush, will make up a greater portion of the total tax revenue. This is bifurcation of tax revenue at it's worst.
Families with incomes over $100,000 would end up paying a larger share of the total income tax. These families would pay 73% of all federal income taxes. Not to put too fine a point on this income redistribution, but taxpayers with incomes over $200,000 could expect on average to pay about $99,000 in taxes under Mr. Bush's plan.But take a look at the Obama reality. Under the Obama plan, 95% of working Americans will get a tax 'relief'-but 10% of America will get screwed more than even he recognizes. Howso? Because when he cuts income taxes on the middle class, he'll raise it on the wealthy publicly and on everyone privately- he proposes increases to the social security tax, death tax, capital gains tax, payroll tax, etc. etc. But he's also going to increase spending. So he'll raise taxes even higher (one wonders why the $200,000 earners paying up to 73% in taxes haven't revolted yet. They will soon). This results in wealthy having less money to 'play' with.
'What's the big deal', you ask? 'Who cares if some rich jerk can't afford another yacht?
Simply put, the wealthy spend the greatest percentage of their money investing in American Markets. What they spend on goods is trivial compared to their investments. They do this because they are greedy and they want more money. The poor and middle class spend the greatest percentage of their money on goods (and usually goods which make them 'feel' wealthy like big screen T.V.s and new foreign cars). They do this because they are greedy and they want others to think they have more money. So while the wealthy are putting money back into American markets, the poor and middle class is busy giving their money to China, Thailand, Saudi Arabia, etc. Truly, if Barack Obama becomes president, he will ensure that every single person in America will have a home, two car garage, and 2.5 big screen TVs.
Thus the result of taxing the rich and giving it to the poor is that American companies won't have investors (because the rich can't invest, and they're also not selling goods because the poor are buying cheap foreign crap rather than American goods)
Thus, when Mr. Obama and the Democratic economic machine gets into office, plan on more American companies either going out of business or going overseas. And soon after that you'll lose your job.
And then you won't have to pay any taxes.