Income Inequality and Class Warfare Rhetoric

Income Inequality and Class Warfare Rhetoric

You hear a lot about income equality and are bound to hear much more during the presidential campaign.

The Tax Foundation notes that contrary to recent reports suggesting the Bush administration's tax cuts increased income inequality, the gap between rich and poor has been mostly driven by the business cycle; in other words, fluctuations in economic activity.

In good economic times, this usually means that while people at the top are making more money, so are people in the middle and low income ranges making more money.

So ask yourself: Do you care if the boss made $750,000 last year and is making $1 million this year, if you were making $75,000 last year and $100,000 this year? Probably not. You'd be happy that you, too, are making more money.

Liberal Democrats delight in their class warfare rhetoric, but even if they taxed the $1 million salary at a higher rate, the government wouldn't give it to the middle- and low-income people. Politicians spend it on other things, mostly so they can get re-elected. Get it?

I'm Cal Thomas in Washington.

Publication date: February 1, 2012

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