Posted by
ClearCommentary.com on Monday, August 18, 2008 2:45:32 PM
Although we've highlighted the unpersuasive explanations from liberal leading lights as to why Obama isn't decimating McCain, we can't pass up our favorite leftist, Paul Krugman, who rarely fails to misread trends. Writing in Sunday's New York Times, he argues that Obama's lack of passion on economic issues--not his message--may well lead to a loss in November.
Mr. Krugman seems to have missed the education of the American tax payer, which began with Ronald Reagan and continued under Bill Clinton, finally reaching its zenith under George W. Bush. It's taken quite some time, and the process is by no means complete, but many, perhaps most, Americans seem to have an intuitive understanding that increasing the share of their income to the government is not only against their self-interest, it inhibits economic productivity. Moreover, every time taxes have been cut, federal tax receipts increased.
That's why, in a debate several months ago, Obama was flustered when asked by the moderator why he supports increasing the capital gains tax since every time it's been lowered receipts increase. The man from Harvard didn't have a cogent explanation because there isn't one. The same applies for personal and corporate taxes, dividends, and every other burden or benefit that results from hard work and investment. That's the message that McCain has been trumpeting and it appears to be resonating with an electorate that correctly understands it already pays too much in taxes, and that the smart response to an economic slow-down is to reduce taxes--read, make the Bush tax cuts permanent--not increase them.
But for Krugman, it's all in the rhetoric, not the policy, so he recommends that Obama borrow from Clinton's sharp-edged politics, forgetting that the latter was a convert (albeit a slow learner) to the virtues of welfare reform and understood the value lower corporate tax rates, just two issues that Obama's in the dark about.
For a more informed view, we turn to Kevin Hassett, writing in Bloomberg.com. He provides a few lucid lessons about finances and taxation that everyone ought to read because it illustrates the supreme stupidity of the Democrats' distorted policies in general, and Obama's specifically. He's particularly strong concerning the left's enduring embrace of corporate bashing. We could add to his arguments the popular jihad against 'corporate welfare,' which even McCain likes to lambaste.
Although a flat tax structure with zero deductions has an undeniable allure, it's a political pipe dream, so favorable tax treatment of corporations--not unlike homeowners--is likely to continue. But more fundamentally, the political message implied by juxtaposing 'welfare' with 'corporations' is a misguided and unwarranted broadside. To wit, traditional welfare is corrosive because it provides financial reinforcement for phantom efforts, whereas providing tax incentives for corporations is a different matter because they actually produce goods and services, as well as stock equity and, in many instances, dividends.
That dovetails nicely with Krugman's vilification of corporations, but it's a message that won't pass through the impermeable membrane of liberal politics because Obama is too beholden to the hard left. As such, no revision of his rhetoric or infusion of passion can change his lethargic--Krugman's word--efforts to reach voters.