Tuesday, October 21, 2008

Sorry, guys, it's too late to cry "socialism".

I've been seeing some really pathetic claims of "socialism" regarding Obama's tax plan. And, honestly, some people can make the honest claim that they believe his plan to be socialism... but the majority can't.

See, his plan is based upon the same idea as the Earned Income Tax Credit, a hugely popular tax credit for people who earn low wages and have children. The EITC is a refundable tax credit - meaning, even if you pay no income tax, you can get money back from the IRS if you can claim the EITC.

And Obama's plan is based upon similar principles. Yes, it includes refundable tax credits, just like the EITC, which means that some people who pay no income tax will get money back from the IRS.

Now, anyone who cried "socialism!" for the popular EITC has a right to cry "socialism!" now. Anyone else? Well, sorry, it's too late. You kept quiet when it was politically convenient to keep quiet, so you lost your chance to make a noise when noisemaking became convenient. Hey, don't blame me; I'm just the messenger.

Comments:
Nice blog! Can I add that the total cost to the federal government of both the EITC and the Child Tax Credit is about $45 billion, or 1.5% of the $2.9 trillion federal budget. Hardly a jaw dropping amount of money and hardly worth the attention its getting on the campaign trail.
 
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