State of the Nation

The recent SOTU speech proved a microcosm of O himself; a world class con man or a dedicated reformer. I admit to a certain vulnerability when it comes to believing profound oratory skills, and O certainly possess them.

His critics charge O with stirring up class warfare in his efforts to balance national incomes which are currently and decidedly favoring the wealthy. We suffered heavily from Wall Street greed, falling stock markets and depreciating investment values and I directly blame the finance and banking people for our losses. We are not alone and the reduction of the middle class in American is becoming legendary.

The rightists argument is that they need tax breaks and incentives to generate income to create and upgrade American commerce and industry and in the process create jobs. There is some historical evidence to suggest this strategy has proven itself, e.g. under President Reagan's tax cuts back in the 80's. Today, every single candidate on the right is an avowed, dyed in the wool acolyte of Reagan economics.

A case in point. Last year, Gingrich paid taxes to the tune of 30% which is the legislated level for millionaires. Few, like Romney, pay at this level as loop holes such as reduced capital gains tax assessments and write-offs from charitable investments legally permit them to pay less. Romney paid about 14% of his income in taxes. His income, by the way, was almost entirely from capital gains and he donated heavily to church and charity.

I believe in a progressive income tax in a capitalist and democratic society. We have such a system, but it is riddled with exemptions, exceptions, and loop holes legislated by the rich and favoring the rich. Thus, Warren Buffet, one of our richest, pays income taxes at the 15% level; less, he notes, than the level paid by his secretary.

I agree with O's appeal to the people that the wealthy should pay their fair share of income taxes. This means closing loop holes. It also means that churches and charities will seriously suffer. I believe we need to rebuild the middle class and do more to improve the lot of our expanding poor population. I don't mean more in the sense of welfare, handouts, food stamps and other entitlements, but rather job training, job creation, reducing outsourcing with a view toward employing that part of the population willing and able to work.

Many commentators have oft observed that one of America's great strengths as a nation is its strong middle class. I see the wisdom in this and am content to tolerate a fringe group of slackers on the lower side of the economic scale and another fringe of super rich on the other. This equation has been seriously altered as you know and we are now in need of redressing the balance. In short, I support O's plan to exact greater tax payments from Americans earning more than a million a year who pay less than their tax bracket demands.