Friday, October 31, 2008

Karl's Weekend Reading

Andrew Walden reviews the Obama-Communist past at the American Thinker, Barack Obama: Red Diaper Baby.

Barack Obama is a "red diaper baby" who has spent his formative years -- literally from the moment of his birth -- interacting with members and sympathizers of the Communist Party, USA.

Paul Kengor, also at the American Thinker, returns to two articles written by Obama's mentor, and known communist, Frank Davis Marshall. Dreams from Frank Marshall Davis:

Obama's recent remarks on wealth redistribution made me think of two Davis columns in particular, both for the Honolulu Record:

The first was Davis's January 26, 1950 piece, "Free Enterprise or Socialism?" Davis hoped that America and its economy were at a turning point, as if a kind of perfect storm was brewing that could at last allow him and his comrades to realize their dreams of a socialist America. They would need to trash the current free-enterprise system and argue for a change to something else. Of course, they could not fully disclose themselves, their beliefs, and their intentions, although any thinking observer could easily read between the lines. The key was to gain the support of the people who didn't know any difference.
[article #2] For Davis, the only hope was a huge, emboldened federal government that could save Americans from the capitalists, that could rein in fat-cat corporations, that could slap down Wall Street and its excesses, that could spread the wealth, and that could ensure that the poor could buy a home.

And, the Heritage Foundation published a comparison between Obama's and McCain's tax plans. Here are their summary points and conclusion (with our emphasis), and one of the article's graphs.

1. Jobs respond more to McCain's plan than to Obama's.
2. Overall economic activity more vigorous under McCain's plan.
3. More after-tax spending potential under McCain than under Obama.

The economy improves under each plan as compared to the baseline. The baseline forecast assumes that all of the Bush tax cuts disappear, which raises the cost of capital and marginal tax rates. Both candidates plan to reduce taxes com pared to this scenario.

Senator McCain's plan is substantially better at spurring economic growth than Senator Obama's. This is not surprising, since Senator McCain focuses on economic growth and job creation while Senator Obama focuses on the redistribution of income. As Tax Policy Center Director Len Burman states, "the major themes of the two plans are, in the case of Senator McCain's plan, that the major emphasis is on economic efficiency—cuts marginal tax rates, improves economic incentives…. In the case of Obama's plan, the goal is primarily to improve pro gressivity…to lower tax burdens on low-income people and raise them on higher-income people."[10] Each presidential candidate achieves his stated goal,with Senator McCain generating the most new jobs, growth, and additional income for individuals. Senator Obama's plan drives up the tax rate for individ uals with annual incomes above $250,000 and redistributes money to workers with lower incomes.