Eat the rich

Here’s Lawrence Kudlow on “The Democrats’ Class-Warfare Death Wish”:

There are many reasons why the tax-the-rich, class-warfare battle cry is a non-starting political dud. But here are a few eye-openers.

According to exit polls from last November's presidential election, middle-income voters showed no signs of supporting class-warfare policies. In the $50,000 to $75,000 income group, which comprised 23 percent of last year's electorate, Bush defeated Kerry 56 percent to 43 percent. Bush also won the next higher income bracket, the 14 percent of voters earning between $75,000 and $100,000, by a margin of 55 percent to 45 percent. All in all, exit polls showed that people earning $50,000 and above -- a group representing 55 percent of all voters -- went for Bush 56 percent to 43 percent.

It would appear that the middle class once more rejected a class-warfare, tax-the-rich platform. This won't stop Democrats from again committing political hara-kari, but voter data seem pretty conclusive that populist left-wing campaigns against rich people and businesses are doomed to failure.

Another reason for plunging Democratic fortunes is that roughly 50 percent of U.S. families -- or about 95 million people -- are card-carrying members of the investor/ownership class. Investors tended to vote in favor of Bush by about 10 percentage points. They are undoubtedly quite happy to create wealth by investing and keeping more of their dividend and stock market gains.

The Democrats make yet another huge mistake in their opposition to Social Security reform through personal savings accounts that can be invested in financial markets. If you take them at their word, Democrats must think investment markets are risky gambles. The voting public thinks differently.

The top 10% income bracket in America already pays for two-thirds of all taxes collected in the United States, up from 55% in 1986. The class warfare strategy of the Democrats is an exhausted and immoral position – a cudgel used for purely political reasons. The future of America is based on economic freedom, not tired slogans and confiscatory policies from the 1930s.