A Complete Ignorance of Facts

Well, Mitt Romney has really stepped in it now. Take a look at this video.



There are many levels in which his statement is completely wrong.

The 47 percent of which he speaks (it's actually 46.4 percent) has to be examined more closely. Of those 46.4 percent, 28.3 percent pay a payroll tax while 18.1 percent pay no payroll tax. This remaining 18.1 percent does pay other taxes (sales tax, state tax, city and local taxes) so to intimate that they aren't paying taxes and are freeloading/dependent is ridiculous.

It's also important to note here that the majority in the 18.1 percent are on EITC are on it for less than two years. This is not a permanent situation for these people as many of them are working. In fact, Mitt here (along with the many others on the Right) are under the mistaken impression that people on government assistance aren't working. Most are. In fact, the working poor rate (calculated through 2010) is at its highest since 1987.

It's also very dishonest to place so much emphasis on poor people which brings me to a recent conversation at the gym with a very wealthy (and very conservative) acquaintance of mine. He owns a manufacturing concern in Minnesota that supplies equipment for people with disabilities. He corners me constantly to yell about Obama and how he is __________ (you can fill in whatever you like here). Yet a few simple questions put to him reveal that he himself is a massive rent seeker who pays very little in the way of income tax or corporate tax due to the amount of money he makes and the nature of his business (obviously, heavily subsidized by the government).

Ironically, he is part of the 47 percent of which Mitt speaks! He made $2, 178, 866 in 2011 so he paid no federal income taxes. And he's certainly not going to vote for the president. In looking at who else comprises Mitt's 47 percent, we see the other main reasons why Mitt's comment is completely wrong (and, politically, very dangerous for him).

Many of these dependents are elderly who worked their whole lives (paying into Social Security and Medicare) and are now collecting their benefits. In addition to not being freeloaders, many of them are going to vote for Mitt Romney. At least they were:)

Many of the very poor in Mitt's 47 percent hail from red states.Of the 10 states with the highest percentage of people who pay no income tax, eight are solid red states. In fact, blue states like Connecticut, Vermont, Maryland, Massechussits, and my home state of Minnesota that are on the bottom of the list have taxpayers that are essentially paying for those folks in red states. That's OK with us, though, we don't have a problem with social welfare programs:) Here's that study from the Times again that backs this up.

Are the people in these eight red states going to vote for the President? Some will, obviously, but some won't because of abortion or other faith issues. Again, I wonder how many of these folks will change their vote based on this comment.

One can also look at government employees, soldiers, veterans, people who have gotten Small Business Administration loans, people who work for government contractors or companies the government bailed out (like banks and GM) are at least somewhat dependent on government. GE paid no taxes in 2010. Are they part of the 47 percent? How about defense contractors? How about oil? They get subsidies and are obviously dependent on the government for increase profit yet no one complains about them. Nope, it's just the poor people who are all lazy, don't work and sit around playing Xbox and eating Cheetos all day long.

Now, ol' Mittens was obviously trying to convince some fairly deep pocketed folks that he can win so maybe we should give him a break.  After all, he was telling them what they wanted to hear. No one really knows if he believes what he is saying but what he is saying is a complete a total myth. There are not 47 percent of Americans who pay no income tax and those 47 percent are not all going to vote for Barack Obama.

To me, the larger discussion is much more interesting. In breaking apart this myth, we can clearly see the integral role that government plays in our society. Those who want to lessen the role of it seem to completely ignore the clear benefits that it provides, not only in their lives but the lives of millions of Americans. The practical application of such an exercise (shrinking government) seems much more unrealistic given the facts listed above.

Simply put, our economy is bigger than it was at its founding so our government has to be big as well. There's nothing wrong with this and it's certainly not communism, fascism or socialism. It's what we have always done and done very well, given the challenges.

Welfare capitalism.