Washington Post Columnist: America Has Always Redistributed Wealth

Ruth Marcus at the Washington Post says that McCain’s criticisms of Obama on wealth redistribution are just scare mongering because America has always had a “progressive tax code” that redistributes wealth.

McCain’s angry denunciation of socialist wealth-spreading ignores the fact that the country has always had a progressive tax code. McCain himself once seemed to embrace the sensible notion that those who reap greater rewards should contribute more back.

Someone needs a history lesson.
For nearly the first century of its existence this country had no income tax. In 1861 a 3% tax on people making over $800/year was instituted to help fund the Civil War, but it was rescinded in 1872. In 1894 Democrats (go figure) instituted the nation’s first peacetime tax on income with a 2% tax on households making over $4,000/year, but that was declared unconstitutional by the Supreme Court in Pollock v. Farmers’ Loan & Trust Co., a ruling specific to taxes on income from property that also made taxes on wages difficult.
It wasn’t until the 16th Amendment was ratified in 1913 that we got our first real, permanent income tax.
So, to put it bluntly, a redistributionary income tax (“progressive” as the liberals like to put it) didn’t exist until just under 100 years ago. And comparing that tax, which was relatively small in its rates and tax base, to today’s horrendous rates on a narrow cross-section of Americans is just plain absurd.

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  • http://Array robert108

    BB: You keep trying to stretch and redefine to “prove” your original false statement. It’s still not “spreading the wealth”. In fact, granting rights of way to the emerging railroads enabled the creation of lots of wealth. You seem jealous of rich people. You seem especially fixated on Leland Stanford. Not so healthy.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Let me get this straight; collecting tariffs predominantly from the South, and spending them on railroads mostly in the North and West for the benefit of industrialists, does not qualify as income redistribution in your book?

    Baloney, to put it mildly. Yes, you can have wealth/income redistribution without an income tax, and anyone moderately acquainted with the history of our country knows it. And yes, it’s welfare, as nobody would know the names of Leland Stanford and his cronies if we hadn’t.

  • robert108

    You still confuse land subsidy with welfare; you aren’t being honest here.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Nothing confusing about it. I give one little piggy a block of cheese and a check. I give another little piggy a few thousand square miles of land and a check. Either way, it’s welfare.

    Deal.with.it.

  • 2Hotel9

    I already admitted she said it. Now, why will you not tell us why Barri had to have a motorcade to visit his dying granny? Was your cab not big enough for his head?

  • robert108

    Either way, it’s welfare.

    Wrong again. Your redefinition game makes discussion with you impossible.

  • Old&InTheWay;

    And Old, please to show me where the Constitution of the United States authorizes you to steal my property, labor, or money in order to finance your existence. Cite Amendment, Section, and sub clause. And do it now.

    Well, given the last exchange that we had, I must say I am hesitant to even acknowledge your request….but after thinking about it, I will leave it at this: Go back to any of my posts, and show me that I am advocating in favor of stealing anything of yours to finance my existence…oh, and do it now……

  • Mickey

    I thought I’d share this …

    CHANGES IN THE WORKPLACE
    You small business owners out there are preparing for life under a Barack Obama presidency. One of our listeners sent us some new rules for small businesses based on Obama’s ideals of change and fairness:
    As of November 5, 2008, when President Obama officially becomes president-elect, our company will instill a few new policies which are in keeping with his new, inspiring issues of change and fairness:
    1. All salespeople will be pooling their sales and bonuses into a common pool that will be divided equally between all of you. This will serve to give those of you who are under-achieving a “fair shake”.

    2. All low level workers will be pooling their wages, including overtime, into a common pool, dividing it equally amongst you. This will help those who are “too busy for overtime” to reap the rewards from those who have more spare time and can work extra hours.

    3. All top management will now be referred to as “the government.” We will not participate in this “pooling” experience because the law doesn’t apply to us.

    4. The “government” will give eloquent speeches to all employees every week, encouraging its workers to continue to work hard “for the good of all”.

    5. The employees will be thrilled with these new policies because it’s “good to spread the wealth around”. Those of you who have underachieved will finally get an opportunity; those of you who have worked hard and had success will feel more “patriotic”.

    6. The last few people who were hired should clean out their desks. Don’t feel bad, though, because President Obama will give you free healthcare, free handouts, free oil for heating your home, free food stamps, and he’ll let you stay in your home for as long as you want even if you can’t pay your mortgage. If you appeal directly to our democratic congress, you might even get a free flat screen TV and a coupon for free haircuts (shouldn’t all Americans be entitled to nice looking hair?)!!!

    If for any reason you are not happy with the new policies, you may want to rethink your vote on November 4th

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Actually, most ethanol subsidy money goes straight to those who brew the corn licker, so that would mostly go to corporations.

    Not quite sure what you’re trying to argue, though, 108. Certainly you would concede that (1979 bailout of Chrysler, bank bailout today, etc..) quite a bit of money taken from the taxpayer has been provided to favored industries?

    Now we might quibble that it’s “favored industry welfare” instead of specifically “corporate welfare,” as not all recipients are technically incorporated, but the point remains; if we are wrong to subsidize individuals for the “virtue” of being poor, we are simultaneously wrong to subsidize companies (incorporated or otherwise) for the “virtue” of being poorly run, no?

  • robert108

    Well, at least you admit NOW that railroads were sucking at the public teat.

    No. I stated it very clearly, and will repeat it as often as necessary, if you didn’t get it the first few times.

    But no, there really isn’t a difference between ethanol and 19th century railroads.

    Yes there is; a profound difference, which I have already explained, as well. You are welcome to your own opinions, but not to your own facts. Ethanol is an effort to “cure” global warming; are you really claiming that railroads were part of that effort? Ethanol is social engineering; railroads were not.
    Again, profound differences.

    Sorry you don’t get that.

  • Bat One

    Dawn,

    Your optimism is admirable, but regardless, the question isn’t whether the glass is half-empty or half-full. The question is how much of what’s in the glass does the person who earned it get to keep.

  • dawneyr

    Hey Bat. :) Thank you. I was addressing the part in Neiman’s post about voting.

  • http://sayanythingblog.com/ likwidshoe

    “realitybased”bob keeps on throwing McCain out there, as if that was some kind of trump card.

    Foolish.

  • Michael K.

    This brings up one of my “hobby horses”, the concurrent passage in 1913 of both the 16th amendment (Allowing income taxes) and the 17th Amendment (direct election of Senators). I have not read a detailed study of debate and passage of these changes to the Constitution (I hope some can recommend one), but it seems to me that together, they fundamentally changed the nature of government in this country. The 16th amendment gave the Federal government unfettered access to collect taxes and the 17th amendment removed the last restraint of federalism on the central government. Before this, many State Legislatures used to appoint Senators which made them directly accountable to the State government.

    This was probably the culmination of a process of centralization that started in the Civil War (see Gettysburg Address) but they only became possible with the strong Democrat (Progressive) majorities elected in 1912. It’s been nearly 100 years but the lessons about the size of change in a short period with a large majority should be a lesson for conservatives today.

    It seems to me that the repeal of one or both of these amendments would do a lot to improve this country.

  • robert108

    It’s agricultural welfare, fool.

  • Neiman

    Does it matter? It seems that roughly half or more of Americans are not troubled by the redistribution of wealth, so it won’t deter anyone from voting Obama-Biden.

  • Bat One

    Jerry,

    Inured as we are becoming to the vile tantrums and witless ad hominem of the “progressive” Left, I’d like to thank you for your civility. There is, perhaps, hope for our society after all.

  • dawneyr

    With all the ba ha ha aside, in this market, there is also an elephant that could “bear” a nip and tuck. Chin up, Quixote. At least one side of the equation has potential for long-term sustainability without crushing everything in its path. Still half full. :)

  • http://ndgoon.blogspot.com/ goon

    Rob that was an awesome picture.

  • Howard

    Obama’s first, second, and third priority is to get elected. If that means pandering to large numbers of unemployed, under employed, those on welfare, illegal aliens, and malcontents, he’ll be happy to throw them a few crumbs as a way to get their votes. He will also turn democracy and capitalism on it’s head, and villainize the affluent and successful in our society, in order to rally the masses behind him. With evangelical zeal Obama will convince his followers to replace reason with hope and belief … to blindly follow him … never challenge him … and embrace his words as gospel. In the real, and unforgiving world of economics however, when you immediately gratify everyone by feasting on the goose that lays the golden eggs, the economy looses it’s ability to continue generating growth and wealth. Obama is promising everyone a piece of the pie, whether they helped bake it, or not … but, only in a socialistic, or communist state do the non-contributors demand to share equally in the property that belongs to others. Immediate gratification is like a drug to the malcontents, but in the big picture, every farmer knows that you never eat your seed crop. If Obama gets elected, America will turn into a third world country, with massive government welfare programs, unable to generate jobs for it’s citizens, and unable to compete in the global markets. Keep America safe, free and strong … elect McCain/Palin on November 4th.

  • Bat One

    Dawn,

    I’d apologize for the mistake, but it occurs to me that both your remark and mine apply in either instance. Each fraudulent vote is a diminuation of our legitimate voting rights, the same as a tax diminishes the wealth we’ve earned.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    108, if they were doing just fine without help, please explain to me why every applicant for this help warns of the dire consequences of failing to help them? If the ViQueens don’t get help, they’ll leave for LA, if the MOA doesn’t get help, their business plan won’t work, if the railroad doesn’t get billions, we’ll get no coal……

    Sorry, but the applicants for corporate welfare meet your definition; not being able to make it on their own.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Although the large scale redistribution of wealth is a 20th century phenomenon, there were hints of it as early as Hamilton. We did central banking (redistribution from savers to banks), canal subsidies, railroad subsidies, high tariffs, and free land in the west–primary targets being farmers in the east and South, and primary beneficiaries being northeastern industrialists.

    We paid a steep price for this as well–both the Civil War and the “Indian Wars” were provoked in part by these policies. The South didn’t appreciate paying for the railroad lawyer’s (Lincoln’s) railroads to subsidize transport for their competition (western farmers), and the Indians didn’t terribly appreciate the railroad lawyer’s railroads bringing farmers into their land.

    So there is a kernel of truth to what the reporter claims. The trouble is that the history of income redistribution isn’t a terribly beneficial one.

  • robert108

    The amount of private capital available in the 18th and 19th Centuries isn’t any sort of valid comparison to that available in the 21st Century, either. IMO, the generation and distribution of electric power also no longer needs to be in the public domain.

  • robert108

    BB: “Welfare” is govt support for people who can’t pay their own way. While vote-buying subsidies might swell the coffers of some corps, it’s not “corporate welfare”. Besides, you know that the lefties use that to smear all corps who get any sort of tax reduction, which is what they really mean by “corporate welfare”. Clear now?

    For the record, I was against the Chrysler bailout under Carter, and this present bailout boondoggle is an obvious failure, as well.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Old&Intheway, the reason it’s socialism is because Obama is not actually giving much tax relief, but is rather making the “tax cuts” apply even if the person owes no taxes.

    In other words, for half the population, it’s not a tax cut, but is rather a welfare payment, and it rewards people for having low income. That is something that suggests socialism to me.

  • robert108

    BB: You have a common misperception. Historically, the only “subsidies” railroads received consisted of the granting of right of way on federal public land. Unlike welfare, which consists of confiscation and redistribution of earnings from taxpayers, those railroad subsidies involved land already in the public domain, and were thus nothing resembling welfare.

  • robert108

    Ethanol would not even be a market without the govt subsidies; ditto wind and solar. The railroads were a market waiting for the necessary capital. No amount of govt subsidy will ever make ethanol, wind and solar profitable, as the demand for energy is well satisfied with the stored solar energy in oil, coal and natural gas.

  • Jerry

    As usual Mickey, very entertaining…

    But for Neiman,

    Does it matter? It seems that roughly half or more of Americans are not troubled by the redistribution of wealth, so it won’t deter anyone from voting Obama-Biden.

    You are obviously an admirer of the former Soviet Union.
    The 1/2 of Americans you speak of are being bamboozled by Democrats and undersold on the peril by coolaid drinking Journalists..
    The tax raised on the Rich, is on Business.
    Busines pays the second highest taxes in the world to operate in the US. Which is why they leave.
    More will leave.
    Fewer jobs.
    Less tax revenue.
    Smaller Pie.
    Shrunken Economy.
    High unemployment.

    Those who did not experience the Carter years, now will have the chance.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    So then the fact that ethanol makers and farmers are going broke is evidence that we aren’t subsidizing either of these? Wee little problem with your logic; subsidies don’t ensure economic success. Paleoconservatives would point out that the opposite is closer to the truth.

    Sorry, reality is that railroads got large amounts of land and cash for building railroads. That’s why the UP and CP were building a lot of track parallel to each other near Promontory Point–you can still see the embankments that were built to try and get more land/money/government cheese.

  • dawneyr

    No apology necessary or desired, Bat. Thanks for commenting. :)

  • robert108

    The fact that some of the railroads went broke is evidence that your claim is untrue. I don’t think Wiki is accurate on this subject, btw. I have already described the nature of the “subsidies” for the railroads. It was certainly a jumpstart at a time when private capital was far less than it is today. Nevertheless, after that jumpstart, railroads had to compete in the free market, and some failed. Had they been GSEs, they would not have failed, as you should know.

  • 2Hotel9

    Sorry, Amtrak is not a railroad. It is a hole in the ground into which government continuously throws money.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Not just Amtrak. Keep in mind that the Union Pacific, Central Pacific, and a host of other railroads were subsidized in the 19th century and onward–bringing us (with the high tariffs need to fund the railroads) both the Civil War and the Indian wars, as well as numerous panics in the late 19th century.

    And yeah, it’s welfare, as the CP never would have been started without the railroad lawyer’s promise of subsidies.

  • robert108

    BB: The situation with Amtrak is also neither welfare nor subsidy; it is nationalization. Amtrak is a corporation in name only. It is outside the private sector.

  • 2Hotel9

    To be perfectly clear, railroads in America were destroyed by Unions and Democrat Party actions. Period. Full stop.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Actually, government floated bonds to fund the first transcontinental railroad, and subsequent railroads were also heavily subsidized.

    http://en.wikipedia.org/wiki/First_Transcontinental_Railroad

    In fact, the Great Northern is fairly unique in that it never received government subsidies.

    It’s an ugly truth, but it is nonetheless true; our government did in fact subsidize a lot of railroads at that time. The argument is whether it was worth it–and one thing worth noting is that the recipients very often went bankrupt. It didn’t achieve, arguably, its goals.

    But it did trigger the Civil War and the Indian Wars, poisoning relationships between caucasians and native americans for over a century.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    108, so you’re arguing that since the cockamamie argument for railroad welfare was different, that it is totally different from ethanol, which is supported by other cockamamie arguments?

    Well, I guess that there is a difference between cow and steer manure, but that doesn’t change where it ought to go.

  • robert108

    So then the fact that ethanol makers and farmers are going broke is evidence that we aren’t subsidizing either of these?

    Nope. I’ll explain it again: When the railroads were being built, private capital was very scarce, and a jumpstart from the govt was necessary; afterward, the well-run railroads succeeded and the badly run ones failed, just like they’re supposed to, in a free market.
    Today, initial capitalization is no problem for a good business idea, and subsidies are only necessary for bad ones that are politically popular. The situation is different.
    Again: railroads=good idea, scarcity of private capital; ethanol=bad idea propped up by govt subsidies.
    There is a difference.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Well, at least you admit NOW that railroads were sucking at the public teat. That’s a start.

    But no, there really isn’t a difference between ethanol and 19th century railroads. Despite massive fraud by the CP (that Leland Stanford used to build the college that bears his son’s name) and others, the massive subsidies for railroads failed to get them started right. Most pretty much were bankrupt except for the railroad acts passed by Congress in the late 1800s.

    The cost of the second round of subsidies; labor strife that continues to this day, as people got used to payouts unrelated to their actual productivity.

    The exception? The Great Northern, of course, which did not accept subsidies, and was virtually alone in being profitable at the time. J.P. Hill started by….

    ….buying a bankrupt railroad that had been started with government money. What did he get for his money?

    ….not even a functioning track. Just the right of way and very little rolling stock.

    So please, let’s discard the myth that somehow railroad welfare was some sort of “good investment” or somehow “different” from subsidies for ethanol, the Mall of America, or other things. The pleas for more subsidies and bankruptcy filings by subsidized railroads are part of history.

    Deal.with.it.

  • 2Hotel9

    And Old, please to show me where the Constitution of the United States authorizes you to steal my property, labor, or money in order to finance your existence. Cite Amendment, Section, and sub clause. And do it now.

  • robert108

    How much in corporate welfare has been spent in the last decade?

    There is no such thing as “corporate welfare”; you have been deceived by lying leftie propaganda. Also, President Bush’s modest tax rate cuts were for everybody; anything else would be class warfare.

    Again: you are drinking the leftie KoolAid.

  • robert108

    As far as the topic of this thread is concerned, the thinking behind the progressive income tax was to make sure that citizens would have enough to survive, as less wealthy people pay a higher percentage of their income for basic survival. When taxes were for the legitimate functions of govt, this made sense; now, it’s turned into a redistribution program, based on class envy and victim entitlement.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    2H9, exactly what is revisionist about pointing out the facts that:

    1. In the mid to late 19th century, railroads were heavily subsidized?

    2. That one of the reasons the South seceded was because of the tariffs that were to be charged to pay for the railroads?

    3. That one of the reasons for the Indian wars of the late 1800s was that the railroads had brought a lot of people onto Indian lands?

    These are all historical facts, and you can look up the laws by which they were subsidized, the secession documents of the Confederacy, and read histories of the West to understand the real tragedy of the UP/CP and other subsidized railroads.

    Revisionist history, on the other hand, is to claim that

    1. Railroads would not have eventually been built when the market was ready.

    2. The taxes paid by the subsidized railroads exceed the costs, including the Civil and Indian wars, of subsidizing them.

  • Old&InTheWay;

    Well, I’m certainly not in favor of socialism, as it’s truly defined, but I do have to scratch my head and wonder why the current governor of Alaska, given how her state inarguably and demonstrably “spreads the wealth around” to all it’s citizens, is the one leading this charge against the other guy….

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    My anti-American union advocacy? Say what?

    You can look it up, 2H9. Reality is that many/most railroads were heavily subsidized in the 19th century, and that unionization was a response to the unholy alliance between government and big business.

    Want to point a finger or two for the problems of railroads? Great. You gotta point at least one at the great railroad lawyer, Abraham Lincoln, if you want to be historically accurate.

    I’m no advocate of unions, but I understand that they arose because government colluded with big business to more or less keep many workers as slaves with company scrip, company stores, and so on.

  • Jerry

    Neiman,…

    My Appologies… Obviously I was mistaken..

    I would never seek to offend someone who I agree with..

    Your statmente,

    Does it matter? It seems that roughly half or more of Americans are not troubled by the redistribution of wealth, so it won’t deter anyone from voting Obama-Biden.

    Was not that clear to me..

  • 2Hotel9

    woofie, you are one of the assholes who told us all about how govmint had to subsidized ethanol cuz it is just so fucking necessary. So now you are admitting you are a lying fucking asshole?

  • robert108

    You keep insisting on using the false concept of “corporate welfare”. Again, “wealth redistribution” is taking away wealth and giving it to the non-wealthy for social engineering purposes.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    BB, you are in support of killing the railroads? How Democrat of you.

    I’m certainly in support of ending subsidies/welfare to railroads that cannot make it on their own, yes. On the other hand, profitable railroads like the Great Northern in its heyday are A-OK in my book.

    So yeah, I do take that from the Democrats–those of over a century ago, when many of them still believed in liberty and states’ rights.

  • Neiman

    You are obviously an admirer of the former Soviet Union.

    You are obviously a judgemental idiot!

    My comments were a condemantion of the fact so many people, according to a recent poll, have no problem with redistributiuon of wealth. I am a rock ribbed conservative, a capitalist and I want government to keep their hand out of my pocket.

  • 2Hotel9

    How about the Erie Canal? No tax revenue from it, either?

    Government did not take money from citizens and give it to the builders of railroads, it expanded the base of taxes collect through population expansion resulting from the railroads. Prior to the RRs tax revenue from population west of the Mississippi was a haphazard endeavor, and what taxes were collected remained in the local region, as the Founding Fathers intended.

    The Union/socialist line is that railroads were and are evil, they are the personification of Marx’s Capitalist Bourgeois.

  • 2Hotel9

    BB, you are in support of killing the railroads? How Democrat of you.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    2H9, given that railroads effectively paid no taxes until FDR (when corporate taxes were expanded to replace tariff and excise revenues as main sources of revenue), I’m having an awful difficult time believing your claim.

    But even if it were correct, it doesn’t change the fact that yes, indeed, the government has been in the business of distributing cheese for an awfully long time. Moreover, it’s got some pretty horrific effects, as anyone who served under Lee, Grant, Sitting Bull, or Custer knew very well.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Actually, the Great Northern and a few others were built without subsidies, and they were profitable where the subsidized ones were not, paradoxically. So to claim that we wouldn’t have railroads without the subsidies is just plain false. Good business plans would succeed, and business plans that needed a subsidy would (and did) fail, just like always.

    So is the claim that government profited massively from the railroads. The reason is simple; government has never assessed taxes on railroads per se, hence the first actual revenue from railroads would be when FDR imposed heavy corporate income taxes.

    Same thing with the Erie Canal, and all canals, really. You collect duties and excises, ahem, at international ports. No tax revenue, especially when you consider that subsidies to one area (say upstate New York) diverted funds that could have enabled more profitable development elsewhere.

    In short, railroad and other subsidies are huge money wasters. I would think I wouldn’t have to explain this concept to “conservatives.” :^)

  • robert108

    It’s still neither welfare nor redistribution, no matter how hard you try to make it so. Again, there was a scarcity of private capital then. We have public utilities today because of that fact, even though electricity could be privately owned and capitalized now, IMO. If we did that, we wouldn’t be facing shortages like we are today.

  • 2Hotel9

    Wow, railroads never paid taxes. Just wow.

  • robert108

    Two: The thrust of what the lefties are claiming here is that redistribution works, and BB is using the railroads as an example of that. Shakey ground. In fact, lefties always bash the “Railroad Barons”, while in reality they built the transportation infrastructure in this country in the 19th and early 20th Centuries. You can’t have it both ways; was it the govt redistribution that built the railroads, or was it the “robber barons”? That’s just playing the class envy card both ways.

  • 2Hotel9

    Bottom line, the government profited/gained more from the railroads the than railroad barons did. Going back and parsing the details does not change that fact.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Well if you want to pick nits about it, the first white people to cross the plains did so on foot and in canoes, but does that really change the fact that huge conflicts with the South, and with the Indians, really started when people started to make it easy to get there with railroads?

    These welfare decisions have consequences, and just because the recipient is a little more respectable looking doesn’t mean that it’s not welfare. You open up the Plains, you get more sales for makers of rail stock, Deere & Company, Cyrus McCormick, and a bunch of other people who….

    ….did business in Lincoln’s home state of Illinois.

  • robert108

    108, if they were doing just fine without help…

    I didn’t say that; what I said was that they were surviving, and govt subsidies just lined their pockets. It’s not “welfare”, it’s subsidy. There’s a difference. You are using the wrong term.
    I admit that “corporate welfare” has a much stronger emotional appeal for the lefties, but it’s simply not true, nor is it universal, which is also one of their inferences.
    I was clear on this the first time.

  • 2Hotel9

    Sorry, babydoll. The US government made massive amounts of money FROM railroads, in several different ways. Keep spewing the revisionist history, it is funny as hell.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Are you going to argue, then, that wealth was not redistributed to Leland Stanford and his “gang of four” through railroad subsidies?

    Yes, it’s not “to the poor,” but there’s a Pac Ten school near you that stands as testimony to the fact that an awful lot of wealth was, indeed, redistributed to Leland Stanford and his cronies.

    And all those canal builders, and all those other railroad builders…always there’s an argument for corporate welfare.

  • robert108

    Wrong. It’s the reverse. The plains were crossed by covered wagons. It’s a matter of history. You’re trying real hard to stretch the facts to fit your predetermined position, but no dice.

  • robert108

    All govt subsidies are money wasters, as conservatives have always maintained. The confusion here is characterizing subsidies as “wealth redistribution”. Subsidy is for the purpose of “helping” the market(whether it does or not), while wealth redistribution is for the purpose of “social justice” or social engineering purposes.

  • robert108

    BB: No income tax in the 19th Century, therefore no redistribution. Just a tiny flaw in your reasoning.

  • 2Hotel9

    And I see no citation of where in the US Constitution the government, or anyone else, is given the right to steal money, property or labor in order to finance your, or anyone else’s existence.

  • 2Hotel9

    And you have yet to show or prove a single “welfare” payment to any railroad other than Amtrak. Why is that?

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    And what would Leland Stanford have been without massive railroad welfare? He would have been among the “non-wealthy” without all the millions he stole from the government, for the purposes of engineering a society that crossed the Plains.

    It.Fits.Your.Definition.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Created a lot of wealth? You have just wandered into a confrontation with Bastiat’s “that which is unseen.” Are we to seriously argue that the money spent on railroads would not have been spent on other, and profitable, enterprises? Are we to claim that the self-interest of Southerners is so misguided that, say, they wouldn’t have used their own money to build more of their own railroads?

    And are we to seriously argue that western railroads would not have been built as people saw markets forming?

    Sorry, 108, but the history of railroad welfare is one of squandered fortunes granted to lawless men, who in turn squandered it. It’s not that complicated; if AFDC was a disaster, and it was, so were welfare payments to railroads.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    2H9, you can use Google, too. We’ll get you started:

    19th Century:

    Union Pacific
    Central Pacific
    Northern Pacific
    Santa Fe
    Southern
    Southern Pacific
    Chesapeake and Ohio

    20th Century:

    The above.
    Any light rail system today
    Conrail
    Amtrak

    Or, look at your tax forms, which have special lines for things like “railroad pensions” to give them special tax treatment.

    It’s.not.that.complicated.Government.has.given.welfare.for.nearly.two.centuries.here.

  • robert108

    108, so you’re arguing that since the cockamamie argument for railroad welfare was different, that it is totally different from ethanol, which is supported by other cockamamie arguments?

    Wrong again. I can see now that you simply ignore facts and logic that don’t agree with your position, since I have explained the clear differences several times already. Subsidies aren’t welfare, again.

    Your manure analogy is very revealing of how you think.

  • robert108

    It’s not “welfare”; you’re being dishonest in a desperate attempt to defend your ego.

  • Hannitized

    And 2Hotel still has not proved the elinas said it. Not one piece of evidence. Deal with it.

  • robert108

    Ruth Marcus at the Washington Post says that McCain’s criticisms of Obama on wealth redistribution are just scare mongering because America has always had a “progressive tax code” that redistributes wealth.

    Meanwhile, back on topic, the purpose of the graduated, or progressive, income tax was to spread the cost of govt, not to “redistribute wealth”. It has always been used by Dems to try to redistribute wealth, but they have only succeeded in skewing the burden of their profligate spending unfairly.

  • 2Hotel9

    And still not one single example of welfare other than Amtrak. Not. One. Deal. With. It.

  • http://sayanythingblog.com/readers/author/realitybasedbob/ realitybasedbob

    Image and video hosting by TinyPic

    MCCAIN: Could I point out, one of the fundamentals of a town hall meeting is, we respect the views of others, and let them speak. So, look, here’s what I really believe, that when you are — reach a certain level of comfort, there’s nothing wrong with paying somewhat more. But at the same time, that shouldn’t be totally out of proportion. There’s some countries such as Sweden where it doesn’t pay anything to work more than six months a year. That’s probably the extreme.

    But I think the debate in this country is more about tax cuts rather than anything else. And frankly, I think the first people who deserve a tax cut are working Americans with children that need to educate their children, and they’re the ones that I would support tax cuts for first.

  • Old&InTheWay;

    In other words, for half the population, it’s not a tax cut, but is rather a welfare payment,

    OK, Fair enough, I can definitely see your point with that…but I am still curious when you view it that way, why is there not more outrage for the deal that the Alaskan citizens receive and that Palin was loudly praised for increasing….I still get a sense of hypocrisy from the whole thing…

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Actually, that’s not welfare. Here’s the logic:

    1. Oil drilling on state land brings in revenue.
    2. Revenue plus tax revenue exceeds state government needs.
    3. Excess sent to taxpayers.

    That’s not welfare. That’s rent on public lands.

  • 2Hotel9

    WaPo has always been in the forefront of history revisionism. Just read it sometime.

  • Old&InTheWay;

    Well, as I am currently reading it, Obama’s tax plan wants to let the Bush era tax cuts for the wealthy expire (which I believe McCain went on record as being against, back in the day) and offer some middle class relief. Is this socialism? How much in corporate welfare has been spent in the last decade? If not the last month? Just wondering…..

  • robert108

    Subsidies and welfare are not the same thing. They’re both wrong, but for different reasons.

  • 2Hotel9

    Oh, yea! Stick to that history revision, BB, it is all you have.

    The US government profited massively from railroads, up until the point your anti-American, anti-human Unionscum shit fucked it all up.

  • WOOFX

    Ethanol subsidies

    There is no such thing as “corporate welfare”

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