We are told Fareed Zakaria is an intelligent man, a man of letters and a journalist. With his latest article in TIME, I’m just not seeing it. It is full of contradictions and transparent attacks on conservatives followed by praise for Ye Olde School conservatives, who espoused more or less the same thing as current conservatives.
Zakaria starts by praising the classical conservatives for basing their ideas on reality, as compared to the Marxists as socialists who start from an imagined society. The great conservative thinkers, he goes on, have tried to understand society, accept it and then help it evolve. He’s one hundred percent correct.
This is the point at which he begins to go wrong. His main claim is that conservatives have moved from the concrete to the abstract and he laments this supposed shift. His first attack is on the idea that Americans are over taxed. While it can be argued that America has a relatively low INDIVIDUAL tax rate as compared to other industrialized nations, he doesn’t take into effect two main points. If one includes State taxes, for those states that levy these as well as other taxes, the mean tax rate on Americans is approximately 40%. More importantly the CORPORATE tax rate on American businesses is the second highest amongst OECD nations, also at about 40%. Zakaria goes out his way to point to Germany as a country that has high taxes while avoiding the same financial issues that we see in the US. That is a debatable issue, one that balances on Germany’s role in the European Union and its control of the Euro, but one thing that the article leaves out is that, in 2008, Germany cut its corporate income tax rate by 8.7%, putting it as one of the countries with the LOWEST corporate income tax rates.
The next straw man Zakaria tries to build is in finding another President who has been as hostile to business as Obama. Yes, Nixon was not a conservative when it came to business. Yes, Nixon presided over 70% tax rates and price controls, but nobody can say that Nixon took every opportunity to bash business, increase the regulatory state exponentially or create such a wide swath of uncertainty in the business markets.







Subscribe via RSS
Got a Tip?