The law. State sovereignty has been eroded to the point that any law/regulation you come across in daily life is as likely to be federal as state (or the federal government using states as their agents).
Walk into a store and you'll see notices posted about federal and state employment laws. Buy a song on itunes, and you're presented with pages upon pages of contract language, most of which is made relevant by our laws. Buy food and it has to be regulated by the FDA. Buy stocks and your broker has to be regulated by the SEC. Go to college and get financial aid from the government.
Ah, but this is an indirect interaction with government, not a direct one. The business owner is interacting with government, you are not.
From: red sox 777 | #230
Also, the marginal tax rate you speak of is paid by very few people- basically it's a levy on the 5% after the top 1%- the top of the middle class. Doctors, lawyers, engineers, bankers, and small businessmen. But not the bankers and lawyers at the top of their field (such as Harvard grads Obama and Romney) nor very successful businessmen (because then they have large businesses that are better able to maneuver around the tax code). Yes, class warfare exists, and the principal action in it right now is the continued attack by the rich on the middle. In war, you attack the most dangerous parts of your enemy's position, which is why the taxes are focused on this group (the 2nd 5%). These are the people most able to fight back, so you want to render them powerless.
And? This just furthers my point that Obama and Romney are not substantially different. If we assume they agree on the entire taxation system in the United States EXCEPT that when it comes to the top marginal rate, they have a 5% difference, then their overall position on taxation is something like 99% identical.
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