Socialism: Are most Americans actually this socially illiterate?

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Taxes are obviously an important political topic, seemingly as we are in a recession and as far as Regonomics teaches, the less taxing the more economically viable. But when people ruthlessly state that our country is becoming socialist through higher taxation or the introduction of public programs, but do they not understand that we are already a Socialist Revisionist state? We are a laize fairre capitalist, we are build around governmental tenants so that we can function better as a society (police force, fire department, libraries, roads, public schools) In fact our income tax has been one the lowest rates in our country's history. Why do Americans still follow the doctrine of Mcarthyism, even into the 21st century? (Why is there a modern red scare, or fear of socialist or marxist doctrine in our country?)