As a student of politics, sometimes I just have to sit back in awe at the right's propaganda machine. Joe Goebbels and Baghdad Bob are children compared to these guys.
A particularly impressive con job the right has pulled is in the issue of taxes and income redistribution.
The right has convinced millions that the wealthy need tax breaks and to pay for them we'll cut taxes. Anything else to them is commie pinko wealth redistribution. Of course it isn't but the left either can't come up with any cool things to call the right's programs. What the progressive tax system does is it makes the people that benefit the most from our system contribute the most to it's operation. But to some deluded fool watching Glen Beck, the words "commie" and "socialist" resonate far more than "benefit" and "fair."
But what the right has really succeed in doing with this Reaganomics bullshit is to REDISTRIBUTE a good percentage of the tax burden to the poor and middle class without them even knowing they were being had.
Income taxes will never be lowered enough for people to actually realize a difference in their lives. Even the wealthiest among us, if one of them gets a tax cut of a million dollars it won't make any difference in how he lives. But because of these tax cuts, revenue has to be replaced. And guess who makes it up. The poor and middle class. The income tax is shifted to other taxes. Like alcohol. Big tax on soda and candy now. Fees go up every year for licences and other government stuff. Park fees go up. Cell phones get the hell taxed out of them. Internet access is taxed. There are a million other things that are taxed because the right has successfully shifted the burden from the wealthy to the poor and middle class.
A great irony of this shifting of the burden is that when a wealthy guy decides to buy a boat or vacation home with the tax money he's saved, the bastard will demand a tax break on them.
20 comments:
It is like the old saying " they are nickle and dimeing me to death."
It is part of capitalism, they just forgot to tell the masses.
It is a system built on faith, trust, debt, and excessive usury.
It is a system that prints fiat money out of thin air.
It is a taxation ponzi scheme.
IT is based on feeding the elite, and keeping the masses in servitude.
Taxes should benefit the masses that contribute with their blood sweat and tears. Not the elite that use, abuse, and refuse the masses.
With a little help from my big brother TAO, I came to the realization that supply side Reaganomics was a giant ponzi scheme RZ. The few at the top, the wealthiest, get all the benefit of the tax cuts while the country as a whole goes deeper and deeper in the hole. And like the WAll St. banks, The United States is too big to fail. The debt continues to grow but we can't get out of the scheme and the rich get richer. The poor and middle class' burden grows each day.
“He who controls others may be powerful, but he who has mastered himself is mightier still”
The U.S.A. is not too big to fail. We are being realigned, along with the rest of the world. As we enter into A NEW ERA we will have to adapt, and evolve. The ones who do not will be left behind. We have been programmed to live in an illusion. That era is about to end. The reset that is coming will be global, not national. This is the first time that we can truly say, the planet depends on it.
As a progressive leftie, I have always thought of the right's programs as POGROMS against the poor and middle class. They are master liars who brainwash people (or try to) into believing that higher taxes will automatically lead to higher prices and job cuts. Since the Reagan era, the right has gradually installed a most regressive system, and calls anyone advocating a reversal of their tilted policy a socialist. Well, Thomas Jefferson and Abraham Lincoln weren't socialists, and both believed that those who have profited most from our system should pay a proportionately higher proportion of maintaining that system. I'm with those men of vision, not the short-sighted, self-centered far-right tax haters of today. They want to take and never give, or give as little as possible.
It's true that taxes were twice as high before Reagan. It's also true that we were paying our bills.
As soon as Reagan tax cuts took effect, we ended his administration with a 4-1/2 trillion dollar debt.
When the Bush tax cuts took effect, we ended his administration with another 5-1/2 trillion dollar debt.
Between 1948-1980 we built the greatest middle class and living standards in the World, while paying off our WW II debt. Do high tax rates kill economic growth?
It's not really surprising that Americans want something, but don't want to pay higher taxes for it.
It's a little surprising that Americans have been duped into swallowing Republicans "Voodoo Economics" or "Trickle Down Economics."
If an employer is given a tax cut, will he hire new employees? Probably not. He will invest in technology that will produce just as much, with fewer employees (payroll).
If rich people get a tax cut, will they invest that money into new business? Obviously not, or business would be growing. They are just packing that money away.
Just as the banks Americans bailed out are making their companies financially healthy, but are not loaning that money out to spur buying and business growth in America.
we have to pay as we go, and we need responsible leaders to explain that to us. That is surprising.
Anything else to them is commie pinko wealth redistribution.
Actually, when health-insurance companies rake in premiums from their customers and then reject claims on technicalities so they can afford to pay executives seven-figure salaries, that's "wealth redistribution".
Many on Wall Street owe their wealth to unethical decisions which endangered the whole economy and forced the government to spend hundreds of billions of dollars to re-stabilize the system.
Tax rates on high incomes are still much lower here than in most advanced countries, and lower than they were under Reagan.
The money has to come from somewhere. Raising taxes on the richest would be the least unfair way to get it.
The S&P 500 is made up of the 500 largest companies in the USA. 253 of the companies in the S&P 500 now pay more in foreign taxes than they do in US taxes.
When you add the payroll taxes that an individual pays to the income tax that they pay, the tax rate for individuals is MORE than what corporations pay.
Corporate profits have gone through the roof over the last 29 years and median household income has DROPPED!
Consumer spending makes up 70% of all economic activity and 95% of consumers derive their income from wages...
Add it all up and you realize what is wrong with our economy.
Wall Street derives their income from selling debt and investments, and the more they can churn investments the more money they make, but by churning investments you are no longer investing for the long term but rather you are speculating.
Speculation creates assets bubbles.
Asset bubbles always implode and are destructive.
When you have the highest concentration of wealth in the hands of the few you end up with a lot of money chasing fewer and fewer investment opportunities...and more asset bubbles.
But of course by acknowledging this all the crazies on the right have to yell is "SOCIALIST" and everyone quits listening.
...and our economic situation gets worse.
Look at the big three automakers...the only one that did not need a bailout was Ford! Why? Because Ford has a large block of stock owned by the Ford Family and not a bunch of speculating investors.
Even Ayn Rand would be appalled at the logic of the right nowadays...
Yet we continue to reinforce the stupidity. While we have the largest military in the world and the right goes on and on about national security they have in fact made us less secure by whoring out our economy through free markets, lower taxes, and increased government and personal debt...
It is just stupid, drunk ass stupid.
Wall Street and supply side economics has done the same thing to our national economy that Wall Mart has done to our local economies...
Oh, we got cheaper consumer goods but we also got less means by which to pay for what we consume and more debt that we are obligated to pay now and forever in the future.
If it happened that the current tax code was eliminated and in its place, a loop hole free, deduction free system replace it, would that end the socialism for the rich and capitalism for the poor system we have now?
My inner cynic says there will always be the scammers and scumbags among us Holte. It might work but no doubt the right wing propaganda machine would call it socialism.
Well, lets look at our basic system now:
If you get paid wages it is up to your employer to provide you with a W-2 and that documents all your income.
That is the basis of your taxes and your social security. There is no benefit to your employer to lie about the information on your W-2 because they benefit from reporting the data and the penalties of not reporting are too high.
1099's are a whole different story....maybe if companies who issue 1099's had to collect taxes from them that might help.
If you do not rely on wages for your income you have all sorts of ways to skirt from paying taxes.
Then you have the bigger issue of if you cleaned up the system today in regards to taxation you would then institutionalize the wealth discrepency that exists.
I think the government should go with a national sales tax on all internet sales.
Maybe even a value added tax...
Capitalism has created more wealth and improved the lives of more people than any prior system. This is undisputed. Unless of course one is employing the powers of selective observation.
It is also true that the only thing that produces wealth is the production of goods that are needed by business and people to improve societal living conditions.
It is also true that those who take the greatest risk, the entrepreneur and businessmen,those who create jobs for those with more risk aversion have the right to a greater reward as result of there efforts and risk. They also deserve to fail when they run their business poorly.
While taxes remain a necessary evil (taxes confiscate at the point of a club peoples earned security) progressiveness tax is unfair and a fraud. the proverbial "class warfare" rallying cry.
Taxes, based on consumption are ultimately more fair. Set the national income tax rate on earned income at 2-3% with no loopholes so a post card size document is all that is needed. set business tax rates that encourage U.S. business to stay rather than going offshore.
Then establish a national sales tax based on consumption. The more you can afford to consume the more you pay in consumption taxes. This was you can really soak the super wealthy that consume much more than is needed to live comfortably.
What this nation needs is: 1) reduction in expenditures at the federal level. 2) Significant measures to increase individual incentive to save. 3)Regulation that prohibits banking and lending institutions to charge interest rates that during prior eras would be considered loan sharking. We now have legalized loan sharks. 4) Get the special interest and lobbyist the hell out of Washington for good. 5) Begin the incredibly daunting task of rebuilding our manufacturing base. As much as I hate to admit it this one will take a sensible national policy to get it started. It is in our national interest to do this. 6) Stop subsidizing failure with tax payer dollars. 7) Arrive at a bi partisan plan to improve our already best in the world health care so it is available to more of our people. Swiss Style Plan anyone?
The alternative/ Continue to fight the same class warfare partisan battles with our heads in the proverbial sand and deed more and more of America to foreign powers through crushing debt the rest of the world will only be to pleased to finance until they call in the debt after they no longer need us.
Enough ranting, it's what got us into the frigging mess in the first place. And there is much blame to spread around. Sometimes history can provide great lessons. To bad America is once again not listening to the voices of past reason.
Rational Nation,
I would be the last person to deny the greatness of capitalism and what it can and what is has achieved. BUT, I have to also acknowledge that within capitalism is also the seeds for its own demise.
Any TRUE entrepreneur and or businessmen realizes that they satisfy a DEMAND more than they CREATE jobs...
DEMAND or consumers CREATE jobs through their purchases.
Any TRUE entrepreneur and or businessman realizes that he is not superior to consumers, workers, or his competitor and that everyday he could fail.
That is what AYN RAND was trying to get across...
Sadly, we have some how turned it around into some sort of idea that INVESTORS through loaning of money through buying of stock are the linchpin of capitalism, we have turned Wall Street and banks into the centerpiece of our capitalistic system...
It is not government and or the tax structure that should be used to reward and or punish the taking of risk...
But that is what we have done with supply side economics; we have rewarded borrowing and spending rather than savings. We have rewarded obscene risk taking...
We have destroyed capitalism and rewarded speculation rather than growth, greed rather than risk taking, and confused the entrepreneurism with scams...
Those who propose to support capitalism the most are the ones who have ran it into the ground...
I am following this thread with absolutely nothing to add except to say thank you for the intelligent, enlightening debate. I'm not real up on economics and how all the moving parts work, but I'm learning here.
The question needs to be asked. Are we discussing capitalism then? Or now?
The form of so called capitalism that we have now, is ruled by the international banking cartels, the globalized corps, the oligarchs, and our bought and paid for political "leaders". This failed system is protected internationally by our military, and our foreign policy. It is and has been for some time been based on fiat money supplies that are printed out of thin air. It is an illusion that we are living. It is not based on wealth, or the well being of its society. It is based on debt, and excessive usury. Some would call this self administered serfdom. lol. There is nothing wrong with taxes. I agree that we should have a flat based tax, or a plain consumption tax. NO LOOP HOLES. Lawyers for the uber elite and the globalized corps. have been writing the tax laws. The tax base is existing on a foundation of quick sand. This will not last.
If capitalism only works/serves a minority of the people, it is a failure.
It's fine to tax the rich more than the less rich, but the rich cannot pay for everything.
Only the great numbers of people (middle class) can generate enough tax income to pay the bills of the federal government.
Growth in the economy produces more tax revenue, and we know tax cuts do not produce enough economic growth.
Since we have developed ourselves to mainly a consumer nation, then we must consume to ensure economic growth.
It's a non win type of economy, that cannot balance trade, feed new business investment, or raise individual wealth.
Consumerism can generate economic growth, but only if we put it all on credit, which is bankrupting both individuals and government.
We have to balance the buy/sell ratio. We need to get back to making products of all kinds, not just big ticket items.
High finance is just that, and has never produced anything but occasional downturns in the economy when real evaluation meets the over evaluation of high finance practices.
OK, so high finance has made people rich, but it does so at the expense of distorting real capitalism and creating an unhealthy financial situation and economy.
Price competition is over rated for driving growth. Offering more, better, and diverse products will generate better results for economic growth, than simple (usually small) price differences.
How far will you drive out of your way to pay a one or two cent difference in a gallon of gas? But if you know your car actually runs better on a specific brand of gas, you will probably drive wherever you have to.
Buying American made products is protectionism, and we need to protect ourselves. Our trade imbalance has been to high for decades.
The only policy the GOP has implemented successfully in the last twenty years is Mo Millionaire Left Behind.
TAO - Well said. Your position and mine are not that far removed from one another.
Careful though, your business acumen is showing. :-)
Rational Nation...
I am a flaming radical capitalist!
I make no apologies for that and I make no claims of being objective...
I know what works and I know what we currently have is NOT working and it is entrapping all of us in corporate feudalism...
I hate to throw piss on the campfire here, but we don't have a capitalistic system. We are a regulated economy that has allowed our economy to be slashed and regulated to the point that it barely resembles anything capitalistic and is dangerously close to being a command economy.
We have run up a debt that is staggering because we refuse to make hard choices and say that government is spending on things that it really isn't designed to do.
A Fair Tax would probably be the fairest solution to all. The best solution would be to allow the entrepreneurs to sink or swim on their own and stop making choices about who will sink and who will swim.
Government is out of its league trying to spend on social engineering. When government sticks its clumsy hands into the economy it does nothing but gums up the works.
For example, I seem to remember a luxury tax on yachts and such. Good if you hate rich people. Not so good if you make people with money spend it elsewhere. When people don't buy goods the people who make the goods suffer.
Just a thought.
Good day sir.
Wow, there are quite a few insightful commentors here. "Truth Shall Rule" seems to be the place where all the smart bloggers congregate. Rational Nation, the wealthy can only consume so much. And as you know, they pay less tax on the money they make from investing.
I'm against your plan which is highly regressive because poor and middle class people spend a higher percentage of their income on consumption. Progressiveness taxation is neither unfair or a fraud. I agree with Jack Jodell's statement, "those who have profited most from our system should pay a proportionately higher proportion of maintaining that system".
FYI, while I'm not hopeful that anyone will be interested, I've written several similarly-themed posts for my blog, including, A Day to Honor President Jimmy Carter (11/10/2009), Faking Fiscal Conservatism (11/01/2009), and Reagan Indoctrinated School Children (09/06/2009).
Comments, which are a rarity on my blog, are welcome whether you agree or disagree.
Post a Comment