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May 24, 2013
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Why Income Inequality Suddenly MattersPosted on Nov 11, 2011By David Sirota A few weeks ago, as the Occupy Wall Street protests were first spreading, something amazing happened: For 10 whole seconds, the local reporter on my TV screen actually talked about the realities of the recession. He even uttered the phrase “economic inequality.” My guess is that you’ve seen something similar on your local affiliate—and that’s no minor event. When even the most local of television journalists are compelled to acknowledge this crushing emergency in a country whose media aggressively promotes American Dream agitprop, it means the Occupy protesters have scored a monumental victory. You can almost imagine a Wall Street CEO turning to an aide and muttering a slightly altered riff off LBJ: “If we’ve lost Ron Burgundy, we’ve lost Middle America.” In response to this stunning turn of events, conservative politicians are retreating to non sequiturs. They seem to think that if they shout the phrase “class warfare” enough, the nation will go back to not caring about the divide between the rich and poor. But something has changed. For most of the post-World War II era, we tolerated relatively high inequality because we envisioned it as a necessary side effect of an exceptional economy that (supposedly) guaranteed opportunities for advancement. As The Wall Street Journal put it, we believed that “it is OK to have ever-greater differences between rich and poor ... as long as (our) children have a good chance of grasping the brass ring.” Advertisement “U.S. family income mobility has decreased over the 1969-2006 time span, and especially since the 1980s,” notes the Fed paper, adding that “a family’s position at (the) end of (the) 2000s was ... more correlated with its start position than was the case 20 years earlier.” Of course, some class mobility still exists. The trouble is that it’s primarily of the downward kind. As the Pew Charitable Trusts reports, roughly a third of those who grew up in the middle class have now fallen below that station in adulthood. This is why, for all the right-wing mythology about “Eurosocialism” snuffing out upward mobility, data from the Organization for Economic Cooperation and Development show that social mobility in uber-capitalist America is actually lower than in most industrialized countries. This is why almost three-quarters of respondents just told The Hill newspaper’s pollsters that income inequality is a problem. This is why my local TV news is suddenly airing pieces on economic inequality between sports, weather and all the “you stay classy” small talk. And this is why, among all the fights over economic policy, the debate about taxes is the most crucial of all. As the Fed noted in a separate report, the federal tax code—which remains vaguely progressive—has been the one proven way to “mitigate income inequality.” But with congressional Republicans gradually flattening federal income tax rates and with already-regressive state tax rates in GOP bastions like Texas, Wyoming, Tennessee, South Dakota and Mississippi, the tax system has lately been preserving or exacerbating existing inequality. The good news is that if we return to the slightly higher tax rates of the Reagan or Clinton eras—i.e., the rates that existed when the economy was doing better—we can begin fixing things. If, though, we keep tax rates the same or make them even more regressive, we’ll be seeing a whole lot more about economic inequality on our local news as the current crisis inevitably reaches an ugly boiling point.
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By IMax, November 15, 2011 at 1:24 pm Link to this comment
Anarcissie,
Let us be blunt. India’s economic reforms from a centrally controlled economy to a market economy lifted MILLIONS of people out of poverty and starvation.
I am not lead to believe that you’re stupid. So I am left with believing you to be dishonest. The subject was never about famine. The subject was that of lifting people out of poverty and the starvation which often comes from impoverishment.
“After it’s independents India attempted something close to what you are thinking of. That model produced horrendous starvation and poverty for multiples of millions of real, living and breathing, human beings. After India introduced market forces (capitalism) into its economy India began growing by leaps and bounds. India’s market forces have lifted tens of millions of people out of starvation and into better homes. - This example, this real working model, works every time it’s tried.”
Starvation. Not famine.
Wikipedia: The 2011 Global Hunger Index (GHI) Report ranked India 15th, amongst leading countries with hunger situation. It also places India amongst the three countries where the GHI between 1996 and 2011 went up from 22.9 to 23.7, while 78 out of the 81 developing countries studied, including Pakistan, Nepal, Bangladesh, Vietnam, Kenya, Nigeria, Myanmar, Uganda, Zimbabwe and Malawi, succeeded in improving hunger condition.[5]
-
Of course you wish to stay away from any and all discussions of India’s economy. Any discussion of India’s economy will prove you thoroughly wrong in roughly half of all your comments on this site.
Report thisBy Anarcissie, November 15, 2011 at 12:07 pm Link to this comment
iMax—I have no desire to discuss the economy of India. I simply pointed out, that in the matter of ‘horrendous starvation’, you didn’t know what you were talking about. Apparently you just made it up. There is no point in discussing things with people who just make things up, because they aren’t interested in truth—only in winning, or conforming to authority, or whatever their hobby is.
oddsox—You wouldn’t see an insatiable appetite for, say, food, as pathological? It certainly has bad consequences for those who suffer from it.
By the way, if it’s at all convenient, I prefer references to text rather than videos, which are generally slow-moving and incomplete (except, of course, in the case of art). One word can be worth a thousand pictures. In the case of Maslow, I know something about his work. It is not above criticism.
Report thisBy IMax, November 15, 2011 at 10:44 am Link to this comment
Anarcissie,
Changing the subject will never work with me. You had attempted to show me how much you know about India and it’s economy by changing the subject to famine statistics as found on Wikipedia.
Reading directly from your source, Wikipedia, what does the below entry say? How does it differ from what I’ve written?
Economy of India
“The independence-era Indian economy was inspired by the economy of the Soviet Union with socialist practices, large public sectors, high import duties and lesser private participation characterizing it, leading to massive inefficiencies and widespread corruption. However, in 1991, India adopted free market principles and liberalized its economy to international trade under the guidance of current Prime Minister Manmohan Singh. Following these strong economic reforms, the country’s economic growth progressed at a rapid pace with very high rates of growth and large increases in the incomes of people.”
India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. The growth was led primarily due to a huge increase in the size of the middle class consumer population, a large workforce comprising skilled and non-skilled workers, improvement in education standards and considerable foreign investments. India is the seventeenth largest exporter and eleventh largest importer in the world. Economic growth rates are projected at around 8% for the financial year 2011-2012.”
- No more games, please.
Report thisBy oddsox, November 15, 2011 at 10:26 am Link to this comment
@Anarcissie you write:
“..humans aren’t all that insatiable…advertising appetites must be provoked. ...insatiability is a sign of disease or mental disorder.”
Visions of Gordon Gecko and Richie Blackmore pop up here.
http://www.youtube.com/watch?v=C5StoAG6qsY
But consider Abraham Maslow—he had it right.
http://en.wikipedia.org/wiki/Maslow’s_hierarchy_of_needs
Your position is central to our basic differences, Anarcissie.
We aren’t sick to want “more” and “better” out of life.
That’s just who we are.
—
Re advertising: I will concede that sometimes supply creates demand, usually when a new product or service emerges.
When that happens, advertising becomes a medium for creating awareness.
But the product or service in question must still stand on it’s own and be worthy of its cost.
Which is why they’re still selling more Volvos than Volts.
Appetites being provoked is what advertising is all about—but the appetites are usually there first.
Report thisBy Anarcissie, November 15, 2011 at 8:38 am Link to this comment
iMax—If famines don’t matter, why did you bring them up? At least, that’s what I took ‘horrendous starvation’ to mean. If you weren’t talking about famine, then what were you talking about?
Report thisBy IMax, November 14, 2011 at 10:21 pm Link to this comment
Anarcissie,
Never make the mistake with me in believing that changing the subject gets you off the hook. That may work with others. Not with me. - Historical famine statistics has no reasonable place in this discussion.
Now wold you like to talk about the Indian or Chinese economies, or not?
Report thisBy Anarcissie, November 14, 2011 at 10:01 pm Link to this comment
iMax—You needn’t look at the Wikipedia article itself. It has a lot of references. In this particular case I think you’ll find it’s accurate enough, but I confess I wasn’t hanging around Gujarat in 1901, etc., so I can’t testify as an eye-witness. You may have to do a little digging—fans of liberalism-capitalism don’t like the fact that massive famines took place in India (and Ireland) under the liberal-capitalist regime of 19th-century imperial Britain, so they tend to obfuscate a bit. For instance, I was a college student before I found out that food was being exported from Ireland during the height of the famine. But—believe what you want. All I can do is give the evidence available to me, which I know is helpless against faith and true belief.
oddsox—Actually, humans aren’t all that insatiable, especially when costs are taken into consideration. Hence all the advertising—appetites must be provoked. I suspect that in most areas, as with the physical appetites, insatiability is a sign of disease or mental disorder.
Report thisBy IMax, November 14, 2011 at 6:28 pm Link to this comment
OddSox, “Insatiability isn’t a tenet of capitalism or stat-ism so much as a part of the human condition.”
-
Absolutely an essential point in every discussion on this topic. Socialism, Communism, -centrally controlled economies- demand humans stop being human so we can all reach utopia on earth.
Ironically every time it’s been attempted in large scale it creates misery and starvation for everyone. Literally billions of people have suffered horribly from such attempts.
India and China are our best examples today of what market driven (free) economies can produce for the poorest amongst us.
Report thisBy IMax, November 14, 2011 at 6:10 pm Link to this comment
Anarcissie,
You’ve never displayed a kindness toward me so I will be only direct in turn.
If you want to make a point while engaging me with that point you’ll have to reference something other than Wiki. I don’t believe it’s possible to have a worthwhile exchange with people who don’t fully understand what Wiki is or how to use it. Please don’t take it personal.
Here is Wikipedia showing, in some detail, precisely what I wrote.
Economy of India
“The independence-era Indian economy was inspired by the economy of the Soviet Union with socialist practices, large public sectors, high import duties and lesser private participation characterizing it, leading to massive inefficiencies and widespread corruption. However, in 1991, India adopted free market principles and liberalized its economy to international trade under the guidance of current Prime Minister Manmohan Singh. Following these strong economic reforms, the country’s economic growth progressed at a rapid pace with very high rates of growth and large increases in the incomes of people.”
India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. The growth was led primarily due to a huge increase in the size of the middle class consumer population, a large workforce comprising skilled and non-skilled workers, improvement in education standards and considerable foreign investments. India is the seventeenth largest exporter and eleventh largest importer in the world. Economic growth rates are projected at around 8% for the financial year 2011-2012.
I’m sorry but famine statistics has nothing to do with this conversation. India’s current projected 8% growth, in today’s economy, is.
You were saying how wrong I was about India and the power of market oriented policies to lift many millions of humans out of the HORRIFIC ‘starvations’ all over the world?
Report thisBy oddsox, November 14, 2011 at 5:53 pm Link to this comment
@Anarcissie, you write:
“...the more one has, the more one wants, and the more one can get.”
Your subject was political power, but it could have been money, sex, real estate or (*yum*) chocolate chip cookies w/walnuts!
Insatiability isn’t a tenet of capitalism or statism so much as a part of the human conditon.
We’re rarely satisfied for long—if it’s good, we always want more.
Over time and overall, this trait has served us well, do you agree?
just me RAMBLIN’ ON:
Now, is War another base trait in human nature? Thomas Hobbes and many others think so.
Being the Pollyanna that I am, my hopeful view is that we can find a suitable substitute: fair and honest competition.
The great 20th Century Philosopher (and football coach) Vince Lombardi, said “men are competitive and the most competitive games draw the most competitive men.”
(and I don’t think he meant to exlude women here, especially from what I’ve overheard from chatty teenagers like my daughter and her friends.)
Competition breeds inequality. Even kids on the pee-wee soccer field know to keep score. If that’s part of human nature, it’s no use fighting.
Where and when we can substitute sports, games, business or trade for war, we will all reap the benefits.
It is the losers who benefit most—a darkened locker room, bruised ego or empty wallet to take the place of graves and hospital beds.
And in the case of the former, the loser of today can try again and be the victor tomorrow.
(Perhaps at another game…)
So, bringing this back to the topic at hand—inequality, of itself, is not necessarily a bad thing—as long as it can be temporary.
Report thisThe reduced class mobility is the most disturbing statistic cited in our host’s column.
By Anarcissie, November 14, 2011 at 1:44 pm Link to this comment
iMax—You wrote, ’... After it’s independents India attempted something close to what you are thinking of. That model produced horrendous starvation and poverty….’ The Wikipedia article I linked, and its many dozens of references, shows that you don’t know what you’re talking about—the truth is more or less the reverse of what you wrote. And if your statement was relevant to the discussion, then my comment on it is also.
Report thisBy IMax, November 14, 2011 at 12:56 pm Link to this comment
Anarcissie,
The subject you raise is for another thread. It has no real bearing here. - I don’t know you well enough to know if you already understand the inappropriateness of your point.
Also, if you cite something other than Wiki I will be glad to study it.
Report thisBy Anarcissie, November 14, 2011 at 11:37 am Link to this comment
Aurelian—success in business does not keep people out of politics, the ruling class, the government. Quite the contrary.
iMax—the last major famine in India was in 1943, long before India’s independence and any political or economic changes deriving from it. During British rule (from the 18th century until 1948) many famines were exacerbated by government laissez-faire in accordance with the ruling British ideology (liberalism and capitalism). (See http://en.wikipedia.org/wiki/Famine_in_India.) Contemporary India may not be as libertarian as you imagine.
Report thisBy Aurelian, November 14, 2011 at 9:38 am Link to this comment
”(T)he worst people—those who desire power over
others, authoritarians—are of course strongly attracted
to government.”
They’re attracted to starting their own businesses far
more often. The pay is better, and the power they
wield over their employees is more pervasive.
As I’ve often said, Dilbert is set in the
Report thisprivate sector for a reason.
By IMax, November 14, 2011 at 5:37 am Link to this comment
Ray,
Are you saying you can think of no viable working model of a centrally controlled economy that actually works?
I can point you toward India and China as terrific examples of what I’m talking about.
After it’s independents India attempted something close to what you are thinking of. That model produced horrendous starvation and poverty for multiples of millions of real, living and breathing, human beings. After India introduced market forces (capitalism) into its economy India began growing by leaps and bounds. India’s market forces have lifted tens of millions of people out of starvation and into better homes. - This example, this real working model, works every time it’s tried.
Report thisBy Anarcissie, November 13, 2011 at 7:16 pm Link to this comment
oddsox—the problem with capitalism, and with the state in general, is that power is generally one of those vicious-circle or positive-feedback processes whereby the more one has, the more one wants, and the more one can get. Moreover, the worst people—those who desire power over others, authoritarians—are of course strongly attracted to government. After particularly disastrous excursions into tyranny, many a people has set up a republic with checks and balances, only to have it slip away through regulatory capture. We are seeing that now in the United States, but it’s an old, old story.
Of course, this defect does not apply only to capitalist states. Attempts to set up centralized socialist states have met with similar fates.
Report thisBy Anarcissie, November 13, 2011 at 7:14 pm Link to this comment
oddsox—the problem with capitalist states, and with the state in general, is that politcal power is generally one of those vicious-circle or positive-feedback processes whereby the more one has, the more one wants, and the more one can get. Moreover, the worst people—those who desire power over others, authoritarians—are of course strongly attracted to government. After particularly disastrous excursions into tyranny, many a people has set up a republic with checks and balances, only to have it slip away through regulatory capture. We are seeing that now in the United States, but it’s an old, old story.
Of course, this defect does not apply only to capitalist states. Attempts to set up centralized socialist states have met with similar fates.
Report thisBy RayLan, November 13, 2011 at 6:24 pm Link to this comment
Imax
Report this“Ray, if you can lend us some examples of a centrally controlled economy which has grown wealth for everyone I would like to study those examples.”
Why would i give examples that contradict my claim that capitalism creates inequity? First of all there are no examples of unregulated capitalism - the virulent imbalance of wealth that unregulated capitalism must essentially cause is always curtailed with regulation viz. The break up of monopolies
see Rockerfellers Standard Oil company.
Without some form of regulation capitalism self-destructs - like the proverbial puffed up toad
But we are seeing an near self-destruct right now, precisely because the unregualted chicanery of financial corporation.s
By oddsox, November 13, 2011 at 6:10 pm Link to this comment
@Anarcissie:
“...and political power is a zero-sum game. You can’t acquire power over others without depriving them of power over themselves.”
That’s why we have checks and balances.
And the rules and regs you refer to later in your post.
If you mean absolute power corrupts absolutely, than we agree.
But good government isn’t about power.
Report thisIt works best when common-sense compromises are made & all sides gain.
Win-win scenarios like the examples I named later in the same post.
By Anarcissie, November 13, 2011 at 5:55 pm Link to this comment
One problem with this view of things is that the control of the means of production by capitalists has serious political consequences, and political power is a zero-sum game. You can’t acquire power over others without depriving them of power over themselves.
I suppose I have to add that, above the level of flea markets and yard sales, there are no free markets. Some are looser than others, but they all have rules and are subject to manipulation and external controls. However, we can mitigate this problem by pretending the markets are free. The other problem is not so easily solved.
Report thisBy oddsox, November 13, 2011 at 4:42 pm Link to this comment
@not me
First, it’s an honor to have a namesake in the blogosphere.
If you’re “not OddSox,” does that make you a matched pair?
Next, your stats on income and wealth inequality sound about right & I am aware of them.
The best and most detailed article I’ve read on the topic was Timothy Noah’s 10-part essay that appeared two summers ago in Slate.
http://www.slate.com/articles/news_and_politics/the_great_divergence/features/2010/the_united_states_of_inequality/introducing_the_great_divergence.html
It makes many of your points for you.
Robert Reich’s book Aftershock, is another good source.
—
@RayLan: most critics of Capitalism work from the false premise that it is a “zero-sum game.”
Not so.
Done right, free markets with fair competition are win-win propositions, both on micro- and macro- economic levels.
Of course, members of the far-right often assume the same, false “zero-sum game” premise when it comes to funding public works. Examples: Quality schools, public roads & bridges, dams the like. Tax money well-spent (not wasted!) produces good citizens, increases commerce and energy—good win-win investments that benefit all income groups.
—
@Outraged:
Thanks for sharing, but your quote from Rolling Stone didn’t refute my post stating which taxes are progressive (income, estate, sales taxes) and which are regressive (payroll taxes).
The income tax was progressive before the Bush tax cuts and remains so afterwards. The effects of raising or lowing tax rates is a separate matter.
My belief is that taxes should be raised and lowered in order to raise revenues for funding necessary government functions, not to create “fairness.”
I’m with you and Tim Dickinson (your 1st link) on closing corporate tax loopholes & subsidies along with reducing overall corporate rates) as means to simplifying the tax code and raising overall revenues.
“As people disengage from the political process, right-wing conservatives fill the vacuum and get their favored politicians elected.”
—Charles M. Kelly, Class War in America (your 2nd link)
What nonsense—talk about a false major premise!
How would Kelly explain left-wing progressive/liberal being elected in a race with low voter turnout?
What I read of his book is chock-full with rhetoric that reflects his inherent biases. Reminded me of Glenn Beck, but from the opposite end of the spectrum, of course.
Again, see Tim Noah’s piece, which serves many of the same arguments on wealth and income, but without the spins and name-calling.
Report thisBy moonraven, November 13, 2011 at 1:10 pm Link to this comment
INTIMATIONS OF THE NEXT WORLD
20.
“Everybody knows that our cities
were built to be destroyed.”
Caetano Veloso, “Maria Bethania”
San Francisco and
Lisbon—destroyed by earthquakes;
Hiroshima and
Nagasaki—blown up by
Fat Man and Little Boy bombs;
Fukushima upped
the stakes: earthquakes, tsunamis,
leaking reactors;
and for a few more encores
Los Angeles is always
poised for a shakedown.
Let me guess your preference:
fire, ice, nuclear
winter—all so compelling
that it’s difficult to choose,
but someone will choose
for you if you hesitate—
so not to worry.
Israel threatens to bomb
nuclear facilities
in Iran and strike
up global conflagration—
sweet distraction from
economic collapse, one-
upping masturbating to
the firebombing of
Dresden, and with so much flair.
Tell me the goose of
“western civilization”
is not cooked, and I’ll sell you
my last oceanfront
lot in Rapid City, South
Dakota—complete
with pristine sand and a drop-
dead view of Mount Rushmore.
Not too far away,
Report thiswinter is coming again
to Wounded Knee Creek,
every snowflake an ash
from a smoldering city.
By REDHORSE, November 13, 2011 at 1:00 pm Link to this comment
The looting of tax dollars without services rendered is the con. Investment in perpetual war is the means and the machine. An insane thug is just that. Absolute thinking is a trap. Direct action is the only way forward. Snivel at your own peril.
Report thisBy IMax, November 13, 2011 at 9:04 am Link to this comment
RayLan, - “Capitalism thrives ironically on inequity.”
Ray, if you can lend us some examples of a centrally controlled economy which has grown wealth for everyone I would like to study those examples.
You may be aware of something I have yet to see myself.
Report thisBy RayLan, November 13, 2011 at 6:52 am Link to this comment
Taxation equalization is only an aspirin where major surgery is required - Capitalism thrives ironically on inequity - the point at which it is a zero sum game - the lotto of scarcity which is at the root of the very concept of economy and how capitalism grants windfalls for the few and poverty for the many - kind of the situation at the moment - of course the Right wants to continue the delusion that it is cause not be capitalism but by regulating capitalism - sort of like saying obesity isn’t due to unrestricted eating but to too much control -
Report thisLOL
By not OddSox, November 12, 2011 at 5:44 pm Link to this comment
(Unregistered commenter)
Personally, I welcome the media attention OWS has brought to income inequality in the U.S., which is the direct result of anti-New Deal policies over the past few
decades that have effectively locked folks into their current social ranking or greased the skids to the next lower one.
But income inequality is actually worse than is commonly reported. If you drill down and look at differences by race/ethnicity, you’ll find that the official poverty
rate is 2 - 2.7 times higher for Latinos and Blacks than it is for Whites*. And with
poverty come all the other social undesirables, including crime, disease, and lost
potential.
I hope the dialogue broadens further to recognize not just the existence of
inequalities, but their impacts and what to do about them if we truly seek to be
competitive in the global marketplace—not to mention living up to our ideals.
*See http://statehealthfacts.org/comparebar.jsp?ind=14&cat=1
Report thisBy Outraged, November 12, 2011 at 1:46 pm Link to this comment
Re: oddsox
Your comment: “He finds them lacking in under our
current code, that’s where we disagree.”
Regarding progressive income taxes, your comment
flies in the face of reality.
From Rolling Stone:
“In the end, Cheney’s voice was the only one that
mattered. In April 2003, when the bill reached the
floor, the Senate deadlocked 50-50. The vice
president cast the deciding “aye” that moved the tax
cut into law. The benefits were even more tilted to
the rich than the first Bush tax cuts. When fully
phased in, 53 percent of the new cuts went to the top
one percent. Those making $10 million or more
pocketed an average of $1 million a year – twice the
haul they made from the earlier cuts, and every cent
of it borrowed. “It was a deficit-financed tax cut,”
concedes Hubbard, who chaired Bush’s Council of
Economic Advisers.
The deal privileged gambling on stocks over working
for a living: The tax rate the richest pay on their
long-term capital gains was slashed by 25 percent,
while their rate on dividends fell by almost 60
percent. The move not only fueled speculation of Wall
Street, it further widened the considerable gap
between rich and poor. “It was a very destructive
combination to have a national economic policy that
stimulated debt-financed capital gains and then taxed
the windfall at the lowest rate imaginable,” says
Stockman. “That contributed, clearly, to the growing
imbalance in household income and wealth.”
But Republicans didn’t stop there.”
http://www.rollingstone.com/politics/news/how-the-gop-became-the-party-of-the-rich-20111109?print=true
This is also a great link, check it out:
Report thishttp://www.kellysite.net/10cw.htm
By JniBGood, November 12, 2011 at 1:43 pm Link to this comment
(Unregistered commenter)
Folks, come on, really! The game is rigged. It does not matter who you vote for under the current system. Democrats and Republicans are equally at fault and they represent by their actions the interests of the wealthy elite.
When you vote in a rigged game where the outcome does not matter because the winner is totally loyal to the 1% who funded them and they identify with them, it is a wasted vote.
The only vote that would be valuable is one that offered a third choice. A genuine third party representative of the 99%.
Anything less, anything else, is a wasted vote. There is no point in voting in a rigged election. If you walk into a rigged casino [wall street] and put your money down knowing the game is rigged does that make sense? No!
So, how does voting in a rigged election make any more sense to you?
Common sense and courage along with critical thinking is so lacking in America that it is no surprise we are being led down the path to fascism.
Report thisBy oddsox, November 12, 2011 at 8:52 am Link to this comment
@Anarcissie, my favorite anarchist:
“The idea that a modest change in tax policy is going to enable ‘us’ to begin fixing things is delusional.”
The current 2% redux in employee FICA taxes is evidentiary to your point.
As posted earlier, we need something more qualitatively and need reforms in campaign finance and banking as well.
But if the goal is to increase overall tax revenues (as opposed to social engineering) then a return to the Clinton-era top end tax rate (39.5%) will probably help.
Report thisBy oddsox, November 12, 2011 at 8:42 am Link to this comment
@Imax: Damn fine post, so much so that quibbling over a few numbers would dampen the spirit, so I won’t go there.
The best parts, if I may:
Report this—close the loopholes, keep deductions few and simple. Lower tax rates, bring capital back home.
—keep the free market economy. Capitalism Si, Cronyism No!
—Voting is more important than who wins. Just Vote, Baby!
—God Bless our Vets!
By oddsox, November 12, 2011 at 8:35 am Link to this comment
on Progressive Taxes:
I agree with the Founder of this thread, David Sirota, when he writes of the need for Progressive taxes.
He finds them lacking in under our current code, that’s where we disagree.
Let’s examine: Income taxes. You may agree w/Sirota that the rich should pay more, but right now the top 10% pay 70% of all income tax revenues and nearly 50% pay nothing. Plenty progressive there.
Estate taxes: With a $5 million exemption, most Americans will pay no inheritance tax. The current flat 35% applies to all amounts over $5M so the overall percentage rises as total estate value increases:
(eg: $10M = 17.5%, $20M = 26.25%, $50M = $31.5%)
Again, you might want the rich to pay still more, but it’s progressive as-is.
Sales Taxes: Most states exempt groceries, rents, utilities & meds from sales taxes. These are the things upon which the poor spend most.
That makes sales taxes progressive, too.
Payroll taxes: here are the true regressive taxes, funny that Sirota does not mention them.
Both employer and employee pay on the first dollar, but after $106,900 no more FICA taxes are paid. Current rate is 7.65% for employer, 5.65% for employee, but the rate may return to 7.65% in 2012.
http://401k-employee-benefits.com/3396-fica-limits-2012
As for the Medicare tax, again, the first dollar is taxed and there is no cap—everyone pays forever.
Payroll taxes, taxes on labor, are the most regressive taxes and present obstacles to hiring.
Report thisThey should be eliminated in favor of a consumption tax that funds Social Security and Medicare.
By oddsox, November 12, 2011 at 8:10 am Link to this comment
@Ian:
We can agree that sarcasm/parody/satire on certain topics is in poor taste. Gabby Giffords or the Penn State scandal come to mind.
But you’re an especially sensitive individual.
So, for your own sake, you may want to avert your gaze from any of Mr. Fish’s work, especially his latest effort, Red Menace.
http://www.youtube.com/watch?v=jTW0y6kazWM
Report thisBy todzzgod, November 11, 2011 at 7:18 pm Link to this comment
“I expect an invasion of Iran if a Republican is elected. “Bomb, bomb, bomb bomb Iran!” Hey Raptor. Isnt that Hillary Clinton beating the war drums as Sec. o State? We are going to war with Iran no matter who gets elected.
Report thisBy Textynn, November 11, 2011 at 6:35 pm Link to this comment
(Unregistered commenter)
The tax problem is a big problem but considerably less than the problem of the OnePercent running this country.
Taxes are a pale worry when 400 families control the levers of the entire economic system and control the country’s wealth and resources, which then allow them to socialize their loses and privatize the profits while simultaneously growing so wealthy that they control and monopolize every business in the land/planet.
Nothing will change until we throw the people in office out. Both parties… and demand clean elections. Until then, prepare to suffer in poverty, without health care, working to fund endless for profit wars and bailouts.
Report thisBy IMax, November 11, 2011 at 3:57 pm Link to this comment
While it’s never popular to suggest, the U.S. needs to lower the corporate tax rate while raising personal income tax for everyone earning $500.000 and up ($350,000 jointly). Exceptions kept simple and at a minimum. - Charitable, home improvement, small business and incentives to save, for example.
Lowering the corporate tax rate will profit all businesses big and small. This will raise employment and help fund the Treasury. That single move will attract more business toward the U.S. and not away (jobs). - Attracting jobs is the point. Not repelling investment in the U.S..
Those making over $500,000 can and will afford the rate hike while adding to the treasury. What we can’t do is tax to the point where the wealthier stop buying boats, the 2nd and 3rd car, going on vacation, hire their precious lawn services or opt-out of paying for those dance classes (jobs).
Remain a market economy. It’s proven the best way to pull people out of poverty. It has worked everywhere it’s tried. Hundreds of millions of people in India and China, for example, eat better and live in better homes due to moving toward market economies.
And for goodness sake vote! It’s deplorable that less than 50% of Americans vote in the general. The vote remains a voice in the United States. A voice which too many take for granted. Particularly considering the millions who died to give Americans the privilege. A privilege that, even today, most in the world don’t enjoy.
Go Vets!
Report thisBy Ian, November 11, 2011 at 3:10 pm Link to this comment
(Unregistered commenter)
@ Oddsox
I don’t find Brook’s piece appalling because I can’t
Report thisappreciate sarcasm. I find it appalling because it
serves to trivialize the very real and damaging
social/economic injustice that affects so many of our
fellow citizens. There’s nothing witty in being
sarcastic about others’ suffering.
By Anarcissie, November 11, 2011 at 1:44 pm Link to this comment
So the question then arises: why don’t the people elect representatives who will deliver on these security interests?
Report thisBy scotttpot, November 11, 2011 at 1:18 pm Link to this comment
Railing against income inequality is easily dismissed by the 1% as the lazy have
Report thisnots being envious of the hard working haves. . The debate needs to be framed
over security inequality. Basic security is what the majority of people don*t have .
If you have a job in America ,your health care is likely tied to that job.People are
insecure about education opportunities and the threats to the social security
program. Transportation costs create another insecurity.The bottom 20% spent
9% of their income on gasoline over the last 10 years.The 1% don*t care about the fear and insecurity they create for the rest of the world.
By Anarcissie, November 11, 2011 at 12:52 pm Link to this comment
Actually, I think Brooks uncharacteristically raises an interesting sociological point. While sarcasm is a blunt instrument and is seldom wielded as tellingly as the wielders believe, there is something to be said for pointing out the curious ambivalence of Americans about inequality even if it is not done very accurately. Another example is in a current article on TruthDig, where Oliver Stone tells a revolt against power to ‘grab the power’. Unfortunately this is exactly what many revolts turn out to be about, although I have better hopes for OWS.
In short, calling Brooks’s article ‘a piece of shit’ does not refute it very well.
Report thisBy oddsox, November 11, 2011 at 12:44 pm Link to this comment
@mrfreeze:
Ah, yes-s-s-s-s-s.
So you, like Ian and at least 200 other NY Times readers don’t appreciate Brook’s sarcasm.
(I’m assuming the “From” is a typo?)
Such is the risk Brooks takes when he pokes fun at current events using a media source whose readership is not in accord politically…
Readers/listeners/watchers take the risks when trying to expand their horizons.
Report thisThe risk worth taking, IMHO.
By tocynic, November 11, 2011 at 12:30 pm Link to this comment
I think it’s interesting how ‘american exceptionalism’ regularly comes to the fore in discussions like this. But when you ask people what they think it means, once they see past the creation of plastic trinkets crap, they converge on success in WWII, or the Space Race, or Research and Engineering - virtually all of which is dominated or supported by federal funds.
Report thisBy objective observer, November 11, 2011 at 12:23 pm Link to this comment
(Unregistered commenter)
one thing i’ve noticed in the last 10-15 years is that the younger 20 somethings want NOW what their parents and others older than them took the time to AQUIRE. no fast credit, no patience, NOW. the big screen TVs, the ipods/pads, cars, big houses, vacations, etc. their parents and those older AQUIRED these things over time.
of course, there are those of all ages who WANT the newest gizmo, using the credit card instead of actually saving for it, or heaven forbid, deciding maybe, they don’t need it.
Report thisBy mrfreeze, November 11, 2011 at 11:13 am Link to this comment
oddsox - I just finished reading the David (I’m a white-privileged, never-worked-an-honest-day-in-my-life-never-met-an-actual-poor-person-in-my-life) From’s piece-of-shit article. Sometimes I despair that I live in a country with sophists who can spin their bull-shit and fellow-citizens who believe the bs. I actually grew up in UT where I listened to this sort of crap from the mormons every minute of every day….....the never-ending “american exceptionalism” notion that “inequality” is a lifestyle choice…............
One nice thing is to read the commentary that follows From’s sophist-vomit piece.
Report thisBy oddsox, November 11, 2011 at 11:01 am Link to this comment
here’s the Brooks column to which Ian refers:
http://www.nytimes.com/2011/11/11/opinion/the-inequality-map.html?_r=1&ref=columnists
Has sarcasm inequality become unacceptable?
Report thisFrom say, Rachel Maddow, is cause for knee-slapping—and she IS brilliant at it!
But from the Right, sarcasm is mean and insensitive.
And “appalling,” eh, Ian?
By mrfreeze, November 11, 2011 at 10:52 am Link to this comment
To Ian - How can you subject yourself to David Brooks?
To Big B - You couldn’t be more correct.
To Anarcissie - Remember, cut taxes on the “job creators” and eliminate “ALL” regulations is the solution to all of the world’s problems…......how dare you challenge the “conventional wisdom” of the American Dream????
To Rodney - I think your comment is great….but I’m also afraid that the “unpatriotic” ones are the 99% who continue to either a) not vote or, b) continue to re-elect the very wolves who support the 1%. Our Republic needs citizens who are willing to stand up to the “owners” and special interests.
Report thisBy Anarcissie, November 11, 2011 at 10:32 am Link to this comment
The idea that a modest change in tax policy is going to enable ‘us’ to begin fixing things is delusional.
Report thisBy raptor, November 11, 2011 at 10:21 am Link to this comment
(Unregistered commenter)
When the blithering idiot was re-elected in 2004, The
Report thisGuardian had a headline that read “How could millions
of Americans be so stupid?” Well, they still are. If these
same millions vote for the crazies this country will
become more insane than it is now. I expect an invasion
of Iran if a Republican is elected. “Bomb, bomb, bomb
bomb Iran!”
By Ian, November 11, 2011 at 7:28 am Link to this comment
(Unregistered commenter)
Smart post. Thankfully, I read this post immediately
Report thisafter reading David Brook’s appalling column in
today’s (11/11/11) NY Times.
By Rodney, November 11, 2011 at 6:59 am Link to this comment
(Unregistered commenter)
The most unpatriotic people are the 1%. Their greed
Report thisshow the slave owner mentality of which most of the
original wealth in this country was accumulated. They
have taken us back not to actual slavery but the
principle of the very rich and sharecropper who has
little or own nothing at all. We are all indenture
servants. They own the political system. They own the
judicial system. And the definitely own the banking
and financial system. Their children do not serve in
the military. The scary part is is that some of them
have so much wealth like Mitt Romney have so much
wealth that they are trying to but the Presidency of
the United States to ensure that the status quo stays
the same. They have brilliantly used division like
affirmative action illegal immigration abortion gun
god and gays to hold their racist and capitalistic
grip over all Americans. Their children don’t serve
in the military,and don’t use the public schools.
They have very little use for the backbone of this
country which are the teacher’s firemen and police
officers as they hire private security and educate
their children in private schools and have alarms and
sprinkler systems in their homes. They have for the
most part tried to destroy the very backbone workers
of America just so they won’t have to pay taxes and
in most cases their percentage of taxes are lower
than most Americans. Even with all of that power they
still want more and refuse to pay more in order to
maintain their lavish lifestyle on the backs of
middle class America. They know it will eventually
come to an end. The question is will there be a
middle class left before it ends?
By Big B, November 11, 2011 at 5:53 am Link to this comment
The american middle class had it good for about 40 years. For the last 20 they have been working two jobs and borrowing money like broke gamblers in a vain attempt to maintain their lifestyle and their piece of the american dream. They are just starting to wake up to the fact that they cannot eat or live in the idea of “american exceptionalism”
I have always said that americans had it too good for too long, and that it might take awhile for us to realize that our lifesyles are being taken away by our top 1% for the sake of more profit and the third world. We are just begining to stir.
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