Post by Nate"Whether measured by wages, income or wealth, for 25 years the share of the
privileged has increased, and everyone else (a roughly 80% majority) has
become relatively worse off." - Juliet Schor, Harvard University
We can look at George A. Akerlof who won the Nobel Prize in economics. He's
from the University of California, and here's what he said about the Bush
tax plan.
"What we have here is a form of looting .
Yeah, government looting of individual bank accounts through confiscatory
tax policies.
Post by NateThe rich don't need the money and are a lot less likely to spend it
So what? It is THEIR money, not yours, not mine, not the government's.
Just who is Akerlof to say how much money is "enough" for one person?
Post by Nate- they will primarily increase their savings.
Banks do not just hide their money under a mattress. You put
money into your savings account and the bank is gonna go off
and invest it to make money for themselves. Rich people who
put millions into the bank provide large sums for the banks
to invest, if the rich people themselves do not directly invest.
And that assumes the rich folks aren't saving through various
investment vehicles, like stocks or bonds, which put money into
the economy.
And this guy is a nobel prize winner?
*boggle*
Post by NateRemember that wealthier families have done extremely well in the
United States in the past twenty years, whereas poorer ones have done quite
badly. So the redistributive effects of this administration's tax policy
are going in the exactly wrong direction . I think this is the worst
government the U.S. has ever had." That's a Nobel Laureate in economics!
And he's not alone.
He's insane, is what he is.
Post by NateAnother Nobel Laureate, Joseph Stiglitz said, "A few people at the top are
getting just enormous, enormous benefits. You don't need a Nobel Prize to
figure this out .
You also don't need a nobel prize to figure out that the people at the
top pay disproportionately FAR more in income taxes the the lowest.
For the non-Noble Laureates in the audience, consider:
----
Every day at a few minutes past noon 10 men walk into Daschle's Diner on
the outskirts of Washington, D.C. These are men of habit, a habit which
dictates that they will all order the exact same meals every day, and
every day the final tab will come to the exact same total. The 10 meals
are priced at $10 each, so the tab is $100. One hundred dollars each and
every day.
Does every man pay the price of his $10 meal as he leaves? Not at Daschle's
Diner. No, sir! At Daschle's Diner the motto is "From each according to his
ability, to each according to his hunger." Each man is charged for his meal
according to his ability to pay!
So, every day the 10 diners finish their lunch and line up in exactly the
same order as they pass the cashier and leave. The first four men walk
right past the cashier without paying a thing: a free meal!
The fifth man in line hands over $1 as he leaves. At least he is paying
something.
Diner number six hands over $3 to the cashier. Number seven pays $7.
Diner number eight pays $12. That is more than the value of his meal, but
he, like those who follow him in line, has been very lucky in life and is,
therefore, in a position to pay for his meal and for a part of someone
else's.
Diner number nine paid $18.
Then comes diner number 10. He is the wealthiest of the 10 diners. He's
taken some real chances and has worked well into the night when the other
diners were home with their families, and it has paid off. When number 10
gets to the cashier he pays the balance of the bill. He forks over $59.
One day an amazing thing happens. It seems that Daschle has a partner in
Daschle's Diner. The partner runs an upscale restaurant, Trent's Trattoria,
located in a wealthier section of D.C. Times have been good and the
partnership has been raking in record profits, so the partner, who
controls 51 percent of the partnership, orders a 20 percent reduction
in the price of meals.
The next day the 10 diners arrive on schedule. They sit down and eat
their same meals. This time, though, the 20 percent price cut has gone
into effect and the bill comes to $80. Eight bucks per diner.
The diners line up at the cashier in the same order as before. For the
first four diners, no change. They march out without paying a cent. Free
meal.
Diners number five and six lay claim to their portion of the $20 price cut
right away. Five used to pay $1. Today, though, he walks out with the first
four and pays nothing. That's one more diner on the "freeloaders" list.
Diner number six cuts his share of the tab from $3 to $2. Life is good.
Diner number seven? His tab before the price cut was $7. He now gets by
with just $5.
Diner number eight lowers his payment from $12 to $9. He moves ever-so-
slightly into the freeloading category.
Next is diner number nine. He's still paying more than his share, but that'
s OK, he's been successful (lucky) and can afford it. He pays $12.
Now here comes diner number 10. He, too, wants his share of the $20 price
cut, so his share of the tab goes from $59 to $52. He saves $7.00 per day!
Outside the restaurant there is unrest. The first nine diners have convened
on the street corner to discuss the events of the day. Diner six spots diner
10 with $7 in his hand. "Not fair!" he screams. "I only got one dollar. He's
got seven!"
Diner five, who now eats for free, is similarly outraged. "I only got one
dollar too! This is wrong!" Diner seven joins the rumblings; "Hey! I only
get two bucks back! Why should he get seven?"
The unrest spreads. Now the first four men men who have been getting a
free ride all along join in. They demand to know why they didn't share
in the savings from the $20 price cut! Sure, they haven't been paying for
their meals anyway, but they do have other bills to pay and they felt that
a share of the $20 savings should have gone to them.
Now we have a mob. The laws of democracy mob rule take over and the men
turn on the 10th diner. They grab him, tie him up, then take him to the top
of a hill and lynch him.
At the bottom of the hill proprietor Daschle watches the goings-on,
and smiles.
The next day nine men show up at Daschle's Diner for their noon meal...
----
Get it?
Post by Nategive money to people who will spend it.
Rich people spend too.
Post by NateLink tax cuts to expenditure. For instance, expanded unemployment
benefits,
Already been done.
Repeatedly.
Problem is, you get more of the behavior you reward and less of the
behavior you punish. Rewarding people for not working means... they
will continue to not work!
Post by Nateaid to states and localities,
It is NOT the federal government's job to pay for state and local
expenses. Read up on the constitution some time.
Post by Natemoney to low wage workers,
Raw socialism!
*cough*
In fact, we actually do do this.
Not just with things like the child tax credit and the earned income credit,
but also the saver's credit.
Post by Nateinvestment tax credits,
See the Saver's Credit.
This guy living under a rock?
He's a noble laureate, yet he can't keep up to date with the exactly
the things he is so dearly concerned about?
Give me a freakin' break!
Post by Natein particular incremental tax credits, will direct money in areas where
it will be spent."
Giving a massive tax break to the rich simply doesn't work.
Take a look at the stock market over the past year.
Apparently it does work.
It worked for John Kennedy, too.
Oh, and it hardly rated in as "massive". The rich still pay
disproportionately far more then anyone else in income taxes.
Oh, I would also note the distinction between INCOME and WEALTH.
Income tax, of course, does not touch wealth AT ALL. People with
high income are the ones actually working. Those with lots of
wealth are the ones "saving" their money. So increased income
taxes on the "rich" don't really get at the heart of the "problem".
Do you know what it takes to be in the top 1% of income earners?
Roughtly $300K in adjusted gross income. Top 5% break point is
roughly $130K. Hardly gigantic numbers. More then a few two-income
familes exceed the $130K, and they are hardly "rich" in the sense of
Bill Gates or Warren Buffet.
By the way, I would further point out that many professors, especially
at highly reputable universities, make more then $130K AGI, so these
folks are among the evil hated rich folks they rail so much against.
I'd be curious to know how much of their "excess" income that "rich
people don't need" that they donate to the government to help pay for
all these government scams they deem so critical.
Eh?
Do they put their money where their mouth is?
Do they?