The Ethics of Wealth and Taxation
We hear about "tax cuts for the wealthy" almost as a cure-all for the United States' domestic ills. And while many people point to Reagan's tax breaks in the 1980s as a sign of success, taxes did in fact, go up in order to support that economy. Furthermore, trickle-down and its descendant economic mutations depend on the existence of a considerable poverty class in order to keep manufacturing and service prices low, and the American economic machine has led to a Cold War and a number of hot conflicts, and has contributed much to the disturbing events with which we now deal.
But beyond all that, Americans worry more about whether or not they're paying their "fair share" of taxes. So a few numbers derived from the United Nations and the US government, pulled from Wealth Distribution Statistics (1999)
- As of 1995 (the latest figures available), Federal Reserve research found that the wealth of the top one percent of Americans is greater than that of the bottom 95 percent. Three years earlier, the Fed's Survey of Consumer Finance found that the top one percent had wealth greater than the bottom 90 percent.
- From 1983-1995 only the top five percent of households saw an increase in their net worth while only the top 20 percent experienced an increase in their income.
- Wealth projections through 1997 suggest that 86 percent of stock market gains between 1989 and 1997 went to the top ten percent of households while 42 percent went to the most well-to-do one percent.
- Between 1970 and 1990, the typical American worked an additional 163 hours per year. That's equivalent to adding an additional month of work per year - for the same or less pay.
- Between 1970 and 1990, the typical American worked an additional 163 hours per year. That's equivalent to adding an additional month of work per year - for the same or less pay.
- In 1996, the Census Bureau reported record-level inequality, with the top fifth of U.S. households claiming 48.2 percent of national income while the bottom fifth gets by on 3.6 percent.
- Spending on luxury goods grew by 21 percent from 1995 to 1996 while overall merchandise sales grew only 5 percent.
This last number is one of the reasons trickle-down doesn't work. The additional wealth at the top goes to luxury items, which form only a small portion of the commercial market and represent a small portion of the working economy. There was a great Doonesbury sequence about that in March, 1989.
And one last number that I just can't avoid:
- Adjusting for inflation, the net worth of the median American household fell 10 percent between 1989 and 1997, declining from $54,600 to $49,900. The net worth of the top one percent is now 2.4 times the combined wealth of the poorest 80 percent.
These are the reasons that you should tax the wealthy.
In the heart of the Reagan economy, conservative humorist P.J. O'Rourke took a trip along the Volna River, I think it was (the essay appears, I believe, in Republican Party Reptile). He spent a few words on some Western Communists who sycophantically plied the Russians with all manner of question about real wages and relative wealth. It was a point of ridicule, and we see why: such considerations are bad for an economy which protects its wealthiest.
A socialist sponsored statistic from the 1990s indicated a stark truth about wealth. Compare the wealth of a CEO of a major corporation to that of the lowest-paid employee contributing to the company. In about 1997 I saw a note on Disney that put Eisner's "wages" in the thousands of dollars an hour compared to the pennies an hour paid the women in Honduras who made "Pocahontas" pajamas. Yes, it's a statistic designed to make a point, but it doesn't change the fact that the wealthy can better afford to contribute more to any taxation structure than the poor, and as we see from the 1990s, more than the middle class, as well.
So I guess the question comes down to what is the ethical way to tax?
Is one's contribution merely a number, or is it a substantial part of their worth?
For instance, a UN number pertaining to the world:
- UNDP calculates that an annual 4 percent levy on the world's 225 most well-to-do people (average 1998 wealth: $4.5 billion) would suffice to provide the following essentials for all those in developing countries: adequate food, safe water and sanitation, basic education, basic health care and reproductive health care. At present, 160 of those individuals live in OECD countries; 60 reside in the United States.
Four per cent of four and a half billion is a tall check for any one person to write. Furthermore, the nature of the economy is such that it's not guaranteed that any of, say, the 60 Americans would have that much cash available to them without threatening the stability of at least one company they've invested in.
However, while such a levy is not in any sense practical, it does provide a moment for reflection on the power of wealth distribution.
Given the history of American "trickle-down economics" and its mutant offspring, I don't see how "tax cuts for the wealthy" will do squat for the economy in the long run. Considering the nature of the American "recession" (manufactured and barely there) and a mere glimpse at the degree of doctoring necessary in the ledgers to pull off the Economy That Bush Killed (admittedly, it might possibly have actually been dying, but euthanasia isn't legal in the US, although there is an allegorical argument that it was an "assisted suicide") support for coddling the wealthiest of society grows more dubious.
But that's my take on it.
I mean, didn't Enron once file a tax return showing that the US government owed them money?
Yeah, let's put even more money into the hands of that ilk. That'll fix things..
Sound off. Pitch your two cents. Cut your cheese.
I mean ... er ... yeah.
thanx,
Tiassa
This topic is a splinter from American Media, in the WE&P forum.Last I checked, the top 5% of wage earners shoulder over half of the tax burden. How much exactly SHOULD the wealthy pay? (Immane1)
They pay more total, obviously, but they pay less percentage wise (JPS}
The top 5% are not "wage earners", they are just plain wealthy. (JusticeUSA)
We hear about "tax cuts for the wealthy" almost as a cure-all for the United States' domestic ills. And while many people point to Reagan's tax breaks in the 1980s as a sign of success, taxes did in fact, go up in order to support that economy. Furthermore, trickle-down and its descendant economic mutations depend on the existence of a considerable poverty class in order to keep manufacturing and service prices low, and the American economic machine has led to a Cold War and a number of hot conflicts, and has contributed much to the disturbing events with which we now deal.
But beyond all that, Americans worry more about whether or not they're paying their "fair share" of taxes. So a few numbers derived from the United Nations and the US government, pulled from Wealth Distribution Statistics (1999)
- As of 1995 (the latest figures available), Federal Reserve research found that the wealth of the top one percent of Americans is greater than that of the bottom 95 percent. Three years earlier, the Fed's Survey of Consumer Finance found that the top one percent had wealth greater than the bottom 90 percent.
- From 1983-1995 only the top five percent of households saw an increase in their net worth while only the top 20 percent experienced an increase in their income.
- Wealth projections through 1997 suggest that 86 percent of stock market gains between 1989 and 1997 went to the top ten percent of households while 42 percent went to the most well-to-do one percent.
- Between 1970 and 1990, the typical American worked an additional 163 hours per year. That's equivalent to adding an additional month of work per year - for the same or less pay.
- Between 1970 and 1990, the typical American worked an additional 163 hours per year. That's equivalent to adding an additional month of work per year - for the same or less pay.
- In 1996, the Census Bureau reported record-level inequality, with the top fifth of U.S. households claiming 48.2 percent of national income while the bottom fifth gets by on 3.6 percent.
- Spending on luxury goods grew by 21 percent from 1995 to 1996 while overall merchandise sales grew only 5 percent.
This last number is one of the reasons trickle-down doesn't work. The additional wealth at the top goes to luxury items, which form only a small portion of the commercial market and represent a small portion of the working economy. There was a great Doonesbury sequence about that in March, 1989.
And one last number that I just can't avoid:
- Adjusting for inflation, the net worth of the median American household fell 10 percent between 1989 and 1997, declining from $54,600 to $49,900. The net worth of the top one percent is now 2.4 times the combined wealth of the poorest 80 percent.
These are the reasons that you should tax the wealthy.
In the heart of the Reagan economy, conservative humorist P.J. O'Rourke took a trip along the Volna River, I think it was (the essay appears, I believe, in Republican Party Reptile). He spent a few words on some Western Communists who sycophantically plied the Russians with all manner of question about real wages and relative wealth. It was a point of ridicule, and we see why: such considerations are bad for an economy which protects its wealthiest.
A socialist sponsored statistic from the 1990s indicated a stark truth about wealth. Compare the wealth of a CEO of a major corporation to that of the lowest-paid employee contributing to the company. In about 1997 I saw a note on Disney that put Eisner's "wages" in the thousands of dollars an hour compared to the pennies an hour paid the women in Honduras who made "Pocahontas" pajamas. Yes, it's a statistic designed to make a point, but it doesn't change the fact that the wealthy can better afford to contribute more to any taxation structure than the poor, and as we see from the 1990s, more than the middle class, as well.
So I guess the question comes down to what is the ethical way to tax?
Is one's contribution merely a number, or is it a substantial part of their worth?
For instance, a UN number pertaining to the world:
- UNDP calculates that an annual 4 percent levy on the world's 225 most well-to-do people (average 1998 wealth: $4.5 billion) would suffice to provide the following essentials for all those in developing countries: adequate food, safe water and sanitation, basic education, basic health care and reproductive health care. At present, 160 of those individuals live in OECD countries; 60 reside in the United States.
Four per cent of four and a half billion is a tall check for any one person to write. Furthermore, the nature of the economy is such that it's not guaranteed that any of, say, the 60 Americans would have that much cash available to them without threatening the stability of at least one company they've invested in.
However, while such a levy is not in any sense practical, it does provide a moment for reflection on the power of wealth distribution.
Given the history of American "trickle-down economics" and its mutant offspring, I don't see how "tax cuts for the wealthy" will do squat for the economy in the long run. Considering the nature of the American "recession" (manufactured and barely there) and a mere glimpse at the degree of doctoring necessary in the ledgers to pull off the Economy That Bush Killed (admittedly, it might possibly have actually been dying, but euthanasia isn't legal in the US, although there is an allegorical argument that it was an "assisted suicide") support for coddling the wealthiest of society grows more dubious.
But that's my take on it.
I mean, didn't Enron once file a tax return showing that the US government owed them money?
Yeah, let's put even more money into the hands of that ilk. That'll fix things..
Sound off. Pitch your two cents. Cut your cheese.
I mean ... er ... yeah.
thanx,
Tiassa