Comments on: Why the GOP defends the wealthy http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: IRATESCEPTIC http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-38055 Sat, 01 Oct 2011 09:11:57 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-38055 I am always astonished by the dichotomy of opinions expressed in these comments that fail to look beyond the borders of the USA. I live in Sweden where income tax rates begin at 30% (no exclusions), and sales tax is 25%, and about 35% of those employed work for national or regional governments. But we have an excellent social security system, basically free health service, reasonable state pensions, worker participation in companies, and NO POOR! Sweden allowed more Iraqi refugees into the country in the first 6 months of 2009 than the USA has allowed in all together! Yet Sweden is ranked third in the world for technical innovation, exports over 50% of its production, and has been little affected by the “World” financial crisis, tho’ unemployment has risen. Further few wealthy Swedish citizens emigrate to avoid high taxation! People here have aspirations, and do achieve excellence. So who’s the problem in the USA?

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By: oldadt http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-38036 Fri, 30 Sep 2011 15:43:49 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-38036 if they tax the wealthy it will take away some of their bribe money they are all too greedy for that being the best politicians that money can buy………

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By: FredFlintstone http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-38012 Fri, 30 Sep 2011 01:33:13 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-38012 @joeaverager “Why aren’t the politicians discussing tariffs and taxes on imports to protect American jobs?”

Because the Republican (and Democrats like Clinton, Gore, Obama, Cuomo) policy is to detax extreme wealth, deregulate the financial and other big industries (mergers especially), and suppress wages. That ensures the maximum profit to these large corporations and to their wealthy investors and their senior executives. It’s not the only way to organize human economic activity. But it is very efficient, over decades, at taking money from working people, the middle class, and the professional class and sending it upstream to the extremely wealthy.

Most US politicians these days are threatened by saving US jobs because it imposes burdens on large US corporations and crimps their profits. The entire economy is built around detaxation, deregulation, and wage suppression. It’s why WalMart (and Target) have low, low prices. It’s why the minimum wage is only half of what it would be if, like oil and other cost inputs businesses face, the minimum wage had been pegged to inflation.

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By: FredFlintstone http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-38011 Fri, 30 Sep 2011 01:20:48 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-38011 I think the columnist also is missing an important part of this story: the rhetoric. When politicians use words like “wealthy” and “top 2%” many (most?) people include the doctor or lawyer who makes six figures. Or the woman who creates a business, runs it for 20 years, then sells it for a couple million. In truth, none of these people are the problem we face.

Instead, it’s the extremely wealthy, which is totally different. Extreme wealth is any trust fund baby with over $10 million (because they did nothing to earn the money they enjoy, because society’s interests in using that money to create current and future wealth trumps their interest in the money). But it’s also the hedge fund manager who makes a billion dollars (or even $100 million). Extreme wealth also includes CEOs of publicly traded companies who makes more than a million or two (basically more than 50 times the lowest salary in their company).

It’s this group of extremely wealthy people that has exploded and has proven itself, for the most part, to be extremely greedy when it comes to paying a fair share to fund the infrastructure that makes their wealth possible (never mind the issue of whether or not anyone should make a billion dollars). You can’t create wealth without courthouses to enforce contracts, roads and bridges and the rest to deliver goods and get workers to work, and all the rest. And we cannot fund this infrastructure on the backs of plumbers, cops, and school teachers. I’d also argue that it is immoral for people who don’t have wealth to pay substantially for infrastructure that generates wealth, although they do get jobs often enough as part of wealth creation.

In any event, politicians will say stuff about this issue that deliberately conflates the $250,000 a year wage earner with the trust fund baby and the hedge fund manager. That’s because it short circuits the debate. I don’t want to overtax people who make less than a million in a year, personally. But politicians make me think that’s what we’re talking about when we talk about taxing wealth or wealth being a problem in this country.

Finally, the 1990s tax rate on extreme wealth should not be the yardstick. It should be the tax rates from 1945 to 1980, ranging from 90% to 63%, when all income groups saw their incomes double. Reagan and all Democratic Presidents since then have pushed a much lower top tax rate which, among other causes, has led everyone but the top 1% (and really the top .5%) to see their incomes go up more than 1% a year while inflation has gone up much more. I’ll know politicians are serious about solving this problem when they push a 65% tax rate on all income over some large number (say $5 million). It probably won’t happen short of another depression, or a revolution.

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By: rendy815 http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-38008 Thu, 29 Sep 2011 23:07:27 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-38008 Yeah, your not too arogant. So, it comes down to “sucessful or losers? You, sir, are the loser!
Those rich people out buying classic, rich guy cars, need the extra money for those important toys, while the rest of us struggle in a world of few jobs available, banks charging every penney in sight and way over priced homes. Yes, your a piece of work!

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By: zotdoc http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-37992 Thu, 29 Sep 2011 14:48:21 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-37992 The half of the population that pays no income tax should never be adversly affected by the half that don’t pay their fair share? Baloney.

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By: coyotle http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-37969 Wed, 28 Sep 2011 17:55:06 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-37969 Paul Krugmen said it right. The U.S. needs a debt to income ratio for spending by the federal government similar to that of WW II. Our water, energy, transportation and public infrastructure is collapsing. We are not addressing environmental issues such as drought, flooding, rising sea, land reclamation, air quality levels and our diminishing fresh water supply. We can’t make resources available to assist those who have been homeless since Hurricane Andrew.

Our institutions are all collapsing from “slash to the bone” budget cutting practices by politicians unwilling to be honest with their constituents about the true cost of effective government. Not the inept run on the cheap one we have now.

Clearly the united States needs to be remade anew. Much of the industrialized world’s manufacturing was devastated during WW II. These nations began rebuilding from the rubble in the late 1940s. Some would argue the U.S. payed for it(Marshall Plan). Isn’t it odd how the U.S. won’t pay to rebuild or replace what is quickly becoming rubble now in her own back yard?

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By: zotdoc http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-37964 Wed, 28 Sep 2011 14:36:50 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-37964 Taxing income is a bad idea, because it punishes people for being productive. The “progressive” or “graduated” tax system penalyzes people more as they become successful, which is the wrong thing to do if you want success. The complicated series of deductions to the income tax skews economic activity and has created an army of lobbyists in DC, exposing our politicians to the temptations of corruption involving extracting contributions. Our constitution is supposed to provide us all equal protection under the law, and the only way to really do this with tax is to have everyone pay the same percentage of their income with no exceptions or deductions. It is patently unfair to heap ever more taxes on the successful while 47% of the population pays no income tax at all but can vote for ever more entitlements. If the rich and poor had skin in the game then everyone would have an incentive to control govt spending and keep the tax rates low for all.

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By: KarmaPolice http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-37962 Wed, 28 Sep 2011 13:22:37 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-37962 “The deep-seated American values of aspiration and economic freedom have a funny way of trumping rationality in debates over fiscal policy.”

Yes indeed. WalMart learned to tap this ignorance very early on by re-naming all their clerks as associates.

It sounds important and more valuable, but is essentially worthless.

Voting Republican as a sign of wealth all started with Ronald Reagan and the middle class has been hanging themselves ever since.

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By: Joeaverager http://blogs.reuters.com/great-debate/2011/09/27/the-reason-the-gop-keeps-sticking-up-for-the-wealthy/#comment-37940 Tue, 27 Sep 2011 21:20:41 +0000 http://blogs.reuters.com/great-debate/?p=10559#comment-37940 You make your wealth in Asia with your investments and live in the USA, the land of the safe, wealthy and free…

Why aren’t the politicians discussing tariffs and taxes on imports to protect American jobs?

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