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Here it comes... 90% tax proposed for the rich.

Discussion in 'Politics, Elections & Legislation' started by Brian in Oregon, Sep 4, 2010.

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  1. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Robert Reich: Stimulate Economy With 90% Tax On Top Earners<br>
    By Noel Sheppard (Bio | Archive)<br>
    Fri, 09/03/2010 - 12:51 ET<br>

    Can you imagine what would happen to the economy if top wage earners were taxed at 70 to 90 percent?<br>

    Former Clinton Labor Secretary Robert Reich can, and he thinks it's a great idea.

    To be sure, many Americans were concerned that giving Democrats control of the executive and legislative branches of our government during an economic crisis could usher back in socialist tendencies first seen in this nation during the Depression.

    Fears of such a leftward shift sparked a new powerful movement called the Tea Party.

    With this in mind, Reich's op-ed "How to End the Great Recession" published in Friday's New York Times validates these concerns:

    Story Continues Below Ad ?

    The rich spend a much smaller proportion of their incomes than the rest of us. So when they get a disproportionate share of total income, the economy is robbed of the demand it needs to keep growing and creating jobs.

    What's more, the rich don't necessarily invest their earnings and savings in the American economy; they send them anywhere around the globe where they'll summon the highest returns - sometimes that's here, but often it's the Cayman Islands, China or elsewhere. The rich also put their money into assets most likely to attract other big investors (commodities, stocks, dot-coms or real estate), which can become wildly inflated as a result.

    Meanwhile, as the economy grows, the vast majority in the middle naturally want to live better. Their consequent spending fuels continued growth and creates enough jobs for almost everyone, at least for a time. But because this situation can't be sustained, at some point - 1929 and 2008 offer ready examples - the bill comes due.

    And how does Reich see "us" paying that bill? If you said "higher and higher taxes," give yourself a cigar:

    THE Great Depression and its aftermath demonstrate that there is only one way back to full recovery: through more widely shared prosperity. In the 1930s, the American economy was completely restructured. New Deal measures - Social Security, a 40-hour work week with time-and-a-half overtime, unemployment insurance, the right to form unions and bargain collectively, the minimum wage - leveled the playing field.

    In the decades after World War II, legislation like the G.I. Bill, a vast expansion of public higher education and civil rights and voting rights laws further reduced economic inequality. Much of this was paid for with a 70 percent to 90 percent marginal income tax on the highest incomes. And as America's middle class shared more of the economy's gains, it was able to buy more of the goods and services the economy could provide. The result: rapid growth and more jobs.

    70 to 90 percent! He said it, didn't he? 70 to 90 percent!

    But there's more:

    What else could be done to raise wages and thereby spur the economy? We might consider, for example, extending the earned income tax credit all the way up through the middle class, and paying for it with a tax on carbon. Or exempting the first $20,000 of income from payroll taxes and paying for it with a payroll tax on incomes over $250,000.

    Yep. Let's tax carbon and give the proceeds to lower and middle-income wage earners.

    There it is, folks. If you doubted the whole global warming scam was specifically designed to redistribute wealth, one of the left's most-respected economic strategists just admitted it!

    But there's still more:

    In the longer term, Americans must be better prepared to succeed in the global, high-tech economy. Early childhood education should be more widely available, paid for by a small 0.5 percent fee on all financial transactions. Public universities should be free; in return, graduates would then be required to pay back 10 percent of their first 10 years of full-time income.

    A 0.5 percent fee on all financial transactions! Does that mean if one buy's stock or a house, the government gets a half of a percent? And another half when you sell? Does that include mutual funds, treasury bills, and money market accounts? And certificates of deposit?

    See where this could lead?

    Now just imagine if these socialists also get their way and a new valued added tax is implemented?

    At that point, any time you want to actually use your money, the government gets a slice kind of like a mafia kingpin or a union leader.

    And this is supposed to help the economy?

    But there's still more:

    Another step: workers who lose their jobs and have to settle for positions that pay less could qualify for "earnings insurance" that would pay half the salary difference for two years; such a program would probably prove less expensive than extended unemployment benefits.

    Earnings insurance! Earnings insurance!

    As I hinted at the onset, this op-ed by Reich is a picture of the future if the Party in power and their media minions get their way.

    Be afraid, America! Be very afraid!
     
  2. Brian in Oregon

    Brian in Oregon Well-Known Member

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    And here are his own words on this, in his original hit piece:

    THIS promises to be the worst Labor Day in the memory of most Americans. Organized labor is down to about 7 percent of the private work force. Members of non-organized labor — most of the rest of us — are unemployed, underemployed or underwater. The Labor Department reported on Friday that just 67,000 new private-sector jobs were created in August, while at least 125,000 are needed to keep up with the growth of the potential work force.

    The national economy isn’t escaping the gravitational pull of the Great Recession. None of the standard booster rockets are working: near-zero short-term interest rates from the Fed, almost record-low borrowing costs in the bond market, a giant stimulus package and tax credits for small businesses that hire the long-term unemployed have all failed to do enough.

    That’s because the real problem has to do with the structure of the economy, not the business cycle. No booster rocket can work unless consumers are able, at some point, to keep the economy moving on their own. But consumers no longer have the purchasing power to buy the goods and services they produce as workers; for some time now, their means haven’t kept up with what the growing economy could and should have been able to provide them.

    This crisis began decades ago when a new wave of technology — things like satellite communications, container ships, computers and eventually the Internet — made it cheaper for American employers to use low-wage labor abroad or labor-replacing software here at home than to continue paying the typical worker a middle-class wage. Even though the American economy kept growing, hourly wages flattened. The median male worker earns less today, adjusted for inflation, than he did 30 years ago.

    But for years American families kept spending as if their incomes were keeping pace with overall economic growth. And their spending fueled continued growth. How did families manage this trick? First, women streamed into the paid work force. By the late 1990s, more than 60 percent of mothers with young children worked outside the home (in 1966, only 24 percent did).

    Second, everyone put in more hours. What families didn’t receive in wage increases they made up for in work increases. By the mid-2000s, the typical male worker was putting in roughly 100 hours more each year than two decades before, and the typical female worker about 200 hours more.

    When American families couldn’t squeeze any more income out of these two coping mechanisms, they embarked on a third: going ever deeper into debt. This seemed painless — as long as home prices were soaring. From 2002 to 2007, American households extracted $2.3 trillion from their homes.

    Eventually, of course, the debt bubble burst — and with it, the last coping mechanism. Now we’re left to deal with the underlying problem that we’ve avoided for decades. Even if nearly everyone was employed, the vast middle class still wouldn’t have enough money to buy what the economy is capable of producing.

    Where have all the economic gains gone? Mostly to the top. The economists Emmanuel Saez and Thomas Piketty examined tax returns from 1913 to 2008. They discovered an interesting pattern. In the late 1970s, the richest 1 percent of American families took in about 9 percent of the nation’s total income; by 2007, the top 1 percent took in 23.5 percent of total income.

    It’s no coincidence that the last time income was this concentrated was in 1928. I do not mean to suggest that such astonishing consolidations of income at the top directly cause sharp economic declines. The connection is more subtle.

    The rich spend a much smaller proportion of their incomes than the rest of us. So when they get a disproportionate share of total income, the economy is robbed of the demand it needs to keep growing and creating jobs.

    What’s more, the rich don’t necessarily invest their earnings and savings in the American economy; they send them anywhere around the globe where they’ll summon the highest returns — sometimes that’s here, but often it’s the Cayman Islands, China or elsewhere. The rich also put their money into assets most likely to attract other big investors (commodities, stocks, dot-coms or real estate), which can become wildly inflated as a result.

    Meanwhile, as the economy grows, the vast majority in the middle naturally want to live better. Their consequent spending fuels continued growth and creates enough jobs for almost everyone, at least for a time. But because this situation can’t be sustained, at some point — 1929 and 2008 offer ready examples — the bill comes due.

    This time around, policymakers had knowledge their counterparts didn’t have in 1929; they knew they could avoid immediate financial calamity by flooding the economy with money. But, paradoxically, averting another Great Depression-like calamity removed political pressure for more fundamental reform. We’re left instead with a long and seemingly endless Great Jobs Recession.

    THE Great Depression and its aftermath demonstrate that there is only one way back to full recovery: through more widely shared prosperity. In the 1930s, the American economy was completely restructured. New Deal measures — Social Security, a 40-hour work week with time-and-a-half overtime, unemployment insurance, the right to form unions and bargain collectively, the minimum wage — leveled the playing field.

    In the decades after World War II, legislation like the G.I. Bill, a vast expansion of public higher education and civil rights and voting rights laws further reduced economic inequality. Much of this was paid for with a 70 percent to 90 percent marginal income tax on the highest incomes. And as America’s middle class shared more of the economy’s gains, it was able to buy more of the goods and services the economy could provide. The result: rapid growth and more jobs.

    By contrast, little has been done since 2008 to widen the circle of prosperity. Health-care reform is an important step forward but it’s not nearly enough.

    What else could be done to raise wages and thereby spur the economy? We might consider, for example, extending the earned income tax credit all the way up through the middle class, and paying for it with a tax on carbon. Or exempting the first $20,000 of income from payroll taxes and paying for it with a payroll tax on incomes over $250,000.

    In the longer term, Americans must be better prepared to succeed in the global, high-tech economy. Early childhood education should be more widely available, paid for by a small 0.5 percent fee on all financial transactions. Public universities should be free; in return, graduates would then be required to pay back 10 percent of their first 10 years of full-time income.

    Another step: workers who lose their jobs and have to settle for positions that pay less could qualify for “earnings insurance” that would pay half the salary difference for two years; such a program would probably prove less expensive than extended unemployment benefits.

    These measures would not enlarge the budget deficit because they would be paid for. In fact, such moves would help reduce the long-term deficits by getting more Americans back to work and the economy growing again.

    Policies that generate more widely shared prosperity lead to stronger and more sustainable economic growth — and that’s good for everyone. The rich are better off with a smaller percentage of a fast-growing economy than a larger share of an economy that’s barely moving. That’s the Labor Day lesson we learned decades ago; until we remember it again, we’ll be stuck in the Great Recession.

    Robert B. Reich, a secretary of labor in the Clinton administration, is a professor of public policy at the University of California, Berkeley, and the author of the forthcoming “Aftershock: The Next Economy and America’s Future.”
     
  3. Brian in Oregon

    Brian in Oregon Well-Known Member

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    What this dumbass can't fathom are three things that led to having to work more hours, or having both spouses work, for the same amount of take home money today as decades ago. Higher taxes, inflation over the decades causing more income on paper but higher goods costs, and the inflation causing higher taxes (tax indexing creep that was not adjusted by the government).

    The key is LOWER TAXES and LESS GOVERNMENT.

    Everything else simply contributes to HIGHER TAXES and MORE GOVERNMENT, and that will NEVER solve the problem.
     
  4. Russ-in-Pa

    Russ-in-Pa Well-Known Member

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    I have never had a job provided by a poor man.

    People with larger than average incomes are the job creators in this country.

    If they are taxed at that high a rate their incentive to grow businesses will go away.

    BAD idea.
     
  5. Paladin

    Paladin Well-Known Member

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    More never ending economic stupidity from a 'I feel your pain, I will force lenders to make loans to you regardless of your means to repay' liberal puke.


    Has anyone worked for a poor person? ANYONE????????????????


    Is there one, just one liberal with even HALF of a brain?????????
     
  6. Bisi

    Bisi TS Member

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    Paladin, you wrote - "Has anyone worked for a poor person?" Well it feels like I'm working for poor people. I made the mistake of stopping by a grocery yesterday afternoon in the old neighborhood I grew up in. It has gone to heck. Every time I go to that store I get pi$$ed. I think every person in that store got rung up at least two times and some three. The woman in front of me made three seperate purchases. EBT card paid for most of it, then WIC for the dairy products, and cash for the beer.

    I feel like I'm working all the time for poor people. EBT, public housing, Medicad, tution, head start, heat assitance in winter, fans in the summer, (what happened to the fans we purchased last summer) etc..........

    Never got a job from a poor person though, just had to work for em. Not LOL
     
  7. stokinpls

    stokinpls Well-Known Member

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    Does this mean Lord and Lady Soetoro won't earn $7,000,000 again next year?
     
  8. bigdogtx

    bigdogtx Well-Known Member

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    stokin,,,,this applies to us,,,,not them,,,,the elite are excluded through their continuing sleight of hand....
     
  9. 3357

    3357 Member

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    Reich, a teacher at U of C, Berkley.....that says it all. That campus should be recognized as a differant planet.
     
  10. Don Steele

    Don Steele Well-Known Member

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    Oh...the poor state of organized labor...!!!

    Makes ya wonder how BIG LABOR came up with 50 million or so to fund O'bummer's campaign....???
    Reich is a Marxist. As pointed out above, the only thing he can do is hold a "teaching" job @ Berkley indoctrinating another few generations of kids with his filth.

    If you get out to the club this week-end...be sure to thank your union buddies for this train-wreck administration they helped bring us.
     
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