The USA horrifyingly ranks worse than Russia and China on economic inequality, and if we hope to prevent catastrophic economic collapse, we need change ASAP
It is always good to have another voice pointing out the systemic "theft" from workers that has transferred untold wealth to the scam artists, masquerading as "successful" business men. The upper ranks of our kleptocratic capitalists all have at least some exposure to illegal tax evasion, money laundering, or the multitude of skanky stock manipulations, and other financial dodges the global economy tolerates. It seems that criminal behavior is the favored way to "make it" in today's world.
This upside down pyramid is unsustainable and is bound to crash through climate catastrophe if not before.
Great slogans from Fairtax -- but check out their insane, hilarious "details" Details like the federal government is going to pay 1.5 trillion in taxes- - hilarious stuff Like all city county and states must pay -- in advance no less-- a 23% tax on all wage expenditures, all pension expenditures, all capital expenditures-- and they hustlers ONLY put such things in goofy deceptive places And there is much more goofy to it.,
They also lie when they claim they have over 20 million (or whatever) in research. There is no such research for a simple retail sales tax to replace all other taxes -- no research whatsoever
As for Flat tax, they don't even have sneaky places to hide things, they don't have "research" at all
But I gotta tell you--- as valid as your points are, if you could somehow see how many people actually read your full message, you might find that even your brother, even your best friends, do not read very far into it.
I found that out in campaigns 20 years ago.
Even college history teachers examining your theme papers, may reads a only a part.
Three years ago to test this theory, in peer reviewed articles in professional journals, sholars inserted in the middle of their submissions absolute nonsense. Total gibberish.
Turns out not all of those scholars reviewing the work got past half way.
the point is. make it clear, make it true, make is a brief as you can without sacrificing that truth.
Thanks Mark. You’ll be happy to know despite the length of this article, it’s been my most read article in 2 weeks. I’m glad because it reinforces my belief that people will invest and read thoughtfully written content.
Excellent analysis! I agree with everything you say.
Maybe it's time to offer again my idea for personal income tax rates...
Your first $50K/yr is tax exempt. Every additional income from $50-100K is taxed at 20%. From $100-200K at 40%. $200-500K 60%. $500K-$1M 80%. All additional income is taxed at 90%. Most Americans will pay less income tax than they do now, but more revenue overall will go to the federal government. More people will have spending money to boost local small businesses, improving the overall economy.
Lots of other ways to reduce economic injustice & wealth disparity through taxes such as higher corporate taxes, wealth taxes, fees on greenhouse gases, etc.
Thanks. I love the idea of the first $50K being tax exempt. In this economy I'd probably want to push that up another $25K for every child added to a family. I'd also want to increase income ranges for the rest of the potential thresholds you mention. e.g. 60% at $200K, even if its a marginal tax, is not sustainable. But overall the idea of a progressive tax rate for the uber wealthy while a low tax rate for low income and working people -- that makes great sense.
1. Because our wealth and income inequality is just astronomically absurd due to a combination of major tax breaks for the super wealthy, major levels of corporate wage theft, artificially suppressed wages for working people, and the lack of a social safety net like universal healthcare or proper social welfare system.
2. Those autocracies are marginally better, and by no means a gold, silver, or even bronze standard. I brought them up not to praise them (there's nothing to praise) but to show that our system is so harmful to working people that it's in the literal autocracy/dictatorship realm of economic inequality. That is embarrassing and should be cause of major change.
Just 1 advanced democracy, the US. Others are doing much better than we are. Our government always prioritizes billionaire & corporate greed over the common good, at least since Reagan.
Qasim, you seem very knowledgeable in economics. The more I learn about it, the less I want to know of it because I wish it was as simple as the minds of young children. I completely agree with the following statement when I saw it posted, but I’m wondering what is your opinion (or anyone who is knowledgeable in this subject!).
The best economic indicator is how well the bottom 30% are doing in the super market, not how well the 1% are doing in the stock market.
That quote is on point. I get deeply frustrated when politicians and pundits brag about how great the stock market is doing when speaking to blue collar folks. It's completely detached.
There is a spending side to it to the equation too Qasim. The way the government doled out corporate welfare to Wall Street under TARP and later the Obama bailout with virtually no limits or conditions while throwing Main Street under the bus was criminal (~$8 trillion according to this article: https://www.forbes.com/sites/mikecollins/2015/07/14/the-big-bank-bailout/).
For arguments sake (after all if we're giving out welfare anyway, I'd rather those who got screwed get help than those on top who screwed it all up), how many Americans would've been able to keep their homes and weather the storm that followed if 100 million households got $80,000 each instead? But what did we get? The bailout money went to Wall Street with virtually no strings attached, no repayment conditions. And aside from paying themselves fat bonuses with the corporate welfare received, they also engaged the Financial Service Roundtable (FSR, one of the most powerful advocacy group on Capitol Hill that represents the 100 biggest banks) to lobby hard for watered down Dodd-Frank Act that lacked any teeth. What else should anyone have expected when Obama brought all the Clinton and Bush era folks responsible for this mess into his administration (Greenspan, Summers, Bernanke, Geithner etc.)
The system is horribly rigged thanks to this corrupt triangle of industry, lobbies and government where an exclusive group moves between the three ends seamlessly. The result, a system where the reward is private while risk is borne by the public - hence the massive transfer of wealth from the public coffers to the uber-wealthy whenever there is a crisis.
And speaking of getting spending in check - there's the topic of endless wars, $3.8 billion a year to you know who....
Using specific incidence is not giving the proper perspective here. If I may, that is the dynamic. Not the exception. Every taxpayer in America is liable for $8000 per year to corporations and $37 liability to our fellow citizens.
I have a very credible citation somewhere. I've had a really shitty day pardon me for not going on search and rescue this evening.
Every single executive administration since Ronald Reagan has raised the wealth gap. No matter the party affiliation. Thank you so much for recognizing the only pertinent economic statistic to the proletariat!
6. Speaks for itself, and some of the highest of these tax rates were under Eisenhower (R), who began the interstate highway system.
Just today, I read an article about Warren Buffett, who again seemed to complain that his tax rate is lower than that of his secretary, Debbie, and who stated that paying a higher tax would have no effect on his life or lifestyle. What he didn't say was why he doesn't simply take less advantage of available tax deductions, since frankly, they don't do him any good. He said he likes making money. As I always say, the vast, vast, vast majority of people who get money are not counterfeiters: they do not create their own money. The money they get they take from other people, who are then disadvantaged in the interest of nothing. Buffett is known for donating money, including to the Bill and Melinda Gates Foundation. But he donates it on condition that the Foundation will buy Berkshire Hathaway shares. He can't stop himself. He's like every other addict.
I’ve managed industrial facilities in both Union and Non-Union settings. There are pluses and minuses in both, for both management and workers. The bottom line is treating your employees well improves company performance. Always amazed how often this is lost on managers.
The article states that 70-80% tax rate was okay and is okay. No thanks! It’s pretty evident that it’s written by a toxic pro-socialist who has no clue how capitalism works. They should migrate to Venezuela, China or Russia, and see how beautiful life is instead of playing entitled victims. And yes, a McDonal burger worker does not deserve $30/hr wage! There are far more skilled workers who deserve that kind of wage and should be paid highly.
Ahhh, but corporate welfare, no problem huh? You object to paying McDonald's 'burger workers' (comes across as deeply condescending, but that isn't a surprise seeing the ignorance throughout the remainder of your comment) a decent living wage but your purportedly 'non-toxic' system of 'capitalism' is perfectly fine with AIG taking $170 billion in tax payer funded bailouts for recklessly selling credit default swaps like it was candy on halloween and then using that same bailout money to 'reward' themselves with $165 million in bonuses (see: https://www.nytimes.com/2009/03/15/business/15AIG.html). Or all the major investment banks selling 'crappy' (their words, not mine) CDOs while betting against the exact same products with CDSs (i.e defrauding their clients) and getting away with it (bailouts rather than prison).
For the record, China, Venezuela and Russia don't have a 70-80 percent tax rate anywhere in their codes. China's top marginal rate is 45 percent, Russia's is 22 percent and Venezuela's is 34 percent. Well connected oligarchs in these countries can hide their wealth and avoid paying taxes no problem. The models of governance in these countries is deeply undesirable because they're horribly corrupt - not because they're 'socialist.' Scandinavian countries on the other hand have some of the highest marginal tax rates in the world, along with some of the best quality of life outcomes on the planet. A big part of it has to do with creating a society where 'McDonald's burger workers' (aka people working a simple job to make an honest living) can earn a decent living wage, as opposed to one like America where the richest of the rich get the biggest corporate welfare cheques. If they're so committed to 'capitalism' then why do they need to beg taxpayers for bailouts when things go wrong as a result of their bad decisions?
It is always good to have another voice pointing out the systemic "theft" from workers that has transferred untold wealth to the scam artists, masquerading as "successful" business men. The upper ranks of our kleptocratic capitalists all have at least some exposure to illegal tax evasion, money laundering, or the multitude of skanky stock manipulations, and other financial dodges the global economy tolerates. It seems that criminal behavior is the favored way to "make it" in today's world.
This upside down pyramid is unsustainable and is bound to crash through climate catastrophe if not before.
Watch out for frauds like Fairtax and Flat tax
Great slogans from Fairtax -- but check out their insane, hilarious "details" Details like the federal government is going to pay 1.5 trillion in taxes- - hilarious stuff Like all city county and states must pay -- in advance no less-- a 23% tax on all wage expenditures, all pension expenditures, all capital expenditures-- and they hustlers ONLY put such things in goofy deceptive places And there is much more goofy to it.,
They also lie when they claim they have over 20 million (or whatever) in research. There is no such research for a simple retail sales tax to replace all other taxes -- no research whatsoever
As for Flat tax, they don't even have sneaky places to hide things, they don't have "research" at all
It's just slogan based.
More scary 😨 than goofy!!!
Love you and of course you are right.
But I gotta tell you--- as valid as your points are, if you could somehow see how many people actually read your full message, you might find that even your brother, even your best friends, do not read very far into it.
I found that out in campaigns 20 years ago.
Even college history teachers examining your theme papers, may reads a only a part.
Three years ago to test this theory, in peer reviewed articles in professional journals, sholars inserted in the middle of their submissions absolute nonsense. Total gibberish.
Turns out not all of those scholars reviewing the work got past half way.
the point is. make it clear, make it true, make is a brief as you can without sacrificing that truth.
Thanks Mark. You’ll be happy to know despite the length of this article, it’s been my most read article in 2 weeks. I’m glad because it reinforces my belief that people will invest and read thoughtfully written content.
Excellent analysis! I agree with everything you say.
Maybe it's time to offer again my idea for personal income tax rates...
Your first $50K/yr is tax exempt. Every additional income from $50-100K is taxed at 20%. From $100-200K at 40%. $200-500K 60%. $500K-$1M 80%. All additional income is taxed at 90%. Most Americans will pay less income tax than they do now, but more revenue overall will go to the federal government. More people will have spending money to boost local small businesses, improving the overall economy.
Lots of other ways to reduce economic injustice & wealth disparity through taxes such as higher corporate taxes, wealth taxes, fees on greenhouse gases, etc.
Makes alot of common sense to me!💙💙💙💙
Thanks. I love the idea of the first $50K being tax exempt. In this economy I'd probably want to push that up another $25K for every child added to a family. I'd also want to increase income ranges for the rest of the potential thresholds you mention. e.g. 60% at $200K, even if its a marginal tax, is not sustainable. But overall the idea of a progressive tax rate for the uber wealthy while a low tax rate for low income and working people -- that makes great sense.
So why do you think autocracies have done better in narrowing their wealth gap than democracies?
1. Because our wealth and income inequality is just astronomically absurd due to a combination of major tax breaks for the super wealthy, major levels of corporate wage theft, artificially suppressed wages for working people, and the lack of a social safety net like universal healthcare or proper social welfare system.
2. Those autocracies are marginally better, and by no means a gold, silver, or even bronze standard. I brought them up not to praise them (there's nothing to praise) but to show that our system is so harmful to working people that it's in the literal autocracy/dictatorship realm of economic inequality. That is embarrassing and should be cause of major change.
Thanks for the reply/explaination!
All true
Just 1 advanced democracy, the US. Others are doing much better than we are. Our government always prioritizes billionaire & corporate greed over the common good, at least since Reagan.
Qasim, you seem very knowledgeable in economics. The more I learn about it, the less I want to know of it because I wish it was as simple as the minds of young children. I completely agree with the following statement when I saw it posted, but I’m wondering what is your opinion (or anyone who is knowledgeable in this subject!).
The best economic indicator is how well the bottom 30% are doing in the super market, not how well the 1% are doing in the stock market.
That quote is on point. I get deeply frustrated when politicians and pundits brag about how great the stock market is doing when speaking to blue collar folks. It's completely detached.
Related;
https://open.substack.com/pub/modernmuckraker/p/when-financial-collapse-comes?r=2lkf6n&utm_medium=ios
Damn, you came with receipts! 😂 Thank you for all of this data, it is helpful to have it all laid out. You never disappoint.
Receipts like CVS or what’s the point? 😉
There is a spending side to it to the equation too Qasim. The way the government doled out corporate welfare to Wall Street under TARP and later the Obama bailout with virtually no limits or conditions while throwing Main Street under the bus was criminal (~$8 trillion according to this article: https://www.forbes.com/sites/mikecollins/2015/07/14/the-big-bank-bailout/).
For arguments sake (after all if we're giving out welfare anyway, I'd rather those who got screwed get help than those on top who screwed it all up), how many Americans would've been able to keep their homes and weather the storm that followed if 100 million households got $80,000 each instead? But what did we get? The bailout money went to Wall Street with virtually no strings attached, no repayment conditions. And aside from paying themselves fat bonuses with the corporate welfare received, they also engaged the Financial Service Roundtable (FSR, one of the most powerful advocacy group on Capitol Hill that represents the 100 biggest banks) to lobby hard for watered down Dodd-Frank Act that lacked any teeth. What else should anyone have expected when Obama brought all the Clinton and Bush era folks responsible for this mess into his administration (Greenspan, Summers, Bernanke, Geithner etc.)
The system is horribly rigged thanks to this corrupt triangle of industry, lobbies and government where an exclusive group moves between the three ends seamlessly. The result, a system where the reward is private while risk is borne by the public - hence the massive transfer of wealth from the public coffers to the uber-wealthy whenever there is a crisis.
And speaking of getting spending in check - there's the topic of endless wars, $3.8 billion a year to you know who....
The transfer of all that money to the billionaires IS a crisis
Using specific incidence is not giving the proper perspective here. If I may, that is the dynamic. Not the exception. Every taxpayer in America is liable for $8000 per year to corporations and $37 liability to our fellow citizens.
I have a very credible citation somewhere. I've had a really shitty day pardon me for not going on search and rescue this evening.
Yep I make that point about corporate welfare exactly. It’s absurd and untenable.
Every single executive administration since Ronald Reagan has raised the wealth gap. No matter the party affiliation. Thank you so much for recognizing the only pertinent economic statistic to the proletariat!
5. Money doesn't "trickle down." It trickles up.
6. Speaks for itself, and some of the highest of these tax rates were under Eisenhower (R), who began the interstate highway system.
Just today, I read an article about Warren Buffett, who again seemed to complain that his tax rate is lower than that of his secretary, Debbie, and who stated that paying a higher tax would have no effect on his life or lifestyle. What he didn't say was why he doesn't simply take less advantage of available tax deductions, since frankly, they don't do him any good. He said he likes making money. As I always say, the vast, vast, vast majority of people who get money are not counterfeiters: they do not create their own money. The money they get they take from other people, who are then disadvantaged in the interest of nothing. Buffett is known for donating money, including to the Bill and Melinda Gates Foundation. But he donates it on condition that the Foundation will buy Berkshire Hathaway shares. He can't stop himself. He's like every other addict.
Well said
I’ve managed industrial facilities in both Union and Non-Union settings. There are pluses and minuses in both, for both management and workers. The bottom line is treating your employees well improves company performance. Always amazed how often this is lost on managers.
Excellent.
The article states that 70-80% tax rate was okay and is okay. No thanks! It’s pretty evident that it’s written by a toxic pro-socialist who has no clue how capitalism works. They should migrate to Venezuela, China or Russia, and see how beautiful life is instead of playing entitled victims. And yes, a McDonal burger worker does not deserve $30/hr wage! There are far more skilled workers who deserve that kind of wage and should be paid highly.
Ahhh, but corporate welfare, no problem huh? You object to paying McDonald's 'burger workers' (comes across as deeply condescending, but that isn't a surprise seeing the ignorance throughout the remainder of your comment) a decent living wage but your purportedly 'non-toxic' system of 'capitalism' is perfectly fine with AIG taking $170 billion in tax payer funded bailouts for recklessly selling credit default swaps like it was candy on halloween and then using that same bailout money to 'reward' themselves with $165 million in bonuses (see: https://www.nytimes.com/2009/03/15/business/15AIG.html). Or all the major investment banks selling 'crappy' (their words, not mine) CDOs while betting against the exact same products with CDSs (i.e defrauding their clients) and getting away with it (bailouts rather than prison).
For the record, China, Venezuela and Russia don't have a 70-80 percent tax rate anywhere in their codes. China's top marginal rate is 45 percent, Russia's is 22 percent and Venezuela's is 34 percent. Well connected oligarchs in these countries can hide their wealth and avoid paying taxes no problem. The models of governance in these countries is deeply undesirable because they're horribly corrupt - not because they're 'socialist.' Scandinavian countries on the other hand have some of the highest marginal tax rates in the world, along with some of the best quality of life outcomes on the planet. A big part of it has to do with creating a society where 'McDonald's burger workers' (aka people working a simple job to make an honest living) can earn a decent living wage, as opposed to one like America where the richest of the rich get the biggest corporate welfare cheques. If they're so committed to 'capitalism' then why do they need to beg taxpayers for bailouts when things go wrong as a result of their bad decisions?
Yes, preach! 👏👏👏
Speak, brother.
❤️✊🏽
excellent piece. very thoroughly researched. Thanks, You for speaking up, silent no more love it with salaams from Allentown, PA
wasalaam and thank you!