U.S. Distribution of Wealth Now Worse Than Banana Republics

[taxslave]

Why should wealth be distributed equally without equal effort to earn it?

Because socialists are too lazy to work for it.

The way to do it is to find a way to get Companies and small business to hire mor people to increase the number of people that pay taxes.....taxing small business more will just keep them from hiring more people...

I think that this has been posted before.....

Tax System explained in beer.

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.

If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.

The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.

The tenth man (the richest) would pay $59.

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve.

'Since you are all such good customers,' he said, 'I'm going to reduce the cost of your daily beer by $20.' Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men? The paying customers?

How could they divide the $20 windfall so that everyone would get his 'fair share?'

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so the fifth man, like the first four, now paid nothing (100% savings)
The sixth now paid $2 instead of $3 (33% savings).
The seventh now pay $5 instead of $7 (28% savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 ( 22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

'I only got a dollar out of the $ 20,' declared the sixth man. He pointed to the tenth man,' but he got $10!'

'Yeah, that's right,' exclaimed the fifth man. 'I only saved a Dollar, too. It's unfair that he got ten times more than I!'

'That's true!!' shouted the seventh man. 'Why should he get $10 back when I got only two? The wealthy get all the breaks!'

'Wait a minute,' yelled the first four men in unison. 'We didn't get anything at all. The system exploits the poor!'

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, this is how our tax system works.

The people who pay the highest taxes get the most benefit from a tax reduction.

Tax them too much, attack them for being wealthy, and they just may not show up anymore.

In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

I was thinking of that same story only I can never remember how it goes and was going to look it up when I get home this weekend. Thanks. This should be sent to every one with an NDP membership card.

 

[Bar Sinister]

Because socialists are too lazy to work for it.



I was thinking of that same story only I can never remember how it goes and was going to look it up when I get home this weekend. Thanks. This should be sent to every one with an NDP membership card.

That would be fine if like every pro-capitalist parable it was not full of errors and made up figures. Can you find an example of any American or Canadian who pays 59% of his income in taxes? The only industrial power I can think of where such a rate applies is Japan and it does not appear to have had much of an impact on the Japanese economy, particularly during the 1960s to 1980s which was the time of Japan's greatest economic growth.

The tax rate for the super rich under DDE was 91%.

With what you just said it will be interesting to see how the newly elected house finds billions of dollars without raising taxes and not cutting defence, medicade and socila security.

The current format of spending and tax cuts is usustainable.

Good luck.

Just a couple of questions. What was the DDE? And where did you get the 91% figure?

This is where Capitalism starts to crumble.
What is the end game ?
To own all the weath in the world? The country?
Wouldn't that devalue money to a point of worthlessness?

The way I see it , if the you made loads of money in a country that gave you that chance than it's only fair you pay your share.
This corporate gouging is killing the country...... we the people are that country!
I'd be all for capital gain cap. Oil companies on top of that list. They act united like a monopoly.

You are close to pointing out the capitalist paradox, which is that given the continued concentration of capital under a complete free market system the eventual result is the creation of a few mega-corporations that own or control everything and essentially end up destroying the system that created them.

 

[El Barto]

What is the goal of huge corporations profits? Oil industries are investing it , or are they? In research on new energy source or is that an expense before profit? anyways ....other than paying off the share holders ......and giving percentage performances for the ceo....

what is the goal?...
They have been gouging us ....the population in general is bleeding money ....thier paychecks are not raising fast enough to compensate ...and it doesn't end there ....everything costs more because of transport cost or the chemical material costs....plastics and such.

No when you have profit over populations welfare ...not the social program ....then we have a problem.

didn't the US governement have any involvement in cutting down the size of the big three autoindustries because they thought they worried about monopolies?
That is how the oil industries are running things...they all hike and lower prices at the same time...

I won't even get into the inviromental impact either ....some corporations hidden reasons for going to places like mexico.

 

[TenPenny]

Didn't Sweden have, for a time, a system whereby some people had tax rates of more than 100%?

 

[captain morgan]

That would be fine if like every pro-capitalist parable it was not full of errors and made up figures. Can you find an example of any American or Canadian who pays 59% of his income in taxes?

Is 53% high enough to count? Take a look here and also click on the Revenu Quebec link to get the provincial component.

Fed rate at the top end = 29%
Que prov rate at top end = 24%

What are the income tax rates in Canada?


I suppose that if you added in the 5% GST and 7.5% provincial sales tax and that gets you well into the 60's.

The only industrial power I can think of where such a rate applies is Japan and it does not appear to have had much of an impact on the Japanese economy, particularly during the 1960s to 1980s which was the time of Japan's greatest economic growth.

You may recall that in the 1980's, many wealthy Japanese individuals and companies were buying up property, golf courses and businesses throughout the globe... That money left Japan and benefited another economy.

You are close to pointing out the capitalist paradox, which is that given the continued concentration of capital under a complete free market system the eventual result is the creation of a few mega-corporations that own or control everything and essentially end up destroying the system that created them.

In it's most extreme interpretation it exists, but historical observation will determine that it is cyclical.

However, the redistribution of the wealth through taxation and policy development will not prevent a corporation from dominating a market, in fact it may promote that ideal through penalizing (financially) small and medium sized businesses and delaying/preventing their expansion.

 

[wulfie68]

"Paying their share" is something I always look at with a jaundiced eye.

Often I find people saying that of others don't look at a fair valuation of their targets but rather are making a knee jerk reaction in response to a headline.

By the same token, those that protest too loudly they are paying their fair share or than that, also like to minimize the contributions society is giving to them. Things like government subsidies, tax incentives, low interest loans and other programs to their companies and their employees always tend to be under represented.

At the end of the day, the rich DO owe the country that allows them to succeed: in some cases that protection and ability to conduct business was/is purchased with blood of the less fortunate masses. Anyone who doesn't acknowledge that debt doesn't deserve the support that their enterprise ultimately needs, be it from the gov't or the public, in order to attain that success.

 

[YukonJack]

The word "FAIR", as in fair share has been bandied about for a long time.

When it comes to taxation, at least in my opinion, a "FAIR" tax is only on consumption.

You buy something, you pay tax. The more you buy, the more you pay.

You take home every penny that you earned, and KEEP IT. After all, it is yours, because you earned it.

 

[mentalfloss]

You take home every penny that you earned, and KEEP IT. After all, it is yours, because you earned it.

Do I need to post the reaganomics pic again?

 

[YukonJack]

Do I need to post the reaganomics pic again?

Yeah, please do and explain.

BTW, if you want to pay more tax, go ahead and do it. I am not stopping you. But I expect the same courtesy from you to leave my paycheck alone.

the trouble with you socialists that you are loose and fancy free with other people's money, but you are the second coming of Scrooge when it comes to your own.

 

[ironsides]

What do you suggest be done, take from the rich and give to the poor. Been done before, didn't work then won't work now.


How about we just restrict outsourcing to foreign countries and start building products like we used to. We have the manpower, we have the resources, we have the intellect and we have the market. Now just have to get rid of the so called economists who got us into this mess, plus of course all politicians who were in office and allowed it to happen. simple.

 

[mentalfloss]

Yeah, please do and explain.

BTW, if you want to pay more tax, go ahead and do it. I am not stopping you. But I expect the same courtesy from you to leave my paycheck alone.

the trouble with you socialists that you are loose and fancy free with other people's money, but you are the second coming of Scrooge when it comes to your own.

Way to stereotype me into being a socialist and scrooge. Very classy. Clearly you're part of the same crew that yells out COMMIE and TERRORIST on cue in gutteral fashion.

My only point was that obviously the term 'earned' is subjective. And obviously it's pretty easy to see that we don't necessarily 'earn' our paychecks. And just so I can completely disembowel your prejudice here - I actually live in a city who elected a fiscal conservatist because they were bought and paid for by their politician, but I voted for the civil rights guy. American Thinker would be proud.

 

[DaSleeper]

Seems like nobody has heard of ....... The Laffer Curve

 

[mentalfloss]

Seems like somebody isn't making a point.

 

[captain morgan]

At the end of the day, the rich DO owe the country that allows them to succeed: in some cases that protection and ability to conduct business was/is purchased with blood of the less fortunate masses. Anyone who doesn't acknowledge that debt doesn't deserve the support that their enterprise ultimately needs, be it from the gov't or the public, in order to attain that success.

Everyone owes something to their country of origin. This notion isn't something that is restricted to the wealthy.

 

[gopher]

It never fails that there will always be people who want to bite the hand that feeds them.

Yeah, sorta like Alaska which gets more Federal welfare than any other state but has as its chief spokesman someone like Palin who says such welfare should not exist. Of course, she never refuses the money when it comes but that never bothers the right wingers.

 

[captain morgan]

Seems like nobody has heard of ....... The Laffer Curve

Seems like someone doesn't want to respond to your info

 

[DaSleeper]

Seems like someone doesn't want to respond to your info

Win some.... loose a few;-)

 

[YukonJack]

mentalfloss, what is so hard to understand about the word: EARN?

When you work for a living, whether you are digging ditches or write intricate computer programs or teach kids with mush in their skulls or drive truck or serve hungry gluttons in an eatery or pretend to serve your constituents, you put in so many hours of your HONEST efforts, and therefore you deserve or in other words EARNED corresponding compensation. If you feel that you did not EARN your pay, obviously you did not put out an honest effort to do so.

There is absolutely NOTHING subjective about it.

I drive on highways. My children did go to school (they are adults now). I appreciate that there is governmental oversight on my prescriptions, that there is an Armed Force to defend my safety and that I can worship in the church, mosque or synagoge of my choice.

So, I have no objection to paying taxes.

But I also am a socialist who believes in EQUALITY. In my opinion, and I assume in yours, we are all equal. So, we all should pay the same EQUAL rate of taxes, whether we EARN $1,000.00 or $1,000,000.00.

Are you willing to let someone decide what is 'fair share'? Would you be just as willing if you were among the top earners?

If I call someone who wants to steal what someone earned and give it so some lazy slug a COMMIE, I feel justified to do so, because I have seen it happen in my old country. And let us remember that if they can take away what you earned, they can take away your frredom. Once again, I witnessed that in the socialist paradise of my old country, and can be witnessed to this present day in places such as Cuba, Venezuela or China.

If the government is powerful enough to give you everything you want, it is powerful enough to take everything you have.

 

[mentalfloss]

mentalfloss, what is so hard to understand about the word: EARN?

When you work for a living, whether you are digging ditches or write intricate computer programs or teach kids with mush in their skulls or drive truck or serve hungry gluttons in an eatery or pretend to serve your constituents, you put in so many hours of your HONEST efforts, and therefore you deserve or in other words EARNED corresponding compensation. If you feel that you did not EARN your pay, obviously you did not put out an honest effort to do so.

There is absolutely NOTHING subjective about it.

That's ridiculous. Of course it's subjective because the corporation decides what your wage should be. Even if they use the best performance measurements - and admittedly there are some really good ones out there depending on the industry - it is rare to find a truly objective metric for putting a dollar value to your work ethic.

And in many cases, we have people who are underpaid as well as people who are overpaid. We can only get better in determining true performance, but right now, some CEOs are unjustly getting trillions and plenty of sweatshoppers are getting pennies from those same CEOs. If you think everyone is earning their fair share right now, that is pretty naive.

 

[YukonJack]

mentalfloss, you seem to be forgetting one thing: Nobody forces anyone to work for a corporation if the employee feels that the compensation offered by that corporation is insufficient.

So, regardless what measurement was used for evaluation, the choice is ALWAYS with the employee.

So, if you were underpaid (and based on your bitter poasts, you must have been and perhaps, still are) it was never the fault of anyone but your own.

And if you are envious of the salaries of the people who obviously are better than you, pull up your socks and do something about it or quit bitching.