Tax The Rich, Hurt The Poor
by Phil T Luker
Thanks to the fiscal-cliff deal (December 2012) which raised an extra $41 in taxes for ever $1 cut from public spending according to American economic commentators and the new Obamacare related taxes, the USA now has a tax code that is more “progressive” than at any time since Jimmy Carter was president. In spite of that Obama's supporters and those who think the Obamessiah is too right wing and Pol Pot would be a better President and continuing to chant their mantra "Tax the rich, tax the rich, in mainsteam media and the cybersphere.
It will be interesting to see what long-term effect that has on household-income trends and poverty in the USA.
Tax increases on high-income people may in theory be redistributive, shifting wealth between rich and poor but such policies, whenever they have been tried, always work in the opposite way to what was intended. This is because we pay taxes individually in the short term, but in the long term we pay taxes collectively. Businesses pass on tax costs to employees and consumers as they do with any other cost. Production and administration costs rise, prices go up and wages are squeexed in order to maintain magins.And it is the most profitable firms in many cases will be the ones that have the most power to pass on tax expenses to consumers or suppliers.
A high-value worker is one who by definition is in high demand. Design engineers earn big money because a lot of intelligence and many years education are needed to develop those skills. The same factors as determine a businesses ability to charge higher prices also enable high value workers to demand higher wages in response to tax increases or other factors that diminish his real income. You see this all the time with financial and tech specialistsin New York or Silicon Valley: Workers in that position simply add taxes and other cost-of-living factors into the starting point of income negotiations to make sure their negotiable income remains around the level they want.
Little intelligence and training are required to hold down a job as a burger flipper, brush pusher of box carrier hence these low paid workers are in a poor position to demand higher wages. Anyone can be trained to push a brush or flip a burger.
Thus it should be clear even to the most rabid supporters of Taxenfuhrer Obama that you really cannot raise taxes on the rich because they have the ability to raise their income correspondingly and as the related prices increases trickle down people at the other end of the scale are being pushed below the breadline.
Tax hikes on the so-called rich may temporarily decrease the private sector’s share of income, but they probably will not decrease the real income of high-wage workers, business owners and investors. Longer term all they do is increase government revenue at the expense of low-wage workers and the unwaged. though it is very difficult to disaggregate the complex relationships between taxes, wages, and prices. But those who say that they are most interested in economic inequality would do well to follow Lane Kenworthy’s example and look at transfers rather than taxes. Means-testing Social Security and other benefits would do more to make the total package of taxes and transfers more progressive than any tax hike. This should appeal to 'progressives' and communists who genuinely want to improve the lot of the needy. I suspect that because most of the "Tax the rich" brigade are driven not by conscience but by hatred of the white, middle class, culturally christian society that spawned them (self hatered if you like) and an addiction topeer approval, any policy that would stand a realistic chance of helping the poorest in society rather than simply punishing "the rich" would be anathema
How George Soros Destroyed The Democratic Party
The Soros Page An omnibus of articles and links concerning the activities of the anti democratic, anti - liberty billionaire george Soros.
Soros Sponsored "Democracy Spring" Launches Program Of Civil Disobedience
So there you have it, the 'radical left' are sponsored by one of the nastiest, greediest corporate capitalists ever, a shameless advocate of global totalitarian government proposed by theelistist socialist group The Fabian society over a hundred years ago and towards which these supporters of 'oligarchical collectivism' have been working ever since.
Panama Papers: British Elite Linked to Corruption, yet Media Only Focuses on Putin
It is clear (and very easy to research) that many Amerocan elitists, including prominent political figures are involved in the Panama tax haven scandal. So why are British news organisations focusin on David Cameeron, the Conservatives and Vladimir Putin? Could it be the Gerge Soros funded group behaind the leaks have another agenda besides exposing (perfectly legal) tax avoidance?
How To Help The Poor - A look at how mainstream politics talks of fairness but penalises poverty
Corporate plundering of the UK purse has to stop – Facebook pays zero tax again
All three mainstream parties in the May 2015 General Election are focusing, as they did last time, on fairness, equality and helping 'the poor'. As their senior spokesmen piously pontificate there will be no trace of irony from either Conservative, Labour or Liberal Democrat while the spout such bollocks, even though they know their economic policies will penalise the poor.
Our finance expert looks at the latest tax avoidance scandal and wonders why the governments financial agencies are always to eager to go after small time tax and benefit fraud and yet year after year turn a blind eye to the blatant criminality of global corporations in their tax evasion techniques.
Inland Revenue a Dysfunctional department that ‘can’t be trusted’ with power to raid bank accounts
Plans to let the taxman take cash out of people’s bank accounts without their permission were condemned by MPs after Rebecca Benneyworth, of the Institute of Chartered Accountants, warned the department is ‘shooting itself in the foot.’ She told the ICAEW conference : ‘Public trust in HMRC would be eroded very quickly if cases come to light where funds have been incorrectly removed. ‘HMRC cannot afford to have public opinion turn against the tax system and those charged with administering it.’Accountants have warned HMRC cannot be trusted ...
Tax the rich is left wing folly
Inflation in the cruellest tax
The Second Wave Of The Debt Tsunami or The Coming Of The New World OrderAs the debt crisis stumbles on in Europe, the U S A and around the third world all politicians and governments can do is keep kicking the can further down the road. Nobody is prepared to admit that the economic model based on perpetual growth funded by personal debt and public spending has failed. So where do we go from here?
Green Policies Will Not Save The Planet But Are Costing Poor Families The EarthPoliticians bleat about the plight of the poor then press on with their clean, green, sustainable energy policies which include stealth taxes to subsidise expensive and inefficient wind turbine and solar panel power generators. Can they not see it is the green agenda that is driving up inflation ...
Interesting Times - Which Way Will The Global Economic Crisis Go In 2010?Which way will the economic crisis go in 2010? Cracks are apearing in the Europen Single Currency scheme and China which has massive holdings of US treasury bonds is making unhappy noises about the dececits being run up by the Obama administration as they pursue loonytoons economic policies...
Money and finance menu
CREATIVE COMMONS: attrib, no comm, no dervs.
KEYWORDS: news, opinion, dailystirrer,