Saturday, September 29, 2012

Steal From The Rich, Give Back To The Poor


The Romney/Ryan Budget increases taxes on the middle class as their relentless quest to eliminate the middle class has resulted in yet another proposed drop in taxes for the rich, so that a tax hike for the rest of us becomes mandatory.

As Vice President Biden said in a speech to a retirement community in Florida, "Notice they will not name a single program, not a single thing, and why?  Well, they're doing it because they have to...And here's the reason they have to: They cannot possibly, cannot possibly continue and add to the tax cuts for the super wealthy unless they eviscerate the rest of the budget.”


It's time to take the first step in criminalizing Conservatism by restoring the TRUE Progressive Tax system and moving the top rate to 72% or more as President Kennedy implemented from the Eisenhower years of 90% *(see Slate article, below), as well as imposing an ad valorum tax on the rich to restore the monies stolen from the 98% since Reagan started the process of robbing from the poor and middle class to give to the rich.

They took it and it's time to get it back - with interest - and to make sure the greediest of the rich and their Conservative leaders and propagandists can never take it again.

As even readers of Agatha Christie and P.G. Wodehouse are reminded so frequently, Great Britain's post World War II policies of true progressive taxation finally brought down the aristocracies and their vast wealth and gigantic estates to a semblance of equal footing compared to their previous power as centuries of struggle after the signing of the Magna Charta finally ripened to fruition. (Pic of Gates"s estate, etc.)

Take some time to learn about tax policy in England:

http://histclo.com/essay/war/ww2/cou/eng/w2e-ar.html

http://www.hmrc.gov.uk/history/taxhis7.htm

http://m.guardiannews.com/news/datablog/2012/jun/27/century-income-inequality-statistics-uk?cat=news&type=article

And for a technical view of the highest marginal rates:

http://www.ritholtz.com/blog/2011/07/tax-rates-deviations-from-average/


*For economic geeks, from Slate's article, "JFK, the demand-side tax cutter":

"When Kennedy ran for president in 1960 amid a sluggish economy, he vowed to 'get the country moving again.' After his election, his advisers, led by chief economist Walter Heller, urged a classically Keynesian solution: running a deficit to stimulate growth. (The $10 billion deficit Heller recommended, bold at the time, seems laughably small by today's standards.) In Keynesian theory, a tax cut aimed at consumers would have a 'multiplier' effect, since each dollar that a taxpayer spent would go to another taxpayer, who would in effect spend it again—meaning the deficit would be short-lived.

"At first Kennedy balked at Heller's Keynesianism. He even proposed a balanced budget in his first State of the Union address. But Heller and his team won over the president. By mid-1962 Kennedy had seen the Keynesian light, and in January 1963 he declared that 'the enactment this year of tax reduction and tax reform overshadows all other domestic issues in this Congress.'

"The plan Kennedy's team drafted had many elements, including the closing of loopholes (the 'tax reform' Kennedy spoke of).Ultimately, in the form that Lyndon Johnson signed into law, it reduced tax withholding rates, initiated a new standard deduction, and boosted the top deduction for child care expenses, among other provisions. It did lower the top tax bracket significantly, although from a vastly higher starting point than anything we've seen in recent years: 91 percent on marginal income greater than $400,000. And he cut it only to 70 percent, hardly the mark of a future Club for Growth member.

"Yet the Kennedy-Johnson team saw the supply-side effects of the bill as secondary, if not incidental, to its main goal of prodding near-term growth. 'The tax cut is good for long-run growth,' said James Tobin, another economist on JFK's team, 'only in the general sense that prosperity is good for investment.' The immediate boost to the economy was the main goal. In fact, Nixon's economic adviser Herb Stein noted that the 1964 plan led to a diminished output-per-person-employed—a fact that could argue against the supply-side tenet that lower marginal rates would unleash the productivity of workers deterred from working harder because of overtaxation.

"Many liberals disliked Kennedy's plan on grounds of equity. Leon Keyserling, an economist who had served Harry Truman, lamented that the richest 12 percent of Americans would get 45 percent of the benefits. Michael Harrington, the scholar of poverty, called the plan 'reactionary Keynesianism.' The AFL-CIO came out against it.

"That Kennedy had to rebut charges of unfairness from his left flank seems to lend credence to the supply-siders' analogy with Bush. But that analogy omits the additional fact that Kennedy's toughest opposition came from business. Corporate America distrusted Kennedy, especially after he took on the steel industry in 1962 for raising prices. A June 1962 poll showed that 88 percent of businessmen viewed him as hostile to them. Motivated by a mixture of traditional balanced-budget conservatism and personal distrust, many of them voiced opposition to the cuts.

"Kennedy took pains to sell the package to the business world. Departing from the more representative rhetoric of his June 1962 Yale commencement speech, he deliberately dressed up his program in language he thought business would like when he addressed the New York Economic Club in December 1962. He noted that the then-current system 'reduces the financial incentives for personal effort, investment, and risk-taking.' As his speechwriter Ted Sorensen later explained, 'It sounded like Hoover, but it was actually Heller.' According to historian David Shreve of the Miller Center for Public Affairs—on whose excellent work I've drawn here—it is from this December 1962 speech that the supply-side appropriators of the Kennedy mystique usually cull their quotations. They skirt the ample documentary evidence showing that the pro-business rhetoric of the Economic Club speech was largely strategic."


It's time to take our hard-earned money back!

Conduct tax policy with job policy by: making sure that employers impose pay reductions, firings or layoffs, and keep overtime and bonus rules frozen; make the part time and 1029 employment rules tighter; ban foreclosures due to tax increases for those making less than $250,000 and restore the interest deduction that Reagan killed for them also; and no outsourcing of jobs while a qualified or educable American can be hired.
--------------------------------------------------------------------------------------------------------------

"Genius may have its limitations, but stupidity is not thus handicapped."

Elbert Hubbard (American writer, publisher, artist, and philosopher. founder of
the Roycroft artisan community in East Aurora, New York, an influential
exponent of the Arts and Crafts Movement, wrote Little Journeys to the
Homes of the Great and the short story A Message to Garcia. He and his
second wife, Alice Moore Hubbard, died aboard the RMS Lusitania, which was
sunk by a German submarine off the coast of Ireland on May 7, 1915. 1856 –
 1915. From Wikipedia.

--------------------------------------------------------------------------------------------------------------