Why in wealth equality important?

[Ponderosa]

Free market systems concentrate wealth in the hands of a few. The masses will not forever tolerate privation in the presence of obscene wealth. Unless wealth (money) is continually recycled back into the lower economic classes, the social order in a free market system will inevitably end in chaos and revolution.

[Phil P]

Originally Posted by lifeexplorer

How is that different? Tax is another form of cost. Increase tax you increase the cost of doing business which leads to job loss.

Tariffs hamper trade. Free trade most always generates more wealth. Taxing income is not taxing trade. It's merely a payment for the benefits you receive through the government. But how do corporations pay for the benefits they receive from the government? Dividend and Corporate tax. No taxes would not necessarily generate more wealth. Should Omaha tax all imports from California? Neither should the US tax imports from Mexico.

[Volobjectitarian]

Originally Posted by Phil P

But you used the example of a tariff, which almost every economist will also agree is bad. As far as taxes on property or income, it's a different story though.

Examine the history of income taxes since the 16th Amendment. Look at tax revenue as a percentage of GDP and read up on Hauser's Law. Then read up on the Laffer Curve. Then go view the actual revenue vs GDP numbers from Office of Management and Budget | The White House historical tables. When you bring up the spreadsheet, add a column for the top marginal tax rates for each year, fill in that column.

What you learn is the fact behind an old saying - you get less of any behavior you tax. So tax investment, hard work and success more, you'll get less of all of the above. Tax them less, you get more. Capital is a form of energy, it follows the path of least resistance.

And if you pay attention to the traditional amount of revenue as percent of money people are actually making, you'll see that no matter what you set the rates too, poor and rich alike are only willing to pay 20-21% max in direct taxes. They'll change their behavior everywhere and always to stay near or below that number.

The largest direct tax on property is the estate tax, and an entire industry exists to help people get out of paying it. Same for property taxes, capital gains, and every other soak the rich tax. Whole areas of accounting and law are dedicated to helping people modify their financial and economic behavior to AVOID PAYING TAXES.

Path...of...least...resistance.

[lifeexplorer]

Originally Posted by Phil P

Tariffs hamper trade. Free trade most always generates more wealth. Taxing income is not taxing trade. It's merely a payment for the benefits you receive through the government. But how do corporations pay for the benefits they receive from the government? Dividend and Corporate tax. No taxes would not necessarily generate more wealth. Should Omaha tax all imports from California? Neither should the US tax imports from Mexico.

Tax on corporate income is a cost. The higher the cost, the less business will be conducted.

There should be no tax on income as it really hinders people. Fair tax is the way to go.

[Hoonose]

A great notion:

What a good economy should look like | Warren Mosler | Gold, Stocks & Forex

[Mircea]

Originally Posted by Ponderosa

Free market systems concentrate wealth in the hands of a few. .

No, it does not. The Free Market is amoral and apolitical.

What did Marx say?

Marx was quite right when he said that Government is merely a platform the bourgeoisie use to advance their own agenda.

The Free Market is amoral and apolitical, but Government is not. It was a special interest group -- the American Hospital Association -- who used your government at both the federal and State levels to gain monopoly control over your healthcare system and give you the nightmare you cherish so dearly today.

The American Federal of Dairy Farmers is big corporate agro-businesses that use government -- specifically the EPA -- to advance their own agenda, by creating regulations that drive smaller dairy farmers out of business.

That has nothing to do with the Free Market, and everything to do with government.

Maybe one day in the distant Future, you will gain the courage to take ownership and responsibility for the problems you permitted to exist and perpetuated through your own apathy and ignorance.

Originally Posted by totsuka

Everyone does not have the same value in the work force.

Yes, they do.

Everyone has the same value.....it is the value of their labor that differs.

Learn and understand the difference.

Originally Posted by winkosmosis

Exactly what I said. Wealth is finite at any given time.

No, that is not what you said.

Wealth is infinite.

Capital is finite.

Originally Posted by winkosmosis

When the 1% funnels more wealth to themselves, that comes at the expense of everyone else's wealth.

No, it is not. Wealth is arbitrary and theoretical.

When you learn the difference between wages/salaries, earned income, unearned income, assets and wealth, then you will stop looking foolish.

Originally Posted by greywar

And mircea continues with his one line responses just saying "you're wrong", and calling names.

That's amusing. If I write more than one sentence, I'm accused of rambling and ranting, but if I write one sentence, I'm accused of trolling.....which you don't even understand the definition.

So...are you going to define "Income Inequality" in objective terms, or continue to dodge and deflect?

Originally Posted by greywar

He confuses earned income with income, and tries to confuse the issue. Again, not contributing anything to the conversation, just trolling.

Wow, you really love Academic Dishonesty....

Originally Posted by greywar

Heres a definition: "money received, esp. on a regular basis, for work or through investments." My apologies if you dont consider investment money to be money you are paid. I DO consider it that.

Originally Posted by Mircea

And you pay FICA/SECA payroll taxes on that?

It is the IRS who defines Earned Income --- wages/salaries, and Unearned Income, not you.

Are you going to answer the question, or dodge and deflect in the greatest traditions of Academic Dishonesty?

No, you'll never answer the question and continue to dodge and deflect, because Unearned Income is a matter of personal choice.

And the whole argument about the non-existent "Income Inequality" is rewarding the people who refused to build wealth by taking from those who did choose to build wealth.

I see you ran away and dodged and deflected your bogus claim that "Income Inequality" causes recessions.

Apolitically....

Mircea