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Some in the GOP seem to love to attack the President for 'creating class warfare' by bringing inequality up in the public sphere. However, like it or not, he's right. We're a very unequal country compared to other developed countries. We have one of the highest GINI indexes in the OECD as a matter of fact. Like I said, this is merely a fact, it's not like he just pulled this stuff out of thin air to **** off the right.
Well, there has always been income inequality, and the history of economics has essentially been the study of the cause and effects of income inequality. You can read a great book, The Worldly Philosophers to attain some understanding in the matter.
The real problem, as I see it, is the growing disconnect between the movers and shakers and their neighbors and employees. It used to be that the CEOs of major corporations lived in the same towns as those who worked in their factories. That is no longer true.
There have been many changes in the fabric of American society over the past 50 years, and most of them are unrelated to right-left, conservative-liberal, republican-democrat.
Agreed. Interesting how "income equality" never "capsized" the economy before until this Administration. Every other President has seemed to hold the economy together/bring it back in the face of "income inequality."
Quote:
Originally Posted by afoigrokerkok
I agree with him that it's a problem. What I don't agree with is that taxing the "rich" or giving the poor a bunch of handouts will solve the problem.
Moreover, it's ironic that this problem has greatly worsened since he's taken office. Why in the world does he have any credibility on this issue?
Some in the GOP seem to love to attack the President for 'creating class warfare' by bringing inequality up in the public sphere. However, like it or not, he's right. We're a very unequal country compared to other developed countries. We have one of the highest GINI indexes in the OECD as a matter of fact. Like I said, this is merely a fact, it's not like he just pulled this stuff out of thin air to **** off the right.
Then why did he allow it to grow to such large proportions the last 6 years? No, this was not going to be addressed with taxes. At best you are talking a small percentage. It could have been addressed by not appointing a Fed chairman and Treasury secretary that were going to see that Wall Street grew at whatever cost was necessary.
Agreed. Interesting how "income equality" never "capsized" the economy before until this Administration. Every other President has seemed to hold the economy together/bring it back in the face of "income inequality."
Not really, smoke and mirrors. easy credit and more debt and people treating their homes as income masked the issue.
Some in the GOP seem to love to attack the President for 'creating class warfare' by bringing inequality up in the public sphere. However, like it or not, he's right. We're a very unequal country compared to other developed countries. We have one of the highest GINI indexes in the OECD as a matter of fact. Like I said, this is merely a fact, it's not like he just pulled this stuff out of thin air to **** off the right.
There's a reason for that... The problem is the progressive federal tax system in the U.S. Because of our highly progressive tax system, the government is overly dependent on making sure the income gap is as wide as possible, and that they don't discourage the revenue producers too much by taxing them at rates that are too high therefore either driving them and/or their capital available for investment out of the country, or causing them to scale back on their productivity and income because there's a tipping point at which they decide they have enough for now and don't need to earn as much thereby significantly lowering their effective tax rate and dramatically reducing federal tax revenue.
I'll let this economist explain it:
Quote:
"[Economist Anatole] Kaletsky argues that over-reliance on progressive taxes creates "a perverse incentive for governments to promote income inequality. Ifthe solvency of the stateand the ability to fund basic services for the poorest people in society depends on the rich getting even richer, it is tempting for even the most progressive politicians to support widening inequalities."
For example, in the U.S., the top 1% earns 18.7% of the income, but pays 35.1% of the federal income tax revenue, roughly twice their fair share which is 4 times what the middle class pays (the middle class pays only about half of their fair share of the federal income tax compared to their share of the income). The problem with our country's progressive tax system is that it creates a perverse incentive for the federal government to enact policies that promote as wide of an income gap as possible in order to maximize tax revenue.
As long as the U.S. has a progressive tax system, the incentive remains to keep the income gap as wide as possible, and this is why: When the top 1% loses income share, the federal government loses twice that much in tax revenue. But when the top 1% gains income share, the federal government consequently gains twice that much in tax revenue. Another way to look at it is that the federal government receives 4 times more income tax revenue per dollar earned from the top 1% than they do from the middle class, so guess whose income they're going to favor and protect.
Furthermore, the countries with more income equality have regressive tax systems, mostly based on VAT, consumption, etc., instead of one's income. Pay close attention to the charts:
Think very carefully about that... It's counterintuitive, and some people get angry when this is pointed out to them, but it actually turns out to be true.
And true to form, Mr. 'tax the rich's' presidency has resulted in EXACTLY what was predicted by the liberal economist quoted above.
Some in the GOP seem to love to attack the President for 'creating class warfare' by bringing inequality up in the public sphere. However, like it or not, he's right. We're a very unequal country compared to other developed countries. We have one of the highest GINI indexes in the OECD as a matter of fact. Like I said, this is merely a fact, it's not like he just pulled this stuff out of thin air to **** off the right.
He's attacked due to the fact that half of the "leaders" in his administration are Wall Street millionaire donors.
Its not really ironic
Obama is a better Republican than Republicans
obama LOVES the wealthiest of the wealthy. He is with them every chance he gets, grabbing money. Unless of course he can isolate and demonize some who don't support his policies.....then he cranks up the rhetoric about how evil they are.
Then why did he allow it to grow to such large proportions the last 6 years? No, this was not going to be addressed with taxes. At best you are talking a small percentage. It could have been addressed by not appointing a Fed chairman and Treasury secretary that were going to see that Wall Street grew at whatever cost was necessary.
Excellent points! Obama himself is a BIG part of the problem.
[quote=InformedConsent;35980593]There's a reason for that... The problem is the progressive federal tax system in the U.S. Because of our highly progressive tax system, the government is overly dependent on making sure the income gap is as wide as possible, and that they don't discourage the revenue producers too much by taxing them at rates that are too high therefore either driving them and/or their capital available for investment out of the country, or causing them to scale back on their productivity and income because there's a tipping point at which they decide they have enough for now and don't need to earn as much thereby significantly lowering their effective tax rate and dramatically reducing federal tax revenue.
For example, in the U.S., the top 1% earns 18.7% of the income, but pays 35.1% of the federal income tax revenue, roughly twice their fair share which is 4 times what the middle class pays (the middle class pays only about half of their fair share of the federal income tax compared to their share of the income). The problem with our country's progressive tax system is that it creates a perverse incentive for the federal government to enact policies that promote as wide of an income gap as possible in order to maximize tax revenue.
As long as the U.S. has a progressive tax system, the incentive remains to keep the income gap as wide as possible, and this is why: When the top 1% loses income share, the federal government loses twice that much in tax revenue. But when the top 1% gains income share, the federal government consequently gains twice that much in tax revenue. Another way to look at it is that the federal government receives 4 times more income tax revenue per dollar earned from the top 1% than they do from the middle class, so guess whose income they're going to favor and protect.
Furthermore, the countries with more income equality have regressive tax systems, mostly based on VAT, consumption, etc., instead of one's income. Pay close attention to the charts:
Think very carefully about that... It's counterintuitive, and some people get angry when this is pointed out to them, but it actually turns out to be true.
And true to form, Mr. 'tax the rich's' presidency has resulted in EXACTLY what was predicted by the liberal economist quoted above.
This problem will never be solved when you have one side that harps on class warfare and the other side still stuck in the 80's with trickle down economics. Our leaders love the tax code because it gives them power to reward and punish. Both parties have fully bought into Marx's manifesto of a progressive tax code and I do not see that ever changing.
Thanks for the links it always good to learn something new
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