patrick.net

Meccos says

Do you consider the poor who do not work and collect food stamps as one of those who produce nothing? If so they are on your radar as well?

Radar for taxes? You aren't making any sense. Unless of course you are heading off into welfare queen arguments. You are attempting to split hairs, because you can't bring yourself to admit the core thesis is correct. The rent-seeking ultra-rich have perverted the economy for their own ends. It will end when all the real wealth is in their hands. We used to have some mechanisms to ensure permanent dynasties were avoided, but that is being eroded. Whether Shaq collects a few million or not is irrelevant "lost in the noise" bullshit that only an idiot would bother with.

As Chris Rock said: Shaq, he's just rich. The guy who writes his paycheck, he's WEALTHY!

Vicente says

Radar for taxes?

If you cant understand figure of speech, then that is your problem.

Vicente says

The rent-seeking ultra-rich have perverted the economy for their own ends.

Why is it that you and the few others on this thread cant seem to wrap your head around the idea of differentiating those who seek to exploit others for gain and those who do not. Again for the millionth time, you and professor have the fundamental problem of being unable or unwilling to differentiate those "rent seekers" with the rest of the "wealthy". Not everyone who is rich is a rent seeker. Envy is an ugly thing.

The Professor says

The fed is creating money out of thin air stealing the labor of the masses.

I didnt see this comment until now. I 100% agree with this and I will be the first person to tell you that what the fed is doing is BS. Like I said, I also have issues with those who steal wealth from others, but it is a far stretch to portray all of the rich with what the fed does. In fact I would argue that the fed creating money out of thin air steals from the majority of those who you consider to be "rich" as well.

The Professor, in essence, is saying once you reach XXX dollars, it turns from "making more" to "exploitation".

Only the Diaper Doper Babies get to set that threshold....

Meccos says

The Professor says

Meccos says

BTW what is the "UBER" rich? Lets first define that.

People that already make more than they, their children, and grandchildren can ever spend yet still want to make more by exploiting the working class.

If one's goal is to make more and more, is there anything wrong with that? As I mentioned previously, you need to make a distinction of those who want to make more and more and those who exploit

Why do you not consider 'providing rental space' a service?
Is it not better than living under a bridge??

The Professor says

SoftShell says

The Professor, in essence, is saying once you reach XXX dollars, it turns from "making more" to "exploitation".

Nope. Not what I said or meant.

If you can make a product or provide a service that is useful to humankind you deserve to be handsomely rewarded.

Meccos says

Again for the millionth time, you and professor have the fundamental problem of being unable or unwilling to differentiate those "rent seekers" with the rest of the "wealthy".

If you have great wealth, you are probably a rent-seeker. Look at the Forbes richest list, it's full of 'em.

In any case I have no "envy", I merely demand sensible tax policies regarding them. Thanks for caring!

I suppose if you are going to paint me as a relentless "rich hater" then you are a relentless unpaid "class warrior" who thinks everyone else is a taker, moocher, welfare queen, or a socialist. Large majority of Americans believe the wealth gap needs fixing, so you'd better get used to being in the minority.

http://www.mybudget360.com/wealth-inequality-rivals-the-months-prior-to-the-great-depression-america-wealth-distribution/

What is with the new generation and such a lean toward the failure of socialism.

So it would seem you are for landlords/investors that purchase homes outright, then rent them out at the going rate for the location....

No use of bank money needed....

The Professor says

The Professor says

SoftShell says

Why do you not consider 'providing rental space' a service?

I do.

I have mixed feelings on landlords. Some are good; they provide a service by maintaining property and letting it out to people who for one reason or another do not want to "own".

And then there are the investors. They use other peoples money and prevent young familys from buying a home. They then turn around and rent the home to the priced out young family for more rent than they would have paid in mortgage.

The Professor says

SoftShell says

The Professor, in essence, is saying once you reach XXX dollars, it turns from "making more" to "exploitation".

Nope. Not what I said or meant.

If you can make a product or provide a service that is useful to humankind you deserve to be handsomely rewarded.

If so then you need to make this distinction rather than just generalizing the rich which is what happens on this form alll the time. The problem is that you and others are not very clear on this distinction and generalize all the rich as rent seekers.

Define specifically who these rent seeking exploiters are, rather than generalizing them as the rich and I guarantee you that you will have less people oppose your views

The Professor says

Meccos says

Define specifically who these rent seeking exploiters are

You want names?

No but if you are making accusations about a group of people then I would think you can be more specific than blaming "the rich". After all "the rich" is a very ambiguous term and quite arbitrary as we have all seen on th is forum.

I suspect the truth of the matter is that most rent seeking was/is being done now in the name of retired working people unbeknownst to and uncontrolled by them, through pension funds and annuities via MBS that were created by crooks to exploit both home buyers and pensioners. Now the poor fed has to buy all those homes with their keyboard to save the old folks. You couldn't make this stuff up.

The Professor says

How much wealth and power does an individual need?

That's a dumb question. Have you ever heard of a term "Hoarding?"

When FEDs implemented QE, we should have increased the tax. When you make that much US$, we should have known that most of it will just go to the top 1%. And top1% will use that money to extract more money from the rest.

I am surprised to realize that not many people know the phrase "Mo money gets Mo money."

The Professor says

Nobody says

Have you ever heard of a term "Hoarding?"

I do it myself. I call it investing for retirement, but not by exploiting my fellow!

So. What is it that you do differently from the top 5% that you criticize? Please tell me specifics and also evidence to back this up. And I don't want to hear about the billionaires since they are not the 5% nor even the 1%...but rather the .01%.

There's not a single form of investment that, when broken down into individual components, cannot be traced back to some kind of human exploitation...

Maybe what you really mean is the 'degree' of human exploitation..

The Professor says

Nobody says

Have you ever heard of a term "Hoarding?"

I do it myself. I call it investing for retirement, but not by exploiting my fellow!

why don't we tax the peasants?

How can you achieve this without someone being exploited?

The Professor says

SoftShell says

Maybe what you really mean is the 'degree' of human exploitation..

Nope. From the slave labor in China to the renter in America ALL exploitation should be stopped.

Humankind should be able to get together and solve the worlds problems.

Call me naive, ignorant, or stupid, I prefer "Idealist".

Yep. This is why I support having a wealth tax instead of an income tax. The most practical form of wealth tax is the Land Value Tax because you cannot hide real properties.

If government is the protector of wealth, tax can be seen as a form of insurance premium.

All morality arguments of taxation are based on the false assumption that equality is a virtue. This could be an artifact of democracy. In the end, we will get mediocrity.

No. We are NOT equal. Even if we are all equal, some will always be more equal.

It is either men exploiting men, or the other way around.

Equal sharing of misery is not a value nor a good goal to achieve.

Peter P says

Yep. This is why I support having a wealth tax instead of an income tax. The most practical form of wealth tax is the Land Value Tax because you cannot hide real properties.

If government is the protector of wealth, tax can be seen as a form of insurance premium.

I agree!

A 2% annual tax on wealth alone could replace all income tax, all sales tax, and all other taxes.

2% is not too much to ask in return for hiring armed peasants (police, judicial system, national guard) willing to shoot at unarmed peasants to protect 98% of your wealth.

Especially if your investment income exceeds 2%.

Since in the past generation the US has slowed in R&D and manufacturing, the effects of the contributors kicking up to the rim of Champagne glass are the root cause of the malaise, not the wealthy.....

The Professor says

How about we take 10% a year of everything over $10,000,000 in accrued wealth from the upper class? When their wealth fell below ten million they would still have enough to live fairly comfortably.

The problem isn't that some people have vast amounts of wealth. The problem is how those people got those vast amounts of wealth. The richest in our society become that rich by stealing wealth from the rest of us. The theft is legal, because the wealthy make the laws, but it's theft nonetheless. The problem is that their parasitic activities impoverish the rest of us.

For the few wealthy that made their money by inventing something or entertaining, those rich do not impoverish us and so there is no reason to begrudge them their riches. Those few wealthy actually increase our wealth as well.

But for the vast majority of the ultra-wealthy, their wealth comes from zero-sum games that cost the rest of us. The answer isn't to tax them. Under your proposal, those people would simply wastefully spend all money they acquire over the ten million on absurd luxuries. No, the answer isn't to tax them. The answer is to prevent those parasites from siphoning off our wealth in the first place. Those parasitic wealthy should not even exist in the first place.

@Dan8267

I 100% agree with your post above...

Meccos says

If one's goal is to make more and more, is there anything wrong with that?

Is snorting more and more coke a good idea? Could there be an addiction here?

Dan8267 says

The problem isn't that some people have vast amounts of wealth. The problem is how those people got those vast amounts of wealth. The richest in our society become that rich by stealing wealth from the rest of us. The theft is legal, because the wealthy make the laws, but it's theft nonetheless. The problem is that their parasitic activities impoverish the rest of us.

That's our government, an old boys club that takes care of the old boys club taxing, stealing, plundering the working people. That's the real welfare state of America.

They work for a few years and get their salary for a lifetime by taxing the rest of us to pay for their lavish lifestyles.

The Professor says

Agreed. But how?

There are a number of structural changes that we can make to eliminate financial parasitic behavior. No single change will solve the problem, and the fight is to a certain extent an arms race, but here are a few changes that will significantly improve things and greatly reduce parasitic behavior.

Change 1: Captain Gains Tax

Capital gains on anything should be set with the following formula.
taxRate = 1.00 - 0.01 * floor(numberOfMonthsCommodityIsHeld)

This simply formula would have prevented the Dot Com Bubble, the Housing Bubble, and the Second Great Depression. It would also prevent most financial parasitic behavior including the extremely dangerous practice of microtrading, holding assets for nanoseconds in order to manipulate the market.

The Goldman Sachs of the world would not be able to do nearly as much damage if this single change were made.

Change 2: Enforce Anti-Trust Laws

Any company that is too big to fail is, by definition, too big to exist. All banks that got the $16 trillion in interest free loans should be nationalized and all profits from them should go back to paying back the tax payer and dollar holder via paying off the national debt and offsetting the inflation of the past 10 years with an equal amount of deflation. These banks can be denationalized by liquidating them and selling the assets to smaller, more responsible banks.

Any other company that is too big to fail or gets too big to fail should be broken up into smaller companies. Company mergers/buyouts should not be allowed if a company has more than 1% of the market share of any industry.

Change 3: Tax the land, not the house.

A 6% tax on the value of land would stop parasites, including banks and real estate investment firms, from hording land and preventing its productive use.

I personally don't believe in taxing the buildings as that discourages production of high quality, valuable buildings, but if buildings are to be taxed, they should be taxed equally as opposed to the policies in states like Florida that tax younger people more than older people.

Change 4: Eliminate all deductions from all income taxes.

Do not lower the tax rates, just eliminate all deductions. Do not replace an income tax with a sales tax.

Eliminating these deductions will prevent the richest corporations and individuals from paying an effective lower rate than the middle class.

Change 5: Apply income taxes after capital gains taxes rather than instead of it.

Any income from capital gains should be taxed at income tax levels after the capital gains tax has been applied. This will prevent capital from devouring everything like a black hole. Right now, capital makes itself necessary by sucking all available capital. It's a positive feedback system that benefits those who do not have to produce anything while enslaving those who do produce wealth, the middle class.

FortWayne says

They work for a few years and get their salary for a lifetime by taxing the rest of us to pay for their lavish lifestyles.

How would you feel about a nationwide 1.5% and 25 cents per transaction sales tax?

Dan8267 says

How would you feel about a nationwide 1.5% and 25 cents per transaction sales tax?

I like that idea, but...

Would that replace existing taxes in CA? Because here we have some really high costs of doing business. I'm not talking about high sales taxes or income taxes alone, I'm talking about all the other fees and levies that make hiring someone full-time almost impossible without going bankrupt.

It's why we all hire Mexicans out here, cost of hiring in CA is tremendous.

Dan8267 says

Enforce Anti-Trust Laws

Any company that is too big to fail is, by definition, too big to exist. All banks that got the $16 trillion in interest free loans should be nationalized and all profits from them should go back to paying back the tax payer and dollar holder

I'd like to see that, but it cannot happen while corporations can continue to buy politicians.

The fundamental problem is our campaign finance system, where our supposed representatives actually represent those who give them the money to get elected.

And why should any of our elected representatives want to change the system that got them elected? That's the corner we're in.

Theodore Roosevelt recognized this back in 1912:

"To destroy this invisible government, to dissolve the unholy alliance between corrupt business and corrupt politics is the first task of the statesmanship of the day."

http://teachingamericanhistory.org/library/index.asp?document=607

But the problem has never been fixed. How can we really fix it?

Why don't we take this one step further? Why stop with the US? Do you realize that as American wage earners most of us make more than 90% of the rest of the world? Is this really fair? Did we really EARN this money? Wouldn't it make more sense to just transfer most of our wages to the rest of the world so we can all live on world average salaries. Most of the world hates us, not because of our rich, but because of our rich wage earners. Think of the goodwill wage redistribution will bring our country. not to mention the peace, freedom, and opportunity across the globe. We've got to stop being selfish and start thinking about other people.

FortWayne says

Dan8267 says

How would you feel about a nationwide 1.5% and 25 cents per transaction sales tax?

I like that idea, but...

Would that replace existing taxes in CA?

No, it would just be a tax to ensure lavish lifestyles for a few people. It would not be used to provide any service.

I'd like to see that, but it cannot happen while corporations can continue to buy politicians.

The fundamental problem is our campaign finance system, where our supposed representatives actually represent those who give them the money to get elected.

All true. And that is why it will take some kind of revolt, violent or not, from the masses to stop this parasitic system.

The only non-violent solution I can think of is for all the pissed off people to start a new political party, to get that party elected in local government, and work up the chain of power to the senate and house. It's impossible now to change Washington without direct force from the outside. You cannot change the system from within the system because the system is built to be a stable stronghold for parasites.

The Professor says

Dan8267 says

There are a number of structural changes that we can make to eliminate financial parasitic behavior.

Double like! Awesome post!

Now, how can we get the oligarchy to agree to these changes?

From the bottom up, not from the top down.

Trifle says

Why stop with the US?

Because that is where our sovereignty stops. I would not favor a world government. Too much power in too few hands.

Trifle says

Do you realize that as American wage earners most of us make more than 90% of the rest of the world?

Yes. Do you realize that this statistic is entirely meaningless? The purchasing power of a dollar bill in China, where most of the laborers are, is far more than the purchasing power of the same dollar bill in your town or city. As such, comparisons of wages between societies is utterly meaningless and misleading.

Now, comparing the quality of life can be done in a meaningful way, and America's quality of life is better than these developing nations, but it would take far more drastic measures for us to positively affect that quality of life. Here is one way to do so.

Set the total compensation an executive can receive in one year to the median total compensation received by his employees. Include overseas employees, contractors, etc. as employees for this purpose.

This completely changes the game. Now the executives cannot exploit the workers because doing so diminishes his own income. The executive still has motivation to maximize per employee production since doing so maximizes his income. But the executive has no motive to use employees for non-productive uses or to reduce the labor force. Economies of scale will ultimately determine how many employees are hired for a particular company.

Of course, the big question is how could one pass or enforce such a measure when the politicians are already the whore slaves of these very executives?

As long as I can throw m&m's at the heads of the peasants whilst I dine on bleu cheese encrusted filet mignon ....i'm good to go.

Dan8267 says

The Professor says

Dan8267 says

There are a number of structural changes that we can make to eliminate financial parasitic behavior.

Double like! Awesome post!

Now, how can we get the oligarchy to agree to these changes?

From the bottom up, not from the top down.

SoftShell says

As long as I can throw m&m's at the heads of the peasants whilst I dine on bleu cheese encrusted filet mignon ....i'm good to go.

The peasants like M&Ms, so I doubt anyone would complain.

I'd like to see that, but it cannot happen while corporations can continue to buy politicians.

This is in essence, the root of the problem. As long as politicians can be bought, there will be no solution.
Although this discussion stated out with the argument for taxing "the rich" I am glad what a few here have eloquently made the distinction between "the rich" and "the parasitic rich or the exploiting rich", as these are completely different.
As many of you have seen from my previous post, I am a staunch defender of "the rich". If they earned their wealth, in my opinion, they deserve to keep it. However I do not defend people who exploit and practice parasitic lifestyles. I would challenge everyone here to make this distinction as it is important. Stealing is stealing, whether it is the rich stealing from the poor or the poor stealing from the rich...

Meccos says

So the executives would receive less than half their employees?

If they executives don't like that, they can always increase their income by mining the ore themselves, or spending 70 hours a week writing code, or manning the french fryer. I'm sure we can find some worker who would gladly take the place of the executive. Pay isn't the only difference between the jobs of executives and their employees.

But even if we adjusted the executive pay to say 1.5 or 2.0 times the median income, the principle is the same. There is no justification for executive pay being 100+ times the median wealth producer pay. Executives are, at best, overhead. They produce nothing.