Fiscal Cliff Act Keeps the Rich Rich!

Richard L Kaplan, a University of Illinois professor of law, and an expert on taxation and retirement issues tells us that the 'Fiscal Cliff' Act provides increased certainty and lower tax rates than simply letting the Bush-era tax cuts expire. So, the government’s budget deficit will most likely be larger than projected, and a variety of phase-out provisions that both complicate the code and raise effective tax rates were reactivated.

Almost all of the convoluted new rules apply only to people with income of at least $250,000 a year. Yet despite the campaign talk, the act does not address the issue of taxes paid by the most wealthy people. The Warren Buffetts and the Mitt Romneys of the world will see their tax rates rise somewhat, but their rates will still be well below those of less wealthy people because the capital gains tax benefit is largely preserved.

Tax the Rich: a True Fairy Tale

Tax the rich: An animated fairy tale, is narrated by Ed Asner, with animation by Mike Konopacki.

Written and directed by Fred Glass for the California Federation of Teachers—an 8 minute video about how we arrived at this moment of poorly funded public services and widening economic inequality. Things go downhill in a happy and prosperous land after the rich decide they don't want to pay taxes anymore. They tell the people that there is no alternative, but the people aren't so sure. This land bears a startling resemblance to our land!

For more info, www.cft.org. © 2012 California Federation of Teachers

Published on Dec 5, 2012

Tax the Rich!

The 1960 federal tax system was progressive even within the top percentile, progressing from an average tax rate of around 35 percent in the bottom half of the top percentile to over 70 percent in the top 0.01 percent. The super rich were heavily taxed, yet post-war the economy was booming. How was that possible when taxation of the rich, we are told, stops them investing in job creating ventures?

Well, the greater progressivity of federal taxes in 1960 compared with 2004 comes from reducing corporate income tax and estate tax. Corporate tax (taxation of capital income) collected about 6.5 percent of total personal income in 1960 but only around 2.5 percent today. Taxation of capital hit the top income groups because capital is concentrated in that tiny fraction of the population. Estate tax also decreased, from 0.8 percent of total personal income in 1960 to about 0.35 percent today. The decline in these two taxes has given the wealthy percentiles of the population a big boost over the forty years being considered.

Knowing that their capital income was being taxed meant it paid the wealthy in the long run to reinvest in the firm rather than taking income, but building for the future. Taxing the rich is better even for the capitalist. It makes them do what they are supposed to do—invest! Investment creates jobs!

Tax the Rich Every Last Penny Until the Money Banks Stole is Replaced

Too many people believe the political and media propaganda that we have overspent and we must cut back.

Keep reminding them that the banks overspent, thinking mortgage collateral—houses—would rise in value to cover it—in fact, on the assumption that housing prices would rise indefinitely. They spent money they didn’t have, giving themselves massive bonuses for doing it, then, when the housing market collapsed, they told governments, governments!, they were too big to fail, and told governments, supposedly our governments, they had to give them £$trillions from national treasuries—our money collected as taxes—to replace the money the inept bankers had lost on junk mortgages and junk bonds. What did we have to do with it?

We have already paid the banks—the money they were given was not the government’s money, it was our money, entrusted by us to governments for nation wide social use—yet these governments, supposedly our governments are making us pay again, through enforced austerity measures that have nothing to do with us overspending. Tell them to stuff their austerity measures that hit everyone except the super rich, and to get every penny back from the rich leeches who do nothing and deserve nothing of ours.