Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

To Reduce Inequality, Tax Wealth, Not Income
New York Times ^ | November 18, 2012 | DANIEL ALTMAN

Posted on 11/19/2012 6:03:29 AM PST by reaganaut1

WHETHER you’re in the 99 percent, the 47 percent or the 1 percent, inequality in America may threaten your future. Often decried for moral or social reasons, inequality imperils the economy, too; the International Monetary Fund recently warned that high income inequality could damage a country’s long-term growth. But the real menace for our long-term prosperity is not income inequality — it’s wealth inequality, which distorts access to economic opportunities.

Wealth inequality has worsened for two decades and is now at an extreme level. Replacing the income, estate and gift taxes with a progressive wealth tax would do much more to reduce it than any other tax plan being considered in Washington.

When economists try to measure inequality, they typically focus on income, because the data are most readily accessible. But income is not always a good gauge of economic power. Consider a group of people who all have high incomes but differ widely in their wealth. Who’s going to get into the country club? Who’s going to have the money to finance a new venture? Moreover, income data may not reveal the true economic power of people who are retired, or who receive their pay in securities like stocks and options or use complex strategies to avoid taxes.

Trends in the distribution of wealth can look very different from trends in incomes, because wealth is a measure of accumulated assets, not a flow over time. High earners add much more to their wealth every year than low earners. Over time, wealth inequality rises even as income inequality stays the same, and wealth inequality eventually becomes much more severe.

This is exactly what happened in the United States. A common statistical measure of inequality is the Gini coefficient, a number between 0 and 100 that rises with greater disparities.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy
KEYWORDS: wealthtax
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-62 next last
To: reaganaut1

The Slimes has really jacked up the liberal, progressive redistribution fight since the election.


21 posted on 11/19/2012 6:29:18 AM PST by immadashell
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1

Actually that might not be a bad idea. It would shut up The Gates and Warren Buffet and George Soros for while...either that or drive them out of the country. The reason why all these billionaires claim to be for higher income taxes is because none of them pay any income tax. They pay Capital Gains. The higher the income tax is on high earners the more exclusive their little club becomes and the harder it is for anyone else anywhere to attain their level of wealth.


22 posted on 11/19/2012 6:29:27 AM PST by pgkdan (We are witnessing the modern sack of Rome. The barbarians have taken over.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1
To Reduce Inequality, Tax Wealth, Not Income

Tax CRIME! (not income)

23 posted on 11/19/2012 6:29:46 AM PST by ROCKLOBSTER (Celebrate "Republicans Freed the Slaves" Month)
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1
To Reduce Inequality, Tax Wealth, Not Income

What's so great about reducing 'inequality'?

Seriously ... this is pure marxist class warfare ... steal from the rich and give to the poor party members. "Inequality" in outcome is the right and necessary result of inequality in effort.

24 posted on 11/19/2012 6:30:14 AM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1

The whole premise of the article is Marxist, as several have already noted.


25 posted on 11/19/2012 6:32:25 AM PST by EternalVigilance (America's creed: Our rights come from God, not men. Government exists to secure those rights.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Arm_Bears
It would be reasonable to pretax the estates of those like Buffett and Gates who protect their assets from government confiscation by funding tax exempt foundations. Both those guys have promised a combined fortune in excess of $100 billion. If their assets were liquidated, the capital gains due would be enormous. Upon their deaths, there would be further shares for government coffers

Perhaps a smart plan would be for government to require a pre-payment of the value of the foregone capgains and estate taxes to be remitted prior to establishing the tax exempt foundation. At least we'd be able to make honest men of those vocal tax advocates.

26 posted on 11/19/2012 6:33:19 AM PST by Sgt_Schultze (A half-truth is a complete lie)
[ Post Reply | Private Reply | To 9 | View Replies]

To: ArrogantBustard

Wow, good catch...

What is the virtue or reducing inequality or equalizing outcomes. Inherently, with such a goal, you’ll reward bad decisions and slothful behavior while punishing good decisions and diligent behavior.

There’s no way around that.


27 posted on 11/19/2012 6:33:37 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
[ Post Reply | Private Reply | To 24 | View Replies]

To: reaganaut1

We need to stop taxing production as well.

I wonder if any other nation taxes inventory on the factory floor the way we do?


28 posted on 11/19/2012 6:35:19 AM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1
Say you have two brothers. One spends wisely, invests, only borrows to buy things which could make more money and generally lives frugally. The other spends his income (and any money he can borrow) on wine, women and song and lives a life of general debauchery. Which one should the government tax and therefore discourage his activities? It's like killing the fatted calf for the prodigal son when he comes back to the house and demands his brother's inheritance too instead of contritely begging for any work.

Tax consumption, not income or property.

29 posted on 11/19/2012 6:37:28 AM PST by KarlInOhio (Big Bird is a brood parasite: laid in our nest 43 years ago and we are still feeding him.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1

any sentient being that takes ten minutes to think this one through, will simply laugh. Just how would the government liquidate the “wealth”, so they can redistribute it? Or would the government just make in-kind transfers? Either way, the transactions costs would eat up all of the hoped for revenue, and the assets would no longer be productive. The Left assumes that incentives mean nothing, when they mean everything.


30 posted on 11/19/2012 6:37:46 AM PST by cdcdawg
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cincinatus
This will never happen -- the Kennedys and the Pelosis and the Rockefllers and the Heinz-Kerrys will never permit such a thing to pass. Only the suckers who actually work for a living are to be plucked.

The wealth of the elites will be shielded in foundations and 501(c) "charitable" organizations like the Rockefeller Brothers Fund.

As an example, I hadn't know until now that the NFL is explicitly exempt for corp taxes under 501(c) sub-paragraph 6.

If you really want to make a dent in the national debt, withdraw the tax-exempt status of 501(c) organizations. Of course, the politician who tries that should ensure his life insurance is fully paid up.

31 posted on 11/19/2012 6:39:28 AM PST by PapaBear3625 (political correctness is communist thought control, disguised as good manners)
[ Post Reply | Private Reply | To 3 | View Replies]

To: MrB

When dealing with the leftists in Big Media, I find that one should always look for the hidden assumptions and covert premises. They’re not content to control the “what, where, when, and how” of the national conversation but must control the “why” as well.


32 posted on 11/19/2012 6:40:12 AM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: reaganaut1

So, is this not a method of taxing our IRAs and other pension funds? Those of who think it would be nice to hit the Buffets and other Lib-Dems, need to realize that this could easily be extended to home values as well!

Very ugly!


33 posted on 11/19/2012 6:41:06 AM PST by SES1066 (Government is NOT the reason for my existence but it is the road to our ruin!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1

As long as they start with Bruce Springsteen and Jay-Z, I’m good with it.


34 posted on 11/19/2012 6:41:44 AM PST by Jim Noble (Diseases desperate grown are by desperate appliance relieved or not at all.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ArrogantBustard

Oh, yeah, the Proverbs state “don’t answer a fool in his folly”, but to question the premises.

I’m fully aware of that and still started “wrestling with the pig” with arguing what kind of tax would be better.


35 posted on 11/19/2012 6:43:06 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
[ Post Reply | Private Reply | To 32 | View Replies]

To: reaganaut1

Not that the Constitution matters to these people, but the 16th Amendment only specifically authorizes an income tax. Wealth taxes would have to be apportioned by states. Also taxing capital is one of the worst ideas ever.


36 posted on 11/19/2012 6:45:42 AM PST by garbanzo (It's the end of the world as we know it and I feel fine)
[ Post Reply | Private Reply | To 1 | View Replies]


37 posted on 11/19/2012 6:49:47 AM PST by RedMDer (May we always be happy and may our enemies always know it. - Sarah Palin, 10-18-2010)
[ Post Reply | Private Reply | View Replies]

To: reaganaut1

To decrease inequality, tax the political ruling class elite for the benefits that they voted for themselves. Cost of living pay raises. Golden pension plans and health insurance plans.


38 posted on 11/19/2012 6:50:42 AM PST by I want the USA back
[ Post Reply | Private Reply | To 1 | View Replies]

To: reaganaut1

From “You did not build it!” to “You do not own it!”


39 posted on 11/19/2012 6:52:40 AM PST by First_Salute (May God save our democratic-republican government, from a government by judiciary.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Graewoulf

Good points. We should not concede that the goal is to remove inequality. The goal is to improve everyone’s standard of living


40 posted on 11/19/2012 6:53:16 AM PST by plain talk
[ Post Reply | Private Reply | To 18 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-62 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson