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Logic and Taxes

Do you agree with this article?

  • Yes, I think the rich should be taxed more.

  • No, I think they should be taxed the same or less.

  • I'm not sure.


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This always cracks me up. How do the wealthiest few have more representation than the vast majority?

In the US everyone(generally) gets a vote and therefore equal representation.

They have more representation because they have more money. Being able to vote means nothing when somebody else can bribe your elected officials.
 
Yes but what about when the 10th man, through totally legal loopholes and means, pays almost nothing at all, leaving the bulk of the bill on those men in the middle?

Or when the 10th man wants to buy a cheap and common barfood, pretzels, for $1. Pretzels are a requirement really. Who goes to a bar and doesn't get pretzels? How can you drink beer and not have pretzles? It's ridiculous! He has plenty enough money to provide pretzels for the entire group just on his 16% savings on the beer tab alone, but everyone is on their own for food. Unfortunately men 1-4 cannot afford pretzels, as they don't have the money whatsoever. The fifth man could buy them with his new break on the beer, but then he'd have nothing left. That's not very smart, so he also skips the pretzels. Now you have half the men without the basic requirement of pretzels!
 
"And almost all working poor already live paycheck to paycheck. Me and both of my parents (who are both attorneys) are living check-to-check, barely able to afford groceries in between paychecks."

Maybe your parents should sell a BMW or the vacation home. I find it very hard to believe two attorneys are living paycheck to paycheck, seeing how much my family pays to our attorney each year.

This sounds like a rant from a person who was raised in an upper middle class family and is pissed because the world was not handed to him.
 
It is not one of the option in the poll but I think we should be taxed ONLY on what we buy, no other taxes, that IMO would be fair.
 
Exactly. Some politicians seem to think that it is THEIR money to spend as they see fit.

I wish I were rich enough to be in the top bracket - but I'm not. However, I do not begrudge those folks. For me the flat tax is the fairest tax with a certain amount of those in the lowest bracket who don't earn enough to pay much in the way of taxes.

One would get the impression from reading some of the above comments that lower income wage earners are supporting the high income earners when this is simply not true. In fact, the top 25% of all wage earners pay 83% of all federal income taxes with the top 1% paying an incredibly high 35%. The bottom 50% of wage earners pays only 4%. Tax brackets range from 10% all the way up to 35%. In fact, about 47 % of citizens paid no federal income taxes at all for 2009 because their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. Credits for low- and middle-income families have grown so that a family of four making as much as $50,000 owed no federal income tax for 2009, as long as there were two children younger than 17 in the household.

In my opinion, high income tax earners - which unfortunately I am not - already pay more than their share.

Almost all of your numbers are misleading. You correctly point out that you are talking about federal income taxes, but the numbers ignore federal "payroll taxes," i.e., Social Security (FICA) and Medicare. FICA taxes hit lower income people much harder than higher income people because there is a fairly low cutoff on the income that is taxed. The numbers also ignore gasoline and other federal taxes that are included in the purchase prices of various goods and the prices of services from businesses that pay such taxes. Those taxes also hit lower income people harder because they spend a much higher percentage of their incomes on goods and services. The numbers also ignore state and local taxes, largely sales taxes, which also hit poor people harder as a percentage of total income. Finally, those of us "lucky" enough to be footing the bill for federal income taxes on our wages and salaries pay a much higher rate than people who get large incomes from capital gains and dividends.

In my opinion, the high income folks were paying closer to their fair share in the 1990's, when the economy was doing well, rich folks were doing well, and jobs really were being created. The idea that low taxes on rich folks will create jobs has been disproven throughout the period of the current, extended, "temporary" Bush tax cuts.
 
I'm a flat tax man myself, I believe everyone should pay the same percentage with possibly some exemption for the very lowest incomes (say less than $20,000 single $30,000 joint) and no deductions, credits etc. I also believe money should only be taxed once as opposed to multiple times.
 
Bar Stool Economics

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100 and if they paid their bill the way we pay our taxes, it would go something
like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.)

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20." So drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free...but what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?'. They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each
end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before...and the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

"I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man," but he got $10!"

"Yeah, that's right," exclaimed the fifth man who was now paying nothing, along with the first four. "I only saved a dollar, too. It's unfair that he got ten times more than I!"

"That's true!!" shouted the seventh man. "Why should he get $10 back when I got
only two? The wealthy get all the breaks!"

"Wait a minute," yelled the first five men in unison. "We didn't get anything at all. The system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

This Sir, may be the most plainly written example of how our tax system works I have ever seen. It is pure genius, know if you could just get people to read it. Unfortunately most won't or will find an emotionally driven reason that its still not fair.

Jay
 
They have more representation because they have more money. Being able to vote means nothing when somebody else can bribe your elected officials.

Perhaps thats how Government Officials in Australia are but I put a little more trust in ours.

Jay
 

Yup, thats how the system works. Everyone from Acorn to Chevron to SEIU to Smith & Wesson, pays lobbyists. Some lobbyists represent the poor, some represent the rich, some represent churches, some represent enviromentalists.

I think this is probably a more telling list. http://www.opensecrets.org/lobby/lobby_contribs.php?cycle=2010&type=P

Top 10
Dem=6
Rep=3
IND=1

Second 11-20
Dem=7
Rep=3

Third 21-30
Dem=9
Rep=1

But again this stuff changes every election. When Republicans are in power then they will have more people in the Top 30 getting lobbied. If we ever get a solid viable Third Party, they will have people on the list. Thats how is works.

Jay
 
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Yup, thats how the system works. Everyone from Acorn to Chevron to SEIU to Smith & Wesson, pays lobbyists. Some lobbyists represent the poor, some represent the rich, some represent churches, some represent enviromentalists.

I think this is probably a more telling list. http://www.opensecrets.org/lobby/lobby_contribs.php?cycle=2010&type=P

Top 10
Dem=6
Rep=3
IND=1

Second 11-20
Dem=7
Rep=3

Third 21-30
Dem=9
Rep=1

But again this stuff changes every election. When Republicans are in power then they will have more people in the Top 30 getting lobbied. If we ever get a solid viable Third Party, they will have people on the list. Thats how is works.

Jay

This isn't a partisan issue - the point was that the rich have more power because they have the resources to lobby. The poor might do it too, but they're damn sure not paying as much as the wealthy (probably a good five orders of magnitude or so less), and if I were an unscrupulous congressman taking money from lobbyists, I'd be trying to remain on good terms with the ones who were shovelling wads of cash into the back of my car, not the ones who pay me with food stamps.
 
This isn't a partisan issue - the point was that the rich have more power because they have the resources to lobby. The poor might do it too, but they're damn sure not paying as much as the wealthy (probably a good five orders of magnitude or so less), and if I were an unscrupulous congressman taking money from lobbyists, I'd be trying to remain on good terms with the ones who were shovelling wads of cash into the back of my car, not the ones who pay me with food stamps.

I agree with you, but the disproportionate influence of the very wealthiest Americans goes beyond direct, registered lobbying. Political advertising and other activities are sponsored by the wealthiest Americans and by organizations that pool their members' resources. The Tea Party/Parties have been sponsored and controlled by billionaires and managed by political insiders since shortly after they were formed. The Supreme Court recently removed most controls over campaign financing, and the other controls are easily skirted. And one of the largest media companies is more or less a mouthpiece for one wing of one party, controlled by a billionaire and managed by an insider. We all get one vote, but that's where the equality ends.
 
if I were an unscrupulous congressman taking money from lobbyists, I'd be trying to remain on good terms with the ones who were shovelling wads of cash into the back of my car, not the ones who pay me with food stamps.

More likely, you'd take the money from lobbyists then keep lying to the people on food stamps to vote for you.
 
I agree with you, but the disproportionate influence of the very wealthiest Americans goes beyond direct, registered lobbying. Political advertising and other activities are sponsored by the wealthiest Americans and by organizations that pool their members' resources. The Tea Party/Parties have been sponsored and controlled by billionaires and managed by political insiders since shortly after they were formed. The Supreme Court recently removed most controls over campaign financing, and the other controls are easily skirted. And one of the largest media companies is more or less a mouthpiece for one wing of one party, controlled by a billionaire and managed by an insider. We all get one vote, but that's where the equality ends.
That works both ways. Both parties have the same game going, not just the GOP.
 
Yup, thats how the system works. Everyone from Acorn to Chevron to SEIU to Smith & Wesson, pays lobbyists. Some lobbyists represent the poor, some represent the rich, some represent churches, some represent enviromentalists.

I think this is probably a more telling list. http://www.opensecrets.org/lobby/lobby_contribs.php?cycle=2010&type=P

Top 10
Dem=6
Rep=3
IND=1

Second 11-20
Dem=7
Rep=3

Third 21-30
Dem=9
Rep=1

But again this stuff changes every election. When Republicans are in power then they will have more people in the Top 30 getting lobbied. If we ever get a solid viable Third Party, they will have people on the list. Thats how is works.

Jay

I think those numbers are not as meaningful as they seem. Lobbyists for all causes would like to influence both parties and will give money to the most influential representatives. Democrats control the Senate (by one vote) and have a large minority in the house. Therefore, all lobbyists would like to get their attention. It may even be that a purchased Democratic vote is more valuable to the donors than a purchased Republican vote because the Republicans will support most of the donors on ideological grounds, regardless of contributions, while the Democrat might be tempted to vote against the potential donor.

I'm more interested in where the money comes from:http://www.opensecrets.org/industries/index.php
Labor ranks 10th. A wide variety of issue-based organizations rank among the leaders, but industry and very wealthy individuals pay the lion's share to the politicians. They are not in the habit of spending money unwisely.
 
I agree with you, but the disproportionate influence of the very wealthiest Americans goes beyond direct, registered lobbying. Political advertising and other activities are sponsored by the wealthiest Americans and by organizations that pool their members' resources. The Tea Party/Parties have been sponsored and controlled by billionaires and managed by political insiders since shortly after they were formed. The Supreme Court recently removed most controls over campaign financing, and the other controls are easily skirted. And one of the largest media companies is more or less a mouthpiece for one wing of one party, controlled by a billionaire and managed by an insider. We all get one vote, but that's where the equality ends.

How about lobbying groups like labor unions, AARP, Bar Associations, Trial Attorneys, so called public interest groups, etc. Why restrict only the corporate voice and not these?

President Obama goes to Hollywood and raises millions and there is not a peep. A corporation makes a political donation and all of a sudden the response is different.
 
How about lobbying groups like labor unions, AARP, Bar Associations, Trial Attorneys, so called public interest groups, etc. Why restrict only the corporate voice and not these?

President Obama goes to Hollywood and raises millions and there is not a peep. A corporation makes a political donation and all of a sudden the response is different.

Not to mention tax payer funded money launderers like Solyndra. No telling how many millions are going back into campaign coffers from that scam, and no telling how many just like it are out there yet undiscovered. There wasn't much complaint from the left when General Motors was found to be donating funds to one party's candidates before paying for their tax payer funded bailout, either.
 
This isn't a partisan issue - the point was that the rich have more power because they have the resources to lobby. The poor might do it too, but they're damn sure not paying as much as the wealthy (probably a good five orders of magnitude or so less), and if I were an unscrupulous congressman taking money from lobbyists, I'd be trying to remain on good terms with the ones who were shovelling wads of cash into the back of my car, not the ones who pay me with food stamps.

No Sir, wasn't trying to make it partisan. Trying to point out that all the parties are involved. But every group wants a say and that means they put money with a lobbying group either individually or collectively to get their message heard. I just think of it as campaigning in reverse.

I agree with you, but the disproportionate influence of the very wealthiest Americans goes beyond direct, registered lobbying. Political advertising and other activities are sponsored by the wealthiest Americans and by organizations that pool their members' resources. The Tea Party/Parties have been sponsored and controlled by billionaires and managed by political insiders since shortly after they were formed. The Supreme Court recently removed most controls over campaign financing, and the other controls are easily skirted. And one of the largest media companies is more or less a mouthpiece for one wing of one party, controlled by a billionaire and managed by an insider. We all get one vote, but that's where the equality ends.

Yes Sir, you are correct. But again it happens on both sides. MSNBC is the counter to Fox, Coffee Party vs Tea Party, Koch Bros vs Soros. Thats why they, collectively, are after independents in every election.

If you get bored go through the Forbes 400 look at some of the donations, it will suprise you how cheap the rich are when it comes to politics.

Jay
 
More likely, you'd take the money from lobbyists then keep lying to the people on food stamps to vote for you.

Even better (keep in mind we're talking about the hypothetical unscrupulous congressman version of me, not the real me).

I agree with you, but the disproportionate influence of the very wealthiest Americans goes beyond direct, registered lobbying. Political advertising and other activities are sponsored by the wealthiest Americans and by organizations that pool their members' resources. The Tea Party/Parties have been sponsored and controlled by billionaires and managed by political insiders since shortly after they were formed. The Supreme Court recently removed most controls over campaign financing, and the other controls are easily skirted. And one of the largest media companies is more or less a mouthpiece for one wing of one party, controlled by a billionaire and managed by an insider. We all get one vote, but that's where the equality ends.

Not to mention that if you can't change the law, as long as you're wealthy enough, you can often break it anyway (or coast in a grey area), and rely on your team of Harvard lawyers to keep you out of trouble.

How about lobbying groups like labor unions, AARP, Bar Associations, Trial Attorneys, so called public interest groups, etc. Why restrict only the corporate voice and not these?

President Obama goes to Hollywood and raises millions and there is not a peep. A corporation makes a political donation and all of a sudden the response is different.

Indeed. Just to reiterate - my point wasn't about left or right wing causes, what I was saying was that for any given cause, if the position of the group with the most money conflicts with the position of the majority, the ones with the money are going to have their position represented with much more weight.
 
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