http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7528733Union Yes (1000+ posts) Thu Jan-21-10 02:27 AM
Original message
We may only have 1 chance left to save America from collapse: Tax ACCUMULATED super-wealth.
America's federal budget deficit for fiscal year '09 was near 1.8 Trillion dollars. With an escalating war and diminished tax base due to unemployment FY '10 could push the 2 Trillion Dollar budget deficit threshhold.
For 1 year.
We'll hit 20 Trillion in debt in what, 5 years if we stay on this pace? Perhaps even sooner.
What if China runs out of money and stops lending to us? America is bleeding the worlds economy dry by our nation's continued borrowing.
Fiscal irresponsibility and runaway deficit spending are causing the devaluation of our dollar. Which by the way is hovering at near record all time lows. Our dollar is becoming more worthless.
Which is deepening our economic crisis. And that's exactly what our current economic situation is;
- AN EPIC CRISIS.
Trickle-down/Supply-Side Economics(SSE) has been an epic failure since Reagen's 1982 budget unleashed HELL on the working class that has left our nation in a state of a collapsing economy and a dieing middle class.
The most glaring effects of SSE
- its inability to balance America's federal annual budget.
- Tax cuts for the super-wealthy have shifted the burden of taxation to the middle class and working/unemployed poor.
- Tax cuts for the super-wealthy fueled explosive deficit growth.
- 95% of America's 12.5 Trillion dollar national debt has accumulated since Reagen's 1982 budget proving SSE's inability to fund our nation.
- Tax cuts for the super-wealthy have fueled the upward redistribution of wealth from the MC and poor to the wealthy few.
- result: 90% of all of America's vast wealth is owned by the wealthiest 15% of it's population.
- diminished earning and purchase power of the remaining 85% of us. How can an economy sustain when most of it's population is going broke?
When the super-wealthy hoard their wealth, they remove it from circulation and remove that wealth from our economy.
Meaning that most of America's wealth isn't circulating and is not working within our economy.
Meanwhile the super-wealthy sit on top of a mountain of wealth while our nation sits at the edge of fiscal collapse. Reforming our income tax code and raising taxes on the rich is a step in the right direction but only goes so far. Income taxes do little to address the hoarding of wealth.
It's time for a new tax on accumulation of super-wealth. As an example..
Levied annually, like the income tax.
Tax net worth annually on individuals worth 5 Million dollars or more. Taxed progressively in incremental brackets. Higher net worth moves into a higher bracket so that a person worth 5 million isn't hit so hard by this tax, but a billionaire would be. And rightfully so.
Net worth is determined through individual audits of wealthy people. Tough enforcement for any who evade these taxes or hide wealth.
Our Treasury is going broke. Our nation is going broke. Meanwhile, the wealthy sit on top of a mountain of super-wealth.
Poverty is exploding. The rich get richer. America goes deeper into debt.
The American economy works best when wealth is spread throughout its entire population rather than concentrated and hoarded by the wealthy few.
Taxing accumulated super-wealth could jump start our economy by funding New Deal level infrastructure rebuilding and improvement. Roads, highways, streets, water, sewer, electric power grid, cleaner power generation, cleaner energy, renewable energy, schools, public education, tuition assistance.
Taxing accumulated wealth could solve our deficit and debt crisis. It would address the growing wealth divide. The wealth divide, the gap between rich and poor is a national tragedy.
I want to add, may be meaningless but did you know..
In 2003, Bill Gates' father testified before congress on our governments need to tax accumulated super-wealth. Of course, that testimony fell on deaf ears.
What other alternative do we have? If you're opposed to this then give me your best idea as a an alternative.
Peace
UY
Simple response from a non wealthy person...F**k you.
Jim Sagle (1000+ posts) Thu Jan-21-10 02:33 AM
Response to Original message
1. Hell yeah!
jgraz (1000+ posts) Thu Jan-21-10 03:02 AM
Response to Original message
5. Just enact a 100% inheritance tax for estates above $5 million.
Problem solved.
You are an idiot,anyone smart enough to get to that point and not lose it (rules all of you DUmmies out) could work around that in an instant and not to the benefit of the economy.
Codeine (1000+ posts) Thu Jan-21-10 03:10 AM
Response to Reply #5
7. Exactly.
Five million is more than e-*******ed-nough. I'm enough of an asshole to set it at more like three million, but we'll be generous and use your figure.
You had the asshole part right.
anonymous171 (1000+ posts) Thu Jan-21-10 03:14 AM
Response to Original message
9. TIME TO SHARE THE WEALTH MOTHER****ERS!
TIME TO EARN YOUR OWN,LAZY ASS!
exboyfil (679 posts) Thu Jan-21-10 04:32 AM
Response to Original message
13. One area in which wealth is protected
is in these so called charitable tax exempt foundations which just become a legacy extension of the original wealth acquirer. They can avoid capital gains as they liquidate equity positions and avoid inheritance taxes.
It is amazing how every little tax benefit gets abused. An example are college savings 529s which allow after tax money to be saved and pulled out tax free on earnings for education. They announced that vast sums were being put into these 529s (far beyond any sort of education requirements), and it turned out that they are an effective tax avoidance tool even if you allow for the taxes when not used for education.
A big problem with trying to tax wealth is that, unless it is in real property (think real estate) it is real difficult to get a handle on. Since an accounting comes at inheritance time, it can probably be done. Lets say you tax 10% of someone like Bill Gates - would he pay his taxes with an in kind payment (Microsoft shares) or be forced to liquidate that portion of his holdings. Of course the bottom then drops out of the stock price - what tax is he responsible for (the value at tax date or the value when he tries to pay the taxes)? What about the other equity holders (those small retirement savers) who take it on the chin as the equity markets tank again? Bonds would also collapse as they are liquidated to pay the tax.
What about tax exiles? Before such a law comes on the books, many individuals would use the existing laws to give up U.S. citizenship and pull their wealth out of the country. Already we have one of the most aggressive laws for going after U.S. citizen ex-pats who are responsible for taxes on income earned out of the country even though all economic activity is done outside of the U.S. (their only connection being their U.S. citizenship). What would be the impact of the capital flight from the U.S.?
How dare you introduce logic and thinking into this...TAX THEM!!!!!!
drm604 (1000+ posts) Thu Jan-21-10 05:42 AM
Response to Reply #13
14. Maybe capital being removed from the US could be hit with a hefty tax.
Could that be a solution to the capital flight problem?
As for the stock problem, do the super wealthy really have the majority of their wealth in stocks? I'm skeptical. If I were that wealthy, the bulk of it would be in much safer forms. I suspect that most of them could come up with the cash needed to pay the tax without having to liquidate large blocks of stock.
But what if most of someone's wealth were in stocks? Could the tax perhaps be paid in shares of stock? The government could then sell it off slowly to avoid dropping the price.
Of course, I'm not a financial analyst so I could be totally off base here.
That is the point dude...it was gone,how you going to tax it?
