Who are the real makers and takers?

I have heard a claim from a “ffriend” of mine (yes that’s spelled right. He’s a “Facebook friend,” not an actual friend so I’ll call him a “ffriend”) that the problem with taxes are that they unfairly favor the “takers” over the “makers.” That is, the makers are the ones producing goods and services and the takers are those benefiting from the makers’ hard work and not contributing their fair share. So he thinks our taxation system is unfair to the rich, and it’s the poor’s fault for being poor.

What he failed to recognize is that every massive economic expansion in our nations history was driven through a progressive tax system. There is no such thing as “limitless taxation” – the rich are paying a lower marginal tax rate today than they’ve paid in more than 60 years, with the exception of 1988-1992. The biggest economic expansion we ever saw (Eisenhower years) the rate was at 91%! And guess what – the rich got richer. The poor got richer. The middle class got bigger. People were able to support a family on a single income, they had access to necessary public services, they were able to much more with much less because the government was properly funded.

The reason the overall rate for the wealthy is so low is because of the massive “redistribution of wealth” (he hates that I referenced that!) out of goods and services and into financial instruments – the things created by his “makers” to “take” advantage of the system. More than 50% of our GDP exists in assets held by the 16 largest banks – banks with more than $100B in assets. Those assets are based on derivatives traded in the marketplace and treated as capital gains in the tax system. While the wealth itself is built entirely on false premises (another discussion altogether), there are barely any taxes paid on those gains (15%).

The makers take resources from the takers and take advantage of externalized costs to make their wealth. The makers make off with an unfair percentage of our national wealth while the takers get taken to the bank (with ridiculous interest rates, thankfully limited by the CARD Act).

As a reminder, government is a construct of the people so support the best interests of the entire population, not just the wealthiest 1% makers at the expense of the health of the 99% of us so called takers.

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Filed under Corporate Social Responsibility, Juggling, My Personal Rant

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