A Quote by Robert J. Shiller
Those on the downside of rising economic inequality generally do not want government policies that look like handouts. They typically do not want the government to make the tax system more progressive, to impose punishing taxes on the rich, in order to give the money to them. Redistribution feels demeaning. It feels like being labeled a failure.
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One of the tax systems in the US is for wage earners. The government takes money from them out of each paycheck - so it knows how much they make, and those workers can't cheat to any significant degree. But the other tax system is for capital. Those with capital get to tell the government what they want to tell. They may get audited, but if their tax returns are of any size the government doesn't have enough of the smart auditors to figure out what's really going on. And there are the rules that allow you to do things like take in money today and pay taxes on it thirty years from now.
Conventional wisdom on government's role in inequality often has it backwards. Tax reforms have resulted in a more progressive federal income tax; government transfer payments have become less progressive.
When corporations get special handouts from the government, subsidies and tax breaks, it costs you. It means you have to pay more in taxes to make up for these hidden expenses, and government has less money for good schools and roads, Medicare and national defense and everything else you need.
Politicians like to talk about the income tax when they talk about overtaxing the rich, but the income tax is just one part of the total tax system. There are sales taxes, Medicare taxes, social security taxes, unemployment taxes, gasoline taxes, excise taxes - and when you add up all of those taxes [many of which are quite regressive], and then you look at how they affect the rich and the poor, you essentially end up with a system in which the best off 20 percent of Americans pay one percentage point more of their income than the worst off 20 percent of Americans.
.......the poor of the world cannot be made rich by redistribution of wealth. Poverty can't be eliminated by punishing people who've escaped poverty, taking their money and giving it as a reward to people who have failed to escape. Economic leveling doesn't work. Whether we call it Marxism, Progressive Reform, or Clintonomics, the result is the same slide into the stygian pit. Communists worship Satan; socialists think perdition is a good system run by bad men; and liberals want us to go to hell because it's warm there in the winter.
The tax that was supposed to soak the rich has instead soaked America. The beneficiary of the income tax has not been the poor, but big government. The income tax has given us a government bureaucracy that outnumbers the manufacturing work force. It has created welfare dependencies that have entrapped millions of Americans in an underclass that is forced to live a sordid existence of trading votes for government handouts.
You can tax the rich to pay for current spending. You can even tax them very heavily. But when the rich look forward for decades and see nothing but increasing taxes, debts, and government control of their businesses and assets - they will leave.
I always want to say to people who want to be rich and famous: 'try being rich first'. See if that doesn't cover most of it. There's not much downside to being rich, other than paying taxes and having your relatives ask you for money. But when you become famous, you end up with a 24-hour job.
If I were a candidate for running, I'd say, "Look at what the economy has done." It's strong. We've created a lot of jobs. I'd be telling people that the Democrats will raise your taxes. I'd be reminding people that tax cuts have worked in terms of stimulating the economy. I'd be reminding people there's a philosophical difference between those who want to raise taxes and have the government spend the money, and those of us who say, "You get to spend the money the way you want to see fit. It's your money."
The most absurd public opinion polls are those on taxes. Now, if there is one thing we know about taxes, it is that people do not want to pay them. If they wanted to pay them, there would be no need for taxes. People would gladly figure out how much of their money that the government deserves and send it in. And yet we routinely hear about opinion polls that reveal that the public likes the tax level as it is and might even like it higher. Next they will tell us that the public thinks the crime rate is too low, or that the American people would really like to be in more auto accidents.
America's Christian conservative movement is confronted with this divide: small-government advocates who want to practice their faith independent of heavy-handed government versus big-government sympathizers who want to impose their version of 'righteousness' on others through the hammer of law.... Our movement must avoid the temptations of power and those who would twist the good intentions of Christian voters to support policies that undermine freedom and grow government.
The best way to encourage economic vitality and growth is to let people keep their own money.When you spend your own money, somebody's got to manufacture that which you're spending it on. You see, more money in the private sector circulating makes it more likely that our economy will grow. And, incredibly enough, some want to take away part of those tax cuts. They've been reading the wrong textbook. You don't raise somebody's taxes in the middle of a recession. You trust people with their own money. And, by the way, that money isn't the government's money; it's the people's money.
And it isn't that I'm so unhappy I don't want to live anymore. That's not what it feels like. It feels more like I'm tired and bored and the party's gone on too long and I want to go home. I feel flat and there doesn't seem to be anything to look forward to, so I'd rather call it a day.
During the socialist period, the government became too big. That created a crowding-out effect in the private economy, and it gave everybody the need to pay more taxes in order to finance this big government. We are against big government. We want a smaller and more efficient government.
Trump can, like every government, trigger a short boom with borrowed money, just like he has announced. He appears to want to adopt the economic policy approach favored by Republicans of putting lots of money into building roads and cutting taxes. Markets like that. But, at the end of the day, someone always has to foot the bill.
We need a budget that will foster economic growth for all of our people, and we need to make taxes more simple and fair for working families - not give handouts to the rich.
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