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Monday, October 28, 2013

Income Redistribution? Or Income Re-Assessment & Re-Investment??

Whenever the discussion in finance turns to taxation of the ultra-wealthy, it is always depicted in the most inaccurate and unsavory demagoguery

The tired arguments go something as follows..

'That's income redistribution!' which infers a government policy that is socialist or communist

Or..

'You're taking from productive people and giving to those who don't want to work' which is a gross simplification.
The Warren Buffets of the world don't work..  They make money off their money then buy more things to make money from because they are boring creatures..

They are bored with life and with living and as some Buffett defenders have argued with us, take that away from the old rickety man and he has no reason to wake up and feel excited about his day; he would just atrophy..

Perhaps someone should teach the old man canasta or pinochle...

Now as for this nonsense that people don't want to work..  an utter lie.   The Vast majority of people have no problem with working..  they Want to work...
They just Dare to want to get paid a fair living wage commensurate with the time they put into the job and the skill sets they possess while allows them to do the tasks successfully..

They also have the Audacity to want to work in fields to which they spent their young lives acquiring an education and not see those jobs marginalized, outsourced or disrespected/devalued by the society i.e. teaching for instance..

So how to fix this deepening wealth inadequacy?

The answer is simple.. Tax the ultra wealthy 80%...   We are not talking about people making a million/year or even those who make $5 or $10 million..
We are talking about the excessively wealthy --  the billionaire class.

For instance George Soros has a net worth of $19.2 Billion dollars...  Take 80% away and the politics manipulator and currency meddler still has $3.84 billion which looks like this:  $3,840,000,000.00

If that slimy, swarthy New York mayor Michael Bloomberg was taxed properly instead of possessing $27 Billion, he would still have $5.4 Billion to hold dominion over others.

The disgusting Ultra-conservative Koch Brothers, who run Georgia-Pacific and took over the Tea Party movement, once a very noble grassroots effort, each possess $34 billion..  So combine that amount ($68B) and tax 80%...  Each still has $6,800,000,000.00 to lobby with...
Warren Buffett has $54 Billion..  Bill Gates, the pretend philanthropist has $67 Billion..  Tax them appropriately and Buffett now has $10.8 billion and Gates has $13.4 billion left..

So we just listed 6 multi-billionaires who live in the US..  There are others but if you add up their cumulative wealth, it comes to $235.2 Billion....

Six Americans combined hold the wealth of more than a quarter of 1 Trillion Dollars..  and people are conditioned i.e Duped to respect and admire these people...

If government taxed them 80%, it would take in $188.16 Billion dollars
Now should government's role be to act like a 'Robin Hood' and just give the $$ away to the poorest?

No.. not at all..

But there are ways to raise people out of poverty without handouts..

For example very-very low interest start up loans for energetic and enterprising entrepreneurs to start bricks & mortar businesses, providing products and services to their community

Let's say 1 million people start their own businesses and each received a 1% interest 20 year loan on $100k...   That equals $100 Billion dollars lent..  There's still $88.16 billion left from what we taxed those 6 ultra-wealthy snooty-snots for other poverty-battling projects..
And let's say realistically, a mere five percent of those new business owners hired 20 employees and twenty-percent of them hired 10 workers, fifty-percent hired 5 workers and the remaining twenty-five percent hired only a mere 3 workers counting themselves...

You're looking at an increase of total employment by at minimum 5 million!

5 million Newly-employed people working and paying taxes and consuming..

Buying computers and cars and making mortgage payments; circulating the money and stimulating the economy.. Not sitting in the bank accounts of six wretched people.
Or let's say government establishes a program where for every skilled job hire a small to medium business creates and Newly employs, that business will be reimbursed by $25k meaning a $35k/yr hire only costs the private business $10k...

If you divide $188 Billion by $25k, you get 7.52 million new jobs the government supplements for 1 year (2.506 million workers for 3 years)

If the reimbursement was $20k instead of $25k, you're looking at private businesses being able to hire 9.4 Million people for 1 year (3.13 Million workers for 3 years)
That's not income redistribution..

Its income re-assessment and income re-investment!!

And there is absolutely NO excuse this can not be occurring now with immediacy an priority

Well.. other than the fact the super wealthy run and control Washington and have done an excellent job conditioning the poor and disenfranchised to celebrate their extravagance rather than feel justified resentment.

As we noted a moment ago.. a mere six individuals possess $235.2 Billion
If  you divided that wealth by every single man, woman and child living in America this moment (310 million people), each person would receive a check for $758.70

Instead of calling Warren Buffett a greedy, money-hungry old bastard, we call him 'Oracle'

And instead of calling Michael Bloomberg the same words, we call him 'Mayor'

And instead of wanting to spit on the Bill Gates's, Mark Zuckerbergs and late Steve Jobs's of this world, we call them heroes, put them on pedestals and have shitty movies made about their greatness..

One day maybe we as a society will wake up, stop idolizing these cretins and collectively figure how to change this blatantly unfair and corrupt system that favors such a select few..

Maybe..