Constructive gadfly
Published on October 29, 2008 By stevendedalus In Politics

 

The much talked about Redistributor in Chief took place in 1981 when Reagan took the progressive tax structure on the wealthy from 70% down to 28%, the inevitable consequence of which simply brought into reality the adage the rich got richer and the poor got poorer. The additional bonus was the rise in numerous tax shelters to the point that true earnings were distorted. and to rub it in, investors looked to cheap foreign labor to enrich themselves further. Meanwhile in Washington union busting prevailed and living wages began to tank, roiling redistribution even more .    


Comments (Page 3)
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on Oct 30, 2008

No you don't understand what I was responding to. taltamir said "Heavier taxation of individuals making more money decreases the incentive to make more money", that's a broad erroneous assumption on on what motivates people and how the wealthy would respond to a tax increase

Actually, if you had read my complete reply you would know that I did understand what you were responding to.

Taltamir was absolutely right.

And I stand by what I said:

Assuming their time is worth nothing to them and that they have an infinite amount of it.

I can tell you that I value my free hours and if taxes are too high I would work less if instead of making X per hour I'd make Y per hour, with Y being X after the new taxes and Y being below the amount I value my time at.

Now, do you have anything to add to that?

 

on Oct 30, 2008

No Leauki, narrowing the definition to include only one form of wealth distribution is not more precise. Just like narrowing the definition of taxes to only include income tax is not more precise.

He wasn't narrowing the definition. He just gave a definition.

"Redistribution" is a form of "distribution".

What's your problem with his definition? Cannot use it for propaganda?

 

on Oct 30, 2008

Arty, you are referring to people trading labour for money and goods for money voluntarily. That is not what we are discussing here.

If anybody has a better definition, please speak up.

But it sounds rational to me that "redistribution of wealth" is the act of X taking money from Y to give to Z.

 

on Oct 30, 2008

Arty, you are referring to people trading labour for money and goods for money voluntarily. That is not what we are discussing here.

I apologize for any confusion.

I was using the analogy of a hypothetical Mr. Ford and his factory workers to illustrate that if wealth is distributed between a larger segment of the populace, society benefits more than the "king of the hill" model in which a small number of people sit at the top of a massive hill and "trickle down"  a few crumbs to those at the bottom.

Since we can only expect to function reasonably as a society of laws and NOT a society of men, the distribution of wealth needs to be legislated, not left to volunary means. This works both ways as it protects BOTH parties as opposed to leaving this distribution to the whims of a rabid marxist who would redistribute every last cent equally between working and non-working folk and a robber-baron capitalist who would go by the "winner take all" mentality in which the CEO takes home a cool hundred million paycheque and lives in a gated mansion while the surrounding town is a barrio!

Yes, voluntary is fine but there are very few Mr. Fords and very many Jeff Skilling's and Ken Lay's.

on Oct 30, 2008

Since we can only expect to function reasonably as a society of laws and NOT a society of men, the distribution of wealth needs to be legislated, not left to volunary means.

Do you expect people to submit voluntarily to such a system?

 

on Oct 30, 2008

He wasn't narrowing the definition. He just gave a definition.

"Redistribution" is a form of "distribution".

What's your problem with his definition? Cannot use it for propaganda?

Wealth redistribution includes any benefit someone receives at the expense of others, even if it's just at a state level. If my money pays for a school or a park for people that didn't pay anything you have x taking money from y to give to z. Even if you had flat tax the wealthy would still be having money taken from them and given to others.

You, taltamir and others are narrowing the term to only include an increase in the level of wealth distribution by the increase of the progressive tax system. That is only part of the definition and the one who's ignoring the complete meaning of a term is the one is the one trying to make that term fit their agenda.

There are strong arguments on both sides of the flat tax progressive tax argument. The tipping point for me is a flat tax increases an already increasing wealth divide and I and others have explained why we feel that is bad for our society.

Assuming their time is worth nothing to them and that they have an infinite amount of it.

That's just hyperbole.

I can tell you that I value my free hours and if taxes are too high I would work less if instead of making X per hour I'd make Y per hour, with Y being X after the new taxes and Y being below the amount I value my time at

I did respond, I said most would choose not to make even less than resulted from the tax increase.

 

 

on Oct 30, 2008

Wealth redistribution includes any benefit someone receives at the expense of others, even if it's just at a state level. If my money pays for a school or a park for people that didn't pay anything you have x taking money from y to give to z. Even if you had flat tax the wealthy would still be having money taken from them and given to others.

Yes. And your point is?

 

You, taltamir and others are narrowing the term to only include an increase in the level of wealth distribution by the increase of the progressive tax system.

What?

 

I did respond, I said most would choose not to make even less than resulted from the tax increase.

Unfortunately that is not true.

 

on Oct 30, 2008

Do you expect people to submit voluntarily to such a system?

No.  And no one has come up with a good reason why they should.

on Oct 30, 2008

That's bull, more money is more money a better job is a better job, the only way this would have any truth is if you put a 100% tax on what you earned after a point.

No, it is the truth. It is the time value.  If I get $100 for the first 40 hours a week I work, but only $20 for each additional hour, I am going to do other things with my time than waste it working.  It is basic economics.

Money and services are interchangeable,

No they are not.  Try spending your drivers license.

As to Dr. Guy and his comment about the constitution and taxes, its true, but then, the framer's were dealing with 13 states, little to no Army, no infrastructure as we commonly consider it, and people died very early in life. Things have changed.

And beleive it or not they were smart enough to realize that, and provide for it.  That is why we have 27 amendments to the document they created.  There is a right way and a wrong way.  The wrong way (I know this is going to come as a shock) is never the right way.

on Oct 30, 2008

So, how do you Mr. Conservative, plan to reduce the trillion dollar deficit?

Hold spending (note not cut - but to liberals that means a cut) at a fixed level and let revenues catch up.  The problem is not too few taxes, but too much spending.  A foreign concept to many I am sure.

 

on Oct 30, 2008

There are strong arguments on both sides of the flat tax progressive tax argument.

There might be, but what does it have to do with what the taxes are used for?

 

on Oct 30, 2008

stubbyfinger
Don't call things "bull" if you don't understand them!


No you don't understand what I was responding to. taltamir said "Heavier taxation of individuals making more money decreases the incentive to make more money", that's a broad erroneous assumption on on what motivates people and how the wealthy would respond to a tax increase. Some would expand their business to make their time more valuable. Some might cut spending. I think a very small percentage would simply accept less income and even cut it further by working less like you, and a tax increase does not change the incentives for education, even if your only incentive is more money.

And I am absolutely right, it does decrease the incensitive. Will it decrease it enough to make everyone work less? no, but it will make SOME people work less. How many depends on how much you increase it. hence "lower incentive" and not "destroy the incentive".

All definitions are selective. That's what a "definition" is. His definition of "redistribution of wealth" is very precise.


No Leauki, narrowing the definition to include only one form of wealth distribution is not more precise. Just like narrowing the definition of taxes to only include income tax is not more precise.

You seem to not grasp what redistribute means. If I am taxed more lightly then a richer person for a service we both receive, say police protection, and we receive it to differing amounts, and the government has a legal monopoly on that service, then no redistribution occured. Every USAGE of funds is technically a DISTRIBUTION of funds... Redistribution of wealth means the government takes MONEY from party A and give to party B. "Distribution of WEALTH" as you call it can only be used on a graph to show how much money each person has (like the one posted earlier); so I am a bit baffled why you decided to change its definition to mean redistribution of wealth and redifining that as taking less from the rich then you did before (but still more overall) and use it to provide a service to everyone..

Hold spending (note not cut - but to liberals that means a cut) at a fixed level and let revenues catch up.  The problem is not too few taxes, but too much spending.  A foreign concept to many I am sure.

It shocks many.

Money and services are interchangeable,

 

No they are not.  Try spending your drivers license.

Quote of the day .

Here is a better one, try spending "local police budget per citizen" / "college subsidy" on beer and smokes.

If the rich are taxed more heavily to provide better police protection it is quite different then if they are taxed more heavily to give someone a check.

on Oct 30, 2008

No, it is the truth. It is the time value. If I get $100 for the first 40 hours a week I work, but only $20 for each additional hour, I am going to do other things with my time than waste it working. It is basic economics

Or maybe they're motivated to find a way to make that 40 hrs worth a $110 an hr.

No they are not. Try spending your drivers license.

It is irrelevant whether or not I can spend it, if someone pays for anything that I need that means I don't have to pay for it. Money saved is money gained.

You guys seem to be hung up on only including direct transfers of cash as a means of redistribution. You act like Obama is going to enact this new policy instead of just an increase in an existing one.

There might be, but what does it have to do with what the taxes are used for?

Again deciding how much taxes and what they're used for is what the election is all about.

on Oct 30, 2008

Or maybe they're motivated to find a way to make that 40 hrs worth a $110 an hr.

What? that statement has nothing to do with taxation.

on Oct 30, 2008

You guys seem to be hung up on only including direct transfers of cash as a means of redistribution. You act like Obama is going to enact this new policy instead of just an increase in an existing one.

No, we are just disturbed by the need to HIDE and lie about it as if obama and his supporters KNOW it is wrong. It would be a lot less disturbing if they didn't juggle words but instead tried to explain why they support such a notion.

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