The tax system explained in beer

redrum

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Suppose that every day, ten men go out for beer and the bill for all ten
comes to $100...

If they paid their bill the way we pay our taxes, it would go something like
this...

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7..
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do..

The ten men drank in the bar every day and seemed quite happy with the
arrangement, until one day, the owner threw them a curve ball. "Since you
are all such good customers," he said, "I'm going to reduce the cost of your
daily beer by $20". Drinks for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes. So the
first four men were unaffected. They would still drink for free. But what
about the other six men ? How could they divide the $20 windfall so that
everyone would get his fair share?

They realized that $20 divided by six is $3.33. But if they subtracted that
from everybody's share, then the fifth man and the sixth man would each end
up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill
by a higher percentage the poorer he was, to follow the principle of the tax
system they had been using, and he proceeded to work out the amounts he
suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).
The sixth now paid $2 instead of $3 (33% saving).
The seventh now paid $5 instead of $7 (28% saving).
The eighth now paid $9 instead of $12 (25% saving).
The ninth now paid $14 instead of $18 (22% saving).
The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to
drink for free. But, once outside the bar, the men began to compare their
savings.

"I only got a dollar out of the $20 saving," declared the sixth man. He
pointed to the tenth man, “but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar too.
It's unfair that he got ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 back, when I
got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we didn't get
anything at all. This new tax system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down
and had their beers without him. But when it came time to pay the bill, they
discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our
tax system works. The people who already pay the highest taxes will
naturally get the most benefit from a tax reduction. Tax them too much,
attack them for being wealthy, and they just may not show up anymore. In
fact, they might start drinking overseas, as many are considering where the
atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics.

For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.
 
What is the point?
If it is that the rich are paying more than their fair share of taxes, that's horseshit. Rates for the rich are lower than they have been since Eisenhower, at least. Who do you think you are kidding with this folksy horseshit?
 
darmanad said:
What is the point?
If it is that the rich are paying more than their fair share of taxes, that's horseshit. Rates for the rich are lower than they have been since Eisenhower, at least. Who do you think you are kidding with this folksy horseshit?

Wow, are you misinformed (or choose to avoid the facts). The RICH pay more than the bottom 90% COMBINED!!!! The bottom 48% pay NO taxes!! I think this has been brought up numerous times on this forum. ( look it up, you can find then exact percentages everywhere)

So what if the rates are lower...they should be even LOWER for the rich and the bottom feeders should pay SOMETHING...or is that not fair in your world???

But what do those pesky PhD's know (unless they agree with you)?
 
It was fun to read but far from the truth. First of all, state benefits go disproportionately to the tenth man by way of subsidies, bailouts, and state contracts ("socialism for the rich"). Secondly, the tax burden hasn't been reduced, it's been shifted to bond-holders (domestic and foreign) who want to be paid interest. Whereas previously the rich were paying higher tax, now they pay less tax and use the difference to buy interest-yielding government bonds that tighten their stranglehold on the lower classes yet further. Expenditure is still $100, but the $20 shortfall is now being met by borrowing the difference, then using the accumulating debt as a pretext to cut back social expenditures that benefit the first five or six men yet further. I could keep poking holes in this disingenuous analogy but what's the point? Economics is not a science but more akin to witch-doctory. Economists function as tame ideologues of the status quo.

More here:

In a widely ignored 2000 book, Wall Street Capitalism: A Theory of the Bondholding Class, economist E. Ray Canterbery explains what happened. The tax cuts drastically increased the incomes of the rich and they used their newfound money from the tax cuts to buy the Treasury bonds, notes, and bills that the Treasury Department had to issue in order to finance Reagan's deficits. The combination of monetarism (high interest rates), supply-side tax cuts, and the phantom Soviet threat created the bondholding class. In essence, a Wall Street Welfare institution known as the bond market came to dominate politics in the United States. Instead of using taxes to fund the federal government (and increasingly state and municipal governments), taxes on the rich were cut and they were handed an “investment opportunity” so that working and middle-class taxpayers now pay a “bondholder's tax” to firms like Goldman Sachs and JP Morgan Chase (as well as Japan and China).
.
 
darmanad said:
What is the point?
If it is that the rich are paying more than their fair share of taxes, that's horseshit. Rates for the rich are lower than they have been since Eisenhower, at least. Who do you think you are kidding with this folksy horseshit?

hey darmanad, regardless of your personal opinion, the point is to engage and bring up healthy debate. if you share a differing opinion then please feel free to share it in an intelligent way. instead of being flat out rude and using words like "horseshit" to bolster your opinion, trying posting facts and real life examples. you might actually get more people to see and consider your side of the argument.

if, on the other hand, your objective is to be rude and alienate anyone holding a differing opinion, then you are already well on your way to achieving that goal.

I'm sure you'd much rather prefer to make 10 posts in a row without a single reply in the thread except for your own. Go ahead and continue to dominate the world politics section by starting another 10 threads pushing the same old tired agenda that nobody cares about.

your traits are typical of a person that is closed to outside opinion, talks over other people and is generally a bore. Treat people with respect and you may get it back, otherwise, get a life.
 
Redrum,
The subject of extending the Bush tax cuts for the wealthy has been discussed at great length at this site on the thread originally devoted to the subject of taxes. See the thread on More Obama Likes (sic). You participated in that thread more than a little so you know its content.

I feel strongly that it is morally reprehensible to extend the Bush tax cuts for the rich. In the referenced thread I have explained in great detail why I hold that position. I believe your folksy tale that endorses tax cuts for the rich is a misleading, demagoguic, illogical, and morally reprehensible, argument for extension of tax cuts for the rich. So I think the post is horse shit. Judging from his posted reply to it, so does BBW, but his personal animus towards me prompted a "thanks" to your scolding of me. Quite a card, that BBW, as if he doesn't invokes the word "horseshit" on occasion.

You are right that debate should be kept healthy and intelligent (unfortunately beyond the reach of some here). It doesn't necessarily mean I can't call your position "horseshit" although I agree namecalling isn't very persuasive in and of itself. It's just that in view of the 6 page long thread thoroughly dissecting the subject in which you actively participated I thought it bad form to try to bring it up again in a new thread. And, after all, there don't appear to be any personal remarks contained within the post. It is entirely a quote from another source. To that extent you may be overreacting to take great offense.

If you were to go through my posts (ugh) I think you would find I am not normally the first to hurl insults or be meanspirited. I am not reluctant to post a harsh response if I think someone deserves it...and that happens here quite a bit with some trolls and jackasses. You get those types in any cyber population.

My posts in world politics are a reflection of the materials I find interesting and pertinent. Others may or may not reply. That a few may read the articles is sufficient incentive for me to express my thoughts and to try to convince others to think or read more about the subjects. Isn't that a civic responsibility of all of us, to wit, to dialogue with others and to stay informed about geopolitics -especially in a time of war.
 
This joke applies mainly to the US and countries who don't have VAT (ok there are sales tax in the US).

In most of Europe, indirect taxes (mostly VAT) represent 2 thirds of the taxes paid by individuals, direct taxes (income tax) accounting for the remaining third.

Someone earning very little will likely spend 80/100% of his income every month, hence contributing to the indirect taxes up to 80/100% of his income.
While people making 10.000/20.000USD (what I consider to be the start of the upper middle class) will spend maybe 50/70% of their income.
etc etc (people making 100.000USD a month spending maybe 30 or 40%).

That's a quite big injustice too and this injustice doesn't end here because the rich guy has the money to move to another country, while the poor one... well... is kind of stucked!

Moral of the story : at least the rich guy has the choice, the poor one has not! But somehow, I think that it's not the point Redrum was trying to prove.

As for the usual quotes I expect to find in such threads, like "if the poor want more money, they need to work more like I did!" :
- Depends if you're a man/woman (discrepancy -not sure about the spelling- even nowadays about the income for men/women in ANY country. Difference is still 20/30% with the same Education & profile. Fair ?)
- Depends if you're black, yellow, green, purple with orange dots (sorry : visible minorities, lol) : how many times a boss will not hire someone because of his skin color "you know, if it was only me, I would hire you, but I'm thinking about the clients" (Good point to the US about this though compared to Europe : I think positive discrimination is excellent IF well organized)
- Depends if you come from a low/middle/high class (social background has a strong influence... Best universities are expensive in many countries)
- Religion too plays an important role
- It even depends if you are good looking or not.
etc etc

Conclusion : if you are black woman, one-eyed, muslim, 5"3, come from a poor family you have somehow less chances since the day you were born than if you're a WASP man, good looking, 6"3, whom parents met in Yale or Harvard.

Life is unfair ? Of course it's unfair and it will always be!
Equality then ? No, Equality is a myth, "Equity" is very important.

I might sound like a leftist or whatever (if I was one, I'd rather be a Marxist of the Groucho tendency... it's not from me though :D), but guess what, I voted Sarkozy in my own country (I regret it though on many points, the guy is corrupted) who is far more on the right than BO.
 
The beer story including indirect taxes :
- the poor guy -let's call him Jose el pobre in reference to you know whom- (number 1) contributes to indirect taxes towards 80/100% of his income
- the rich guy (number 10) contributes to indirect taxes towards 20/30% of his income
(fill the gaps)

Only the rich guy can leave the bar, period :p
 
You can't discuss ethics with an unethical person. Aristotle had it right in his “Nicomachean Ethics”: we have to raise people from their “very youth” and educate them “so as both to delight in and to be pained by the things that we ought.”
http://www.truth-out.org/what-bernie-said-part-i65944 merits total republication.

What Bernie Said, Part I
Tuesday 14 December 2010
by: William Rivers Pitt, t r u t h o u t | Op-Ed
121410pitt.jpg

Sen. Bernie Sanders (I-Vermont). (Photo: United States Congress)
At the time of this writing, legislation to formalize the tax deal between President Obama and congressional Republicans cleared cloture by a large margin, and looked ready to sail through the Senate. Polls indicate a large margin of Americans approve of the deal, and newspapers like the Washington Post are hailing the process as "the most significant bipartisan vote since President Obama took office."
Not everyone agrees.
Last week, a battery of congressional Democrats rose up in outrage over the deal, specifically protesting not only the extension of George W. Bush's tax cuts for rich people, but for the attack on the payroll tax, which many see as the beginning of the end of Social Security.
Leading the charge was Senator Bernie Sanders (I-VT), who took to the well of the Senate on Friday to deliver a marathon eight-and-a-half hour denunciation of the deal. As his speech rose and grew, bloggers and "mainstream" media reporters, and then the networks, focused on the fact that it was happening. Articles debated whether this was a "true" filibuster, or merely a very long speech, and a few snippets of what Sanders said were disseminated.
The thing was, if you were not watching C-SPAN, or if you didn't have eight hours to spare, you probably missed the vast majority of what he had to say. No articles I could find repeated his more salient points at any length, and by the end of the weekend, it was as if the event had not taken place.
Not on my watch, folks.
The speech delivered by Mr. Sanders on Friday ranks among the most important I have ever heard in my life, certainly the single most pertinent expression of fact and outrage that has been delivered in this current climate of "compromise" and collapse. He told more truth in his eight hours than many of us have heard from an elected official in the last ten years, and it would be a disgrace if his eloquence faded into the background without the study and reflection it deserves.
The thing is, Mr. Sanders basically recited a book on Friday; the sheer volume of what he had to say is staggering. I highly recommend reading the entire transcript yourself when you have the time, but make enough time; the full transcript is 124 pages long. In lieu of that, I took the time to cull out and highlight what I consider to be the most pertinent aspects of the speech. Because there is so much, I have broken these highlights into two parts. The second part will run later in the week, whether or not this tax deal passes.
What Sanders had to say is too important to miss. The emphasis added in these passages is mine. He begins below with an examination of the so-called "death tax":
This agreement includes a horrendous proposal regarding the estate tax. That is a Teddy Roosevelt initiative. Teddy Roosevelt was talking about this in the early years of the 20th century. It was enacted in 1916 and it was enacted for a couple of reasons. Teddy Roosevelt and the people of that era thought it was wrong that a handful of people could have a huge concentration of wealth and then give that wealth, transmit that wealth to their children. He did not think that was right.
Let us be very clear: This tax applies only - only - to the top three-tenths of 1 percent of American families; 99.7 percent of American families will not pay one nickel in an estate tax. This is not a tax on the rich, this is a tax on the very, very, very rich.

If my Republican friends had been successful in doing what they want to do, which is eliminate this estate tax completely, it would have cost our Treasury--raised the national debt by $1 trillion over a 10-year period. Families such as the Walton family, of Wal-Mart fame, would have received, just this one family, about a $30 billion tax break.
It is all too rare these days to actually hear an elected official jump up and down on the fact that this country has been neatly divided between the scrabbling, scratching majority and an all-powerful micro-minority that gets every break there is to get. Thirty billion for one family? How many schools is that?
From there, Mr. Sanders moved on to the assault on Social Security:
Even though Social Security contributed nothing to the current economic crisis, it has been bartered in a deal that provides deficit-busting tax cuts for the wealthy. Diverting $120 billion in Social Security contributions for a so-called "tax holiday'' may sound like a good deal for workers now, but it's bad business for the program that a majority of middle-class seniors will rely upon in the future.
While this idea of lowering the payroll tax sounds like a good idea, in truth, it really is not a good idea. This idea originated from very conservative Republicans whose intention from the beginning was to destroy Social Security by choking off the funds that go to it. This is not just Bernie Sanders' analysis. There was recently - I distributed it recently at a meeting we held - a news release that came from the National Committee to Preserve Social Security and Medicare. The headline on that press release is "Cutting Contributions to Social Security Signals the Beginning of the End. Payroll Tax Holiday is Anything But.'' What the National Committee to Preserve Social Security and Medicare, which is one of the largest senior groups in America, well understands is that there are people out there who want to destroy Social Security. And one way to do that is to divert funds into the Social Security trust fund and they don't get there.
A majority of Americans were against extending tax cuts for the wealthy, and a whole lot of people have been wondering for a while why this administration and this congress have not instead focused as intently as required on the subject of job creation. Mr. Sanders has a simple solution:
As a former mayor, infrastructure does not get better if you ignore it. You can turn your back, if you are a mayor or Governor, on the roads and the highways because you do not have the money to fix them today, but they are not going to get better next year. At some point, they are going to have to be repaired and fixed. We may as well do that right now.

So I believe the money, the very substantial sums of money in this agreement between the President and the Republicans, which goes into tax breaks for corporate America, could be effectively spent on infrastructure.
According to the National Surface Transportation Policy and Revenue Study Commission, $225 billion is needed annually for the next 50 years to upgrade our surface transportation system to a state of good repair and create a more advanced system. The Federal Highway Administration reports that $130 billion must be invested annually for a 20-year period to improve our bridges and the operational performance of our highways. At present, one in four of the Nation's bridges is either structurally deficient or functionally obsolete. One in four of our bridges is either structurally deficient or functionally obsolete. Yet in this agreement struck by the President and the Republican leadership, to the best of my knowledge, not one nickel is going into our infrastructure. We need to invest in our infrastructure. We need to improve our infrastructure. When we do that, we can create millions of jobs.
From there, Mr. Sanders went on to remind everyone about the nightmare that was the Bush years, and what kind of damage was done to this country because of it. From there, he made several pointed remarks about what he believes to be the true foundations of Republican ideology:
The passage of this agreement would mean we would continue the Bush policy of trickle-down economics for at least 2 more years. That is not a good thing to do because, I think, as most Americans know, that philosophy, that economic approach, simply did not work. The evidence is quite overwhelming. I do not think there is much debate, when median family income during Bush's 8 years goes down by $2,200, when we end up losing over 600,000 private sector jobs, and all of the job growth was in the Federal level, I do not see how anybody would want to continue that philosophy. But that, in essence, is what will happen if this agreement is passed.
During the Bush years, the wealthiest 400 Americans saw their incomes more than double. Do you really think that after seeing a doubling of their incomes under the Bush years, these people are in desperate need of another million-dollar-a-year tax break? In 2007, the 400 top income earners in this country made an average of $345 million in 1 year. That is a pretty piece of change. That is the average, $345 million. In terms of wealth, as opposed to income, the wealthiest 400 Americans saw an increase in their wealth of some $400 billion during the Bush years. Imagine that. During an 8-year period, the top 400 wealthiest people each saw an increase, on average, of $1 billion apiece. Together, these 400 families have a collective net of $1.27 trillion. Does anybody in America really believe these guys need another tax break so that our kids and our grandchildren can pay more in taxes because the national debt has gone up?
Let me also say there is no doubt in my mind what many - not all but many - of my Republican colleagues want to do; that is, they want to move this country back into the 1920s when essentially we had an economic and political system which was controlled by big money interests; where working people and the middle class had no programs to sustain them when things got bad, when they got old, and when they got sick; when labor unions were very hard to come by because of anti-worker legislation. That is what they want. They do not believe in things like the Environmental Protection Agency. They do not believe in things like Social Security, Medicare, Medicaid, Federal aid to education. That is the fight we will be waging.
This point cannot be made strongly enough: What our Republican friends want to do - and they have been pretty honest and up front about it, especially some of the extreme, rightwing people who have been running for office and, in some cases, have won - they have been honest enough to say they want to bring this country back to where we were in the 1920s. Their ultimate aim is the basic repeal of almost all of the provisions that have been passed in the last 70 years to protect working people, the elderly, and children. They believe in a Darwinian-style society in which you have the survival of the fittest; that we are not a society which comes together to take care of all of us. You take care of me in need and I take care of you and your family; that we are one people. Their strategy is pretty clear. They want to ultimately destroy Social Security.
Once again, Sanders dared to raise a subject almost no one in Washington DC has the courage to touch - how much economic damage we have suffered, and continue to suffer, because of the wars in Iraq and Afghanistan:
In terms of the Federal budget, when President Bush first took office, he inherited a $236 billion surplus in 2001 and a projected 10-year surplus of $5.6 trillion. That is what Senator Landrieu was discussing. But then some things happened. We all know that 9/11 was not his fault, but what happened is, we went to war in Afghanistan. We went to war in Iraq. The war in Iraq was the fault of President Bush, something I certainly did not support, nor do I think most Americans supported. The war in Iraq, by the time our last veteran is taken care of, will probably end up costing us something like $3 trillion, adding enormously to our national debt.

So when we talk about Iraq, it is not only the terrible loss of life that our soldiers and the Iraqi people have experienced, let's not forget what it has done to the deficit and the national debt. We did not pay for the war in Iraq. We just put it on the credit card.
This below was my favorite part. Rather than continuing to deal in abstractions and bland figures, Mr. Sanders laid it on the table and put a name and a face to the greed that has been driving us into the dirt:
Let me personalize this a little bit. This gentleman, shown in this picture I have in the Chamber - I have no personal animus toward him at all; I think I met him once in a large room. His name is James Dimon. He is the CEO of JPMorgan Chase. Over the past 5 years, Mr. Dimon, who is the CEO of JPMorgan Chase, received $89 million in total compensation - a bank that we now know received hundreds of billions in low-interest loans and other financial assistance from the Federal Reserve and the Treasury Department.

So Mr. Dimon received $89 million in total compensation. His bank was bailed out big time by the taxpayers. But under the legislation the President negotiated with the Republicans, Mr. Dimon - I use him just as one example for thousands; nothing personal to Mr. Dimon - will receive $1.1 million in tax breaks. So $1.1 million in tax breaks for a major CEO on Wall Street, who over the last 5 years received $89 million in total compensation.

Meanwhile - just to contrast what is going on here - 2 days ago, I brought before the Senate legislation which would provide a $250 one-time check to over 50 million seniors and disabled veterans, who for the last 2 years have not received a COLA on their Social Security. Many of those seniors and disabled vets are trying to get by on $14,000, $15,000, $18,000 a year. The total package for that bill was approximately $14 billion that would go out to over 50 million seniors and disabled vets. We won that vote on the floor of the Senate 53 to 45. But just because you get 53 votes in the Senate does not mean you win. Because the Republicans filibustered, I needed 60 votes. I could not get 60 votes. I could not get one Republican vote to provide a $250 check to a disabled veteran trying to get by on $15,000 or $16,000 a year.

But Mr. Dimon, who made $89 million in the last 5 years, will get a $1 million tax deduction if this agreement is passed. Now, that may make sense to some people. It does not make a lot of sense to me.
In America today - we don't talk about this too much, but it is time we did - we have the most unequal distribution of wealth and income in the industrialized world. I haven't heard too many people talk about that issue. Why not? Our Republican colleagues want huge tax breaks for the richest people, but the reality is the top 1 percent already today owns more wealth than the bottom 90 percent. How much more do they want? When is enough enough? Do they want it all? We already have millions of families today who have zero wealth. They owe more than they own. Millions of families have below zero wealth. We are living in a situation where the top 1 percent owns more wealth than the bottom 90 percent. The top 1 percent owns more wealth than the bottom 90 percent. That is simply unacceptable.
According to the Citizens for Tax Justice, if the Bush tax breaks for the top 2 percent are extended, these are some of the people who will benefit and what kind of benefits they will receive: Rupert Murdoch, the CEO of News Corporation, would receive a $1.3 million tax break next year. Mr. Murdoch is a billionaire. Do we really think he needs that? Jamie Dimon, the head of JPMorgan Chase, whose bank got a $29 billion bailout from the Federal Reserve, will receive a $1.1 million tax break. Trust me, Jamie Dimon, the head of JPMorgan Chase, is doing just fine. Vikram Pandit, the CEO of Citigroup, the bank that got a $50 billion bailout, would receive $785,000 in tax breaks. Ken Lewis, the former CEO of Bank of America - a bank that got a $45 billion bailout--the guy is already fabulously wealthy - would receive a $713,000 tax break. The CEO of Wells Fargo - these are the largest banks in America; the CEOs of these banks are already making huge compensation. John Stumpf, who is the CEO of Wells Fargo, would receive a $318,000 tax break every single year. The CEO of Morgan Stanley, John Mack, whose bank got a $10 billion bailout, would receive a $926,000 a year tax break. The CEO of Aetna, Ronald Williams, would receive a tax break worth $875,000.
Mr. Sanders has been leading the push to expose the insane lending policies practiced by the Federal Reserve during the onset of the financial crisis. Trillions of dollars were doled out to American companies as well as foreign companies and banks, with no oversight and no accountability, while Americans debated the comparably meager $700 billion bailout, having no idea what was going on in the Fed. When Sanders tried to get answers, he was told by Fed officials to go pound sand. On Friday, he let us know about it:
After years of stonewalling, the American people have learned the incredible, jaw-dropping details of the Fed's multimillion-dollar bailout of Wall Street and corporate America - not just Wall Street. It is one of the things we learned. As a result of this disclosure, in my view - we are going to get into what was in what we learned--Congress has to take a very extensive look at all aspects of how the Federal Reserve functions and how we can make our financial institutions more responsive to the needs of ordinary Americans and small businesses.
Then, on top of that, a number of the wealthiest individuals in this country also received a major bailout from the Fed. The ``emergency response,'' which is what the Fed described their action as during the Wall Street collapse, appears to any objective observer to have been the clearest case that I can imagine of socialism for the very rich and rugged free market capitalism for everybody else.
Furthermore, what we now know is the extent of the bailout for the large financial corporations. Goldman Sachs received nearly $600 billion. Morgan Stanley received nearly $2 trillion. Citigroup received $1.8 trillion. Bear Stearns received nearly $1 trillion. And Merrill Lynch received some $1.5 trillion in short-term loans from the Fed.
Furthermore, I think the American people are interested to know that the Fed bailed out the Korea Development Bank, the wholly owned, state-owned Bank of South Korea, by purchasing over $2 billion of its commercial paper. The sole purpose of the Korea Development Bank is to finance and manage major industrial projects to enhance the national economy not of the United States of America but of South Korea. I am not against South Korea. I wish the South Koreans all the luck in the world. But it should not be the taxpayers of the United States lending their banks' money to create jobs in South Korea. I would suggest maybe we want to create jobs in the United States of America. At the same time, the Fed also extended over $40 billion for the Central Bank of South Korea so that it had enough money to bail out its own banks.
After the cloture vote, Mr. Sanders released a statement explaining why he voted "No":
It makes no sense to me to provide huge tax breaks for millionaires and billionaires while we drive up the national debt that our children and grandchildren will have to pay. I further object strenuously to the lowering of rates on the estate tax, which only benefits the top 0.3 percent, the very, very wealthiest people in this country. I also am concerned about a significant precedent which diverts $112 billion in payroll taxes away from the Social Security trust fund. Our goal now must be to strengthen Social Security, not weaken it. Of course we must extend unemployment benefits and the tax breaks that the middle class desperately needs, but in my view we could have and should have negotiated a much stronger agreement.
As previously stated, the entire transcript from Friday is well worth a long, close read, for Mr. Sanders went into much greater detail and at greater length than has been provided above. This is just a taste, but what a taste. The sad realities and hard truths provided by Mr. Sanders must be spread far and wide, passed from hand to hand, repeated ad nauseam until everyone within reach of your arm is aware of what is really going on today. He had the courage to tell it straight. We must not let his words fade away.
Part II will be coming later this week.

This work by Truthout is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.
 
http://www.slate.com/id/2278914/
Statistics show the problem is getting worse. According to a study by Emmanuel Saez of Berkeley, the top 1 percent of earners captured two-thirds of all income growth between 2002 and 2007. The most recent census statistics show a continued march in the same unbalanced direction. The bottom 20 percent of the population—which earned 5.4 percent of national income in 1967—earned just 3.4 percent of it in 2009. The highest 20 percent went from 41.5 to 49.4 over the same period. The Gini Index—the standard measure of income inequality—ticked up again between 2008 and 2009, from .451 to .458. According to the CIA World Factbook, this figure puts the United States ahead of Russia and Turkey in inequality, and on par with Mexico and the Philippines. ...

The United States, the land of opportunity, now boasts the world's second-lowest level of intergenerational income mobility. Meanwhile, the people most alarmed about the rise of new economic dynasties seem to be the enlightened superrich themselves, people like Bill Gates and Warren Buffett.
Obama deserves fault for failing to articulate this abstract threat in a way ordinary people can appreciate. Like the deficit, income inequality never killed anybody—it merely has the potential to sap the entire country's health and spirit. Moving toward an income distribution like Brazil's threatens individual happiness, social peace, and American values.
 
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