‘Tax the Rich’ – a momentous Democrat lie

“… until you run out of other people’s money.”  M. Thatcher

George Rebane

The momentous lies retold daily by the Democratic Party are now getting too numerous to count.  Among the most impactive on Americans is their assertion that the $5T+ cost of their new government growth and spending programs “will be zero”.  How’s that?  Well, they’ll just tax the crap out of “the rich” and corporations.  ‘You, Mr/Ms Main Street Snuffie won’t have to pay a penny; what’s not to like?’

For our informed and educated neighbors such claims are truly head-spinning as is made clear again by economists Phil Gramm (also former senator) and Mike Solon in the 15oct21 WSJ (here).  There we are reminded again that “the wealthy already bear far more of the burden in the US than they do in other developed countries.”  The chart below compares the ‘fair shares’ paid by the top 10% earners in the US, France Germany, and Sweden.  Note the enormous imbalance in what our socialists are demanding to what we already are paying to keep the vote buying programs funded.  The tax burden in other developed nations (including the vaunted Sweden) is more equally shared by incorporation of a nominally 15-20% VAT on all purchases.  So it turns out, as Gramm and Solon show, that the US already has the most progressive tax system in the world, thereby giving lie to the claims that somehow the ‘rich’ are getting away with murder at the expense of the remaining 90% of Americans.

Their public copy aside, what the Democrats’ new tax proposals do is continue to favor the top 1% who lower their tax rates by charitable giving and investing in tax-favored securities and sectors promoted by our government.  These provisions actually favor the very rich – i.e. the top 1% of earners, not the 10% - and none of such bennies will be affected by the new ‘tax the rich’ rates designed to hit the less wealthy down the income ladder.  No lamestream outlet is allowed to tell us this.

In the meantime we are having a problem finding enough workers to support robust economic growth.  “Since the War on Poverty started in 1965, the labor-force participation rate of bottom-quintile earners, who now receive more than 90% of their $50,000 average income from government transfer payments, has fallen from almost 70% to 36%. With the Build Back Better Act proposing to explode unearned benefits and shower them on middle-income Americans, how long will it take for the current U.S. labor-force participation rate of 61.6% to fall to 55%, as it is in France, or 50%, as it is in Italy? Who then will pull the wagon and pay the taxes to fund the American welfare state?”  This is what we mean when we talk of the takers and makers.  And who do the takers vote for, and which party wants to maximize the people (citizens and illegals) who draw ever more of their succor from the government?

(And these worthies have no idea what’s in store for them regarding their contribution to labor, once the nation, any nation, falls under the tender mercies of a single party state.  History read is a great teacher; not so much history ignored.)

We are reminded again by Gramm and Solon that “corporations don’t ultimately pay taxes” – their customers and their risk-exposed owners pay the whole kit and kaboodle.  “If there is anything economists agree on—and there isn’t much—it’s that all taxes imposed on corporations fall in part on the consumers of their products and in part on their stockholders and workers. Workers pay between 50% and 70% of the corporate tax that isn’t passed on to consumers in higher prices. The record growth in real wages after the 2017 corporate tax cuts, especially among low-income, minority and disadvantaged workers, bears this out.  So when corporate tax rates are raised, it’s workers and their pensions, retirement accounts and insurance investments, which own 72% of America’s stockholder equity, who pay most of those taxes.”

Again, the indominable man-in-the-street who votes Democrat has no clue of this, or at best considers it to be another rightwing piece of fake news put out by rich capitalists and big corporations.  However, when you run the numbers, you see that “not surprisingly, with much of the 2017 tax cuts made up of corporate rate reductions, child tax credits and a doubling of the standard deduction, the Trump tax cuts made the tax code more, not less, progressive.”  When was the last time you heard that on any of the lamestream outlets?

We can put a ribbon around all this by citing the most recent big three feel-good economic accomplishments out of Bumblebrain’s teleprompter – 1) he has created 5M+ new jobs, 2) unemployment dropped below 5%, and 3) wages have gone up.  Well, not exactly.  Employment gain has been anemic due to government handouts, industry is stifled for lack of workers.  Unemployment dropped only because more people dropped out of the workforce -  i.e. they quit looking for jobs.  And the buying power of wages has declined due to not keeping pace with the big jump in inflation.  Americans’ real wages have declined for the first time since the big Obama dip in 2013.  And all of this is due to self-inflicted harm brought to you by Team Biden and his ballyhooed Build Back Better policies which have a snowball’s chance in hell of kicking in.  But to Bumblebrain, all this is "progress".

Comments

[scenes]

I think it's a pretty slick system.

There's always network effects and economy of scale to encourage the establishment of huge companies, but you also use government to do the same thing.

. Non-enforcement of antitrust
. Regulatory moats
. Legal moats
. Arcane tax law moats
. Access to members of Congress/military, etc. via $$$$ and promised jobs

They (megacorp and government) both take advantage of the thing. Once the close ties are established, people can achieve status and wealth in either track. Companies have profits skimmed off to government which is then handed out to the special friends of the nomenklatura.

Very tidy.

Democrats love a system they can control and profit from.
Republicans pretend there's a free market involved.
Win-win.

[The Estonian Fox]

Scenes, you get the SPoD. (Sarcasm prize of the day).

You were in the top 5, until the last (partial) sentence. The 'win-win' vaulted you over the top.

Unfortunately, I'm not sure it can be called sarcasm when it's true.

And you know neither the Democrats nor Repubs care about our system running off the tracks. As the pilot says on his wheels-up landing - "No problem, just need to apply a little more power to get to the hanger".

[Scott O]

scenes - "Republicans pretend there's a free market involved."
Well, the 'free market' is 'involved'.
Actually it's mostly Dems that tout his sort of system as a govt-guided free market.
Remember all the lefties that claim the banking system was 'deregulated'.
We have only the whisper of a free market left in this nation.
"Psst - hey man - want a dime bag?"
Beyond that - regulations to the moon, Alice!
Your kid's lemonade stand is not even free-market.
Republican politicians (mostly) just tread water.
Do you blame them?
Look at who they have to count on to elect them.
Yeah - the solid 25 - 30% conservatives but also the famous 'middle of the roaders' that are a bunch of clueless dip shits that can't be bothered to pay attention to much more than the latest game score or a photo of some woman's butt-cheeks on the internet.
You wanna run this show?