Concentrated Wealth

I found this comment on www.lcurve.org regarding economic issues. I hope people find this as educational as I do!

Quoting from a recently-published book by political philosopher David Schweickart,
If we divided the income of the US into thirds, we find that the top ten percent of the population gets a third, the next thirty percent gets another third, and the bottom sixty percent get the last third. If we divide the wealth of the US into thirds, we find that the top one percent own a third, the next nine percent own another third, and the bottom ninety percent claim the rest. (Actually, these percentages, true a decade ago, are now out of date. The top one percent are now estimated to own between forty and fifty percent of the nation's wealth, more than the combined wealth of the bottom 95 %.)

There is a growing class of billionaires that collectively holds a substantial fraction of the wealth of the country. [In March 2006 Forbes reported 793 billionaires in the US with combined net worth of $2.6 trillion. In March 2007 Forbes reported 946 billionaires in the US with combined net worth of $3.5 trillion. That is a 1-year increase of 19% in the number of billionaires and an increase of $35% in their net worth during a time of increasing poverty. Severe poverty is at its highest point in three decades.]

I do not have any problem with successful, wealthy, and/or well educated people, nor do I envy them. In fact I have great respect for Mr. Gates Sr., Mr. Buffet, and Dr. Robert Reich.

What I have a problem with is the attitudes in this country about the poor and the wealthy. Since President Ronald Reagan, people seem to have lost respect for poor and unfortunate people and detest giving a helping hand and the wealthy and businesses can do no wrong. That “kick them while they are down” attitude degrades our morals, principles, and government policies. The biggest injustice is the tax system. Mr. Gates Sr. has talked about estate taxes. Mr. Buffet has talked about the percent of tax paid. Dr. Reich has talked about the widening inequality of income and wealth and other things.

While I have nothing against billionaires, I do wish Republicans would let them pay their own taxes. When a poor person is taxed on 50 % of his net worth and a wealthy person is taxed on much less than 1 % on his net worth and a business is not taxed, that is not fair! The supporters of the consumption tax are trying to convince you to vote for the well being of the wealthy and businesses.

Let’s level the playing field for business by taxing every business out there the same. The only fair way to do that is a net worth tax. Should a single mother of 3 making minimum wage be forced to pay for part of a company jet? What are your morals? What is fair to you?


What should taxes be based on? Would you call someone making $50,000 a millionaire? If he has a net worth of $10 million, would you call him a millionaire? If someone has a net worth of $1,000.00, should he be required to pay $1 million in taxes? Should taxes be based on what someone buys?

By definition the term millionaire is based on net worth, not income. Therefore, if someone has a net worth of $1 million or more, yet only has an income of $50,000 per annum he is still a millionaire.

Income is not a measure of being rich, net worth is. Taxes should be based on ones ability to pay, not what he makes or spends.

When a poor person is taxed on 50 % of his net worth and a wealthy person is taxed on much less than 1 % on his net worth and a business is not taxed, that is not fair! The supporters of the consumption tax are trying to convince you to vote for the well being of the wealthy and businesses.

Wealthy people can use their influence single-mindedly and very effectively. A single billionaire can get the undivided attention of any politician he wants, any time he wants. If he doesn't get what he wants he can, in fact, "fight city hall," the statehouse, and even the federal government. Poorer people must pool their limited individual power and organize to have any effect at all. This is a very difficult thing to manage, in practice.

There are two classes in this country. One class derives concentrated power from its concentrated wealth. The other class has power only in numbers. That power is effective only to the extent that it can be mobilized through organization.

We live in representative democratic society. That means that “we the people” vote for people to represent us to conduct the business of government for the people. Businesses can’t vote and the wealthy that control the businesses are too small in number to elect the representatives. So what do they do? They have money to influence government to their advantage legally. The tobacco companies spent billions to influence public opinion and therefore government regulations to make even more money and kill people. The oil companies spent billions to fight the fact that burning fossil fuels accelerates global warming. Why? Short term profits. Will they make money? Yes. Will they destroy the planet? Maybe. Will people die? Yes. The examples go on and on. Increasing copyright laws from the original 14 years to 70 +, chemical company clean-ups, strip mining, saving and loan, Enron, and so on.

The point is that wealthy people hire lobbyist, think tanks, government employees, and yes our representatives to persuade people that our representatives are voting in the best interest of people instead of allowing the wealthy to steal from society. The fair tax system is funded by millionaires and companies. The fair tax system benefits the wealthy and companies. Shouldn’t people take a critical look at their claims to see how the tax system will benefit them and society?

Until we come to terms with these issues, phrases such as, "We the people...," and, "of the people, by the people, and for the people," are hollow clichés. Every four years people get to exercise there power to vote for representatives. 2008 is one of those very important years. Please don’t make the same mistakes as the last years.