"Wealth Redistribution"

"Wealth Redistribution"

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“Invisible Pink Unicorn”

Since: May 08

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#1 Mar 25, 2012
The Problem
We have had 30 years of massive Wealth Redistribution, but it's not what you think. Changes in tax laws, the loss of labor unions, and money in Washington have caused a massive Redistribution of Wealth. In 1960, the top 1% of American's held just 10% of our entire Nation's wealth. Today, the top 1% of American's hold over 40% of our Nation's entire wealth. Even more, the top 5% of American's now hold 63.5% of our entire Nation's wealth. Since 1980, we have seen middle class wealth be redistributed up.
The wealthy have seen over a 256% increase in salary since 1980 while middle class salaries have stagnated. Not only have middle class household salaries stagnated, employer benefits have disappeared. Pensions have almost entirely disappeared and were replaced by 401k's. Employer contributions to 401k's have been shrinking and replaced by employee contributions. The middle class now pays for more or all of their own retirement.
Likewise, employer paid for healthcare benefits have been shrinking or disappearing. The middle class now has to pay for more and more of their healthcare premiums. At the same time, Health insurance companies have seen a decade of record profits.
Even more, in the last decade, the wealthy have paid the lowest taxes in more than a half of a century. In the 1950's, the highest marginal tax rate was 92%. If you made more than $300,000, you were taxed at 92% over that $300,000. During the 1960's-1970's the highest marginal tax rate was over 70%. Then under Reagan in the 1980's it went down to 50% and even lower, 45%, under George H.W. Bush. The Gingrich Republican-controlled House and Senate dropped the highest tax rate to 39.6% in the 1990's. Then, George W. Bush dropped the highest marginal tax rate to a meager 35% even though those massive tax cuts drove up the federal deficit.
Furthermore, George Bush dropped taxes on Capital Gains (stock market earnings), where the wealthy accumulate most of their money, to a mere 15% from 39.6% under Clinton. In the last decade, the wealthy have had the lowest tax rates in more than half of a century and we have had massive deficits. Moreover, because there has been no tax disincentive to pay out all of the corporate profits to the executives, and there is only so much profit pie, the middle class was the loser. Employers cut employee benefits while paying more and more of their profits out to a few at the top.
What Happened
So what went wrong? The middle class is the engine of the economy. It is the middle class spending that moves the economy. The middle class spends its earned money on goods and services. The corporations take that money as profits and then distribute the profits.
Since tax policy changed and the highest marginal rates dropped dramatically lower over the last 30 years, corporations have lost a disincentive to pay out all of the profits to a few small people at the top. When the highest marginal tax rate was 92% over $300,000 in the 1950's, there was a disincentive to pay out more than $300,000 to corporate executive. But now, with the highest marginal tax rate a mere 35%, there is no disincentive to pay executives extreme salaries. Executive salaries ballooned over 256% since 1980 and another 11% just last year. And there is only so much profit "pie" to share, so that left corporations with much less to pay their other employees.

“Invisible Pink Unicorn”

Since: May 08

Location hidden

#2 Mar 25, 2012
Part 2

At the same time unions began to disappear leaving employees without bargaining power over salaries. Today, less than 12% of our entire nation's jobs are unionized and a good portion of the remaining union jobs are in the public and not private sector.

So why didn't the middle class notice the income disparities? The Financial Sector created "innovations" in credit and said "let them eat credit." Although the middle class salaries were stagnating, the middle class felt richer because credit became easier. Down payments on homes shrunk every decade and so did the qualifying requirements. Although the middle class did not have the rise in income to make purchases, the financial sector decided to allow the middle class to go into debt to make purchases. People now could buy cars, t.v.'s, appliances, furniture, etc. on credit.

Corporations said why should we pay our employees more salary when instead we can loan them money to buy our products instead. Companies quickly learned that they could make money off their employees by loaning them money instead of paying them. Car companies starting loaning money to buy cars. Today, people hold multiple credit cards and most companies allow their products can be bought on a line of credit. Instead of salary increases the middle class was given credit, loans, and debt.

In 1980, the middle class actually had savings. Today, the middle class has stagnated salaries, reduced or no employer benefits, and massive amounts of debt. Meanwhile, the wealthy are wealthier than they have ever been in our Nation's history. The Forbes top 400 wealthiest people in the U.S. had a staggering 523% increase in wealth since 1982. During the recession from 2007-2009, Wall Street profits were up 720% and Wall Street recently had its second best year in history. The healthcare industry has likewise had a decade of record profits while we are suffering from a healthcare crisis of massive premiums and little coverage. The oil industry has also had a decade of record profits while we struggle to pay high gas prices. Corporate America is bringing in record profits and sitting on trillions in cash while the middle class struggles to get by.

So, yes we have "Wealth Redistribution," but it is the middle class wealth that has been redistributed to the wealthy.

Solution
A recent study by Yale looked at when the middle class fared best. The study determined whether the middle class fares best when taxes are lowest or at their highest. The study determined that the middle class actually fares best when taxes are at their highest. The study found that when taxes were highest the government could invest in the middle class and help with college grants etc. The middle class actually fares worst when taxes are lowest because it looses the investment from government.

It is a myth that taxing the wealthy aka "job creators" will keep them from creating jobs. The "job creators" have had a decade of the lowest taxes in more than half a century and studies show that there were little or no jobs created. Tax cuts just make the wealthy wealthier. There is no trickle down. The middle class is the engine of our society and, because of the 30 years of the middle class Wealth Redistribution and debt accumulation, it is run out of gas.

We need to reinstate a tax policy that discourages all of the corporate wealth to be paid out at the top. We need to raise taxes on the wealthy and use the money to invest in the middle class and America. We need a modern form of unions to bargain for better wages and benefits. We need to stop the wealthy and corporations from corrupting Washington. We need federally funded elections. We need reform of our media and to bring back the "Fairness Doctrine."
http://www.dailykos.com/story/2011/08/05/1003...

Level 2

Since: Oct 08

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#3 Mar 26, 2012
uring the 2004 U.S. election campaign, Daily Kos readers gave approximately $500,000 in user donations to fifteen Democratic candidates denoted as most needing funds. The candidates were Tony Miller, Ben Konop, Daniel Mongiardo, Richard Romero, Samara Barend, Jeff Seemann, Nancy Farmer, Ginny Schrader, Jan Schneider, Lois Murphy, Jim Newberry, Brad Carson, Tony Knowles, Stan Matsunaka and Richard Morrison. All of these candidates lost. However, Moulitsas had stated that he was deliberately selecting candidates who were not receiving significant financial support from other sources; candidates who were expected to win or even be competitive were, by and large, already being funded by the DNC, DCCC, and other national and regional organizations.

Extremely Biased post!

“Invisible Pink Unicorn”

Since: May 08

Location hidden

#4 Mar 26, 2012
Niether of the Above wrote:
uring the 2004 U.S. election campaign, Daily Kos readers gave approximately $500,000 in user donations to fifteen Democratic candidates denoted as most needing funds. The candidates were Tony Miller, Ben Konop, Daniel Mongiardo, Richard Romero, Samara Barend, Jeff Seemann, Nancy Farmer, Ginny Schrader, Jan Schneider, Lois Murphy, Jim Newberry, Brad Carson, Tony Knowles, Stan Matsunaka and Richard Morrison. All of these candidates lost. However, Moulitsas had stated that he was deliberately selecting candidates who were not receiving significant financial support from other sources; candidates who were expected to win or even be competitive were, by and large, already being funded by the DNC, DCCC, and other national and regional organizations.
Extremely Biased post!
But a look at this country tax codes of the past show it to be true. The rich keep paying less the middle class is stagnant and the numbers of poor are growing.

Level 2

Since: Oct 08

Location hidden

#5 Mar 26, 2012
Jammercolo wrote:
<quoted text>
But a look at this country tax codes of the past show it to be true. The rich keep paying less the middle class is stagnant and the numbers of poor are growing.
Define, rich, middle clas and poor! The Tax Code, I agree, along with the capital gains, and dividend/investment credits. But this blaming the rich for our issues is campaign template set forth by the DNC to rally and create a class warfare, but never defines who is rich and who is middle class, so it is kind of hard to tell who the players are!

“Invisible Pink Unicorn”

Since: May 08

Location hidden

#6 Mar 26, 2012
Niether of the Above wrote:
<quoted text>Define, rich, middle clas and poor! The Tax Code, I agree, along with the capital gains, and dividend/investment credits. But this blaming the rich for our issues is campaign template set forth by the DNC to rally and create a class warfare, but never defines who is rich and who is middle class, so it is kind of hard to tell who the players are!
Gallup reports that:

Americans say they would need to earn a median of $150,000 a year to consider themselves rich. Separately, 50% say they would need $1 million or more in savings and investments to consider themselves rich.

The rich buy the elections.The rich pay the lobbyist to get the tax code changed.The rich send our jobs over seas to make a buck. The rich make the rules.

Level 3

Since: Apr 12

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#7 May 1, 2012
The Republicans are complaining that their rich buddies aren't getting enough. They need those bribes, err, I mean campaign contributions.
Aggie Nostic

Denver, CO

#8 May 1, 2012
So then the rich elected Obama? Yes, he was the darling of the hedge fund boy''s club and unions- all very rich off of the fruits of the labors of others.

I guess Dems need those bribes, er, campaign contributions as well.

Looky everybody- a new troll! They need a lot of attention, so say HI as you pass by.

;)
Aggie Nostic

Denver, CO

#9 May 1, 2012
So, Jammer, should we not allow people to earn more than we see fit? How will that make anybody else earn more?

And $150k is not rich by any means.

Nothing but envy and misguided anger.

Level 3

Since: Apr 12

Location hidden

#10 May 1, 2012
Aggie Nostic wrote:
So then the rich elected Obama? Yes, he was the darling of the hedge fund boy''s club and unions- all very rich off of the fruits of the labors of others.
I guess Dems need those bribes, er, campaign contributions as well.
Looky everybody- a new troll! They need a lot of attention, so say HI as you pass by.
;)
I took another look at my post and I thought "How dumb was that?" I didn't mean for it to come accross as partisan, but it couldn't have gotten more partisan than the way I put it. LOL I have my own hedge fund. What the hell was I thinking?

“Its Eaiser to fool people than”

Since: Sep 11

convince them they are a fool

#11 May 1, 2012
Bodacious Babe wrote:
<quoted text>
I took another look at my post and I thought "How dumb was that?" I didn't mean for it to come accross as partisan, but it couldn't have gotten more partisan than the way I put it. LOL I have my own hedge fund. What the hell was I thinking?
No that was pretty dumb all right sock...So when did you decide to attempt to talk politics with the adults ?

And for the record,,,The republicans want every American to be rich..
And not by taking money from working people like me and giving it to his voting base of baby daddies and teen moms on welfare..Hey did you see John Stossel on Redistribution. And how Obama secretly dolled out a billion to black people at the tune of 50,000 each if they claimed to be farmers..It was in Georgia..Did you see it Jammer ?

“Its Eaiser to fool people than”

Since: Sep 11

convince them they are a fool

#12 May 1, 2012
Whoops..Sorry..Jammer isnt the Sock..That would either be Kernel Krackers A radical racist from Phili now in KY I guess.. He also goes by some stupid corn thing ..I cant remember..And some colonel corndog or something...,,,,,Russssh who likes women s socks for some reason..He has a lot of them and likes to bash women.[sock is an alter profile].Its funny these two bash women all day long on the Internet Troll site[[Most people dont know about the IT]..iTS for trolls that cant behave in public.. Mostly cool people except for a half dozen losers..Kernel and Russsh non stop bashing people..Some of them arent allowed in Denver anymore..Russsh and kernel are working on it right now.. Bodacious is one of them. Monsterballer is too..

And you will notice neither will take the sock off to attack me.. Pooooosies

“Invisible Pink Unicorn”

Since: May 08

Location hidden

#35 May 1, 2012
Aggie Nostic wrote:
So, Jammer, should we not allow people to earn more than we see fits?
How will that make anybody else earn more?
And $150k is not rich by any means.
Nothing but envy and misguided anger.
CEO pay is up over 400% over the last twenty years middle class broke even over same time span.

I agree $150K is not rich but I bet those that make that amount can make their house payments, have medical insurance,can save for retirement,send offspring to collage. That dude that is now a scab worker at a cooper tire plant that locked out it's workers right before thanksgivings is only making $15 an hour while management got HUGE pay raises. The one union workers did pay federal taxes the new guys at $15 an hour won't...

“Invisible Pink Unicorn”

Since: May 08

Location hidden

#36 May 1, 2012
Sniper II wrote:
<quoted text>..Dont care..When will you answer to this deflectormouse ? Isnt this the one you ran from last night.
Have you guys seen this yet??? FYI..Compliments of Snipers Copyfacts.com
http://abcnews.go.com/Politics/wireStory/stud ...
Have you seen this.
Health care spending shows slowing trend
http://bostonglobe.com/news/nation/2012/04/28...

Or this one?
The Affordable Care Act - Stronger Benefits to Seniors, Billions in Savings This Year.
http://www.huffingtonpost.com/sec-kathleen-se...

“Its Eaiser to fool people than”

Since: Sep 11

convince them they are a fool

#37 May 1, 2012
Jammercolo wrote:
<quoted text>
Have you seen this.
Health care spending shows slowing trend
http://bostonglobe.com/news/nation/2012/04/28...
Or this one?
The Affordable Care Act - Stronger Benefits to Seniors, Billions in Savings This Year.
http://www.huffingtonpost.com/sec-kathleen-se...
Yes..But I like the republican version of the republican plan the best.When you have other than the same telling about their plan it tends to get distorted..Obamms affordable health plan raises our deficit almost triple in the next 20 years where as They favored Ryan plan lowers the deficit by a trillion in the first year..3 in the first five..We need that..We need to quit providing for those who never paid in and are making a life out of being on welfare.That right there would solve a few billion..Drug/ Alchahol testing welfare people would save even more. Then theres the illegals..That needs to be cut off..All church's and sanctuary organizations need to be cut off..That would save billions.. Obamacare makes people NOT want to be doctors. There are not that many right now.Its worse than people talk about ..Obamacare will have much deeper problems.You just dont see it yet.I hope you do soon.I wont need it but you will.Im grandfathered in.You have a few years and that will be when yours gets replaced..I cant wait to heaR ABOUT IT IF YOU VOTE FOR IT.

“Invisible Pink Unicorn”

Since: May 08

Location hidden

#38 May 2, 2012
Sniper II wrote:
<quoted text>Yes..But I like the republican version of the republican plan the best.When you have other than the same telling about their plan it tends to get distorted..Obamms affordable health plan raises our deficit almost triple in the next 20 years where as They favored Ryan plan lowers the deficit by a trillion in the first year..3 in the first five..We need that..We need to quit providing for those who never paid in and are making a life out of being on welfare.That right there would solve a few billion..Drug/ Alchahol testing welfare people would save even more. Then theres the illegals..That needs to be cut off..All church's and sanctuary organizations need to be cut off..That would save billions.. Obamacare makes people NOT want to be doctors. There are not that many right now.Its worse than people talk about ..Obamacare will have much deeper problems.You just dont see it yet.I hope you do soon.I wont need it but you will.Im grandfathered in.You have a few years and that will be when yours gets replaced..I cant wait to heaR ABOUT IT IF YOU VOTE FOR IT.
Ya do know that a good part that don't pay taxes have full time jobs don't you?
A couple with two children earning less than $26,400 will pay no federal income tax this year because their $11,600 standard deduction and four exemptions of $3,700 each reduce their taxable income to zero. The basic structure of the income tax simply exempts subsistence levels of income from tax.

The second reason is that for many senior citizens, Social Security benefits are exempt from federal income taxes. That accounts for about 22% of the people who pay no federal income tax.The earned income tax credit, the child credit, and the childcare credit account for another 15% of the people who pay no federal income tax.


The rich keep getting richer the middle class is dying while the numbers of poor keep growing.

It don't matter who wins next November in time the rich WILL finish off the middle class,will finish off all social safety nets, then American can take up the Caste system like in India.

“Invisible Pink Unicorn”

Since: May 08

Location hidden

#39 May 2, 2012
Sniper II wrote:
<quoted text>Yes..But I like the republican version of the republican plan the best.When you have other than the same telling about their plan it tends to get distorted..Obamms affordable health plan raises our deficit almost triple in the next 20 years where as They favored Ryan plan lowers the deficit by a trillion in the first year..3 in the first five..We need that..We need to quit providing for those who never paid in and are making a life out of being on welfare.That right there would solve a few billion..Drug/ Alchahol testing welfare people would save even more. Then theres the illegals..That needs to be cut off..All church's and sanctuary organizations need to be cut off..That would save billions.. Obamacare makes people NOT want to be doctors. There are not that many right now.Its worse than people talk about ..Obamacare will have much deeper problems.You just dont see it yet.I hope you do soon.I wont need it but you will.Im grandfathered in.You have a few years and that will be when yours gets replaced..I cant wait to heaR ABOUT IT IF YOU VOTE FOR IT.
RIGHT,
Florida welfare drug testing results for one year.
98% passed the drug test.
Cost of test $178 million
Percent that did not pass 2%
Saving to the state for that 2% 60,000 for the year.
Conclusion:
Winner: Drug testing companies
Losers: Tax payers of Florida.

Level 3

Since: Apr 12

Location hidden

#40 May 2, 2012
Jammercolo wrote:
<quoted text>
RIGHT,
Florida welfare drug testing results for one year.
98% passed the drug test.
Cost of test $178 million
Percent that did not pass 2%
Saving to the state for that 2% 60,000 for the year.
Conclusion:
Winner: Drug testing companies
Losers: Tax payers of Florida.
Feel good legislation is more expensive than I thought. Maybe I should open a drug testing company in Florida. Nobody will complain, except the ones that fail the test. This sounds like a win win for anyone that wants to make a little cash on the side.

“I oughtta be in Nashville”

Level 1

Since: Jan 11

Location hidden

#41 May 2, 2012
Conservatives like this because they think that the taxpayers owe them a living.

“I oughtta be in Nashville”

Level 1

Since: Jan 11

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#42 May 2, 2012
By that, I mean that someone else should pay their share of taxes.

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