The Myth of Progressive Taxes: Why the Wealthy Pay Less Than You

If you don't pay attention to domestic public policy in the United States, I will simplify it for you. The legislation that was put into effect during the Reagan and Bush presidencies gave huge tax cuts to the obscenely wealthy. Back in the 1950s, corporations used to pay a fair amount of taxes, and the super-rich were taxed at 70%. 

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Most people believe that America has a graduated or progressive tax code, but that is far from the truth. It looks more like an upside-down U because people like Warren Buffett and Bill Gates pay less in taxes than their employees. As Buffet puts it, the American government likes to "take care of the rich."

Warren Buffett himself has admitted that he pays a lower income tax rate than his secretary. He also points out in his many public talks (about how the rich pay too little in taxes) that although the wealthy's net worth has skyrocketed, the average middle-class worker has remained stagnant.

Today, we have a government that likes to omit information and allows politicians to fool the public into letting the rich get away with tax reductions. And, I am talking about the estate tax. Republicans and wealthy capitalists like to call the estate tax the 'death tax' in order to create an Orwellian emotional attachment against it. However, those words are used intentionally as a façade to build momentum for its removal.  However, to be explicit, unless you have more than ten million in net worth, you should be for the estate/death tax!

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The argument often used is that if we raise the capital gains tax, which is set so low that Warren Buffett pays less than his secretary, employers won't have the money to invest in new projects and research. This statement is far from the truth, if not completely false. 

The fact is that most of these wealthy individuals and companies hoard their money. Apple probably still has more money than the U.S. government. Forbes magazine is a publication filled with articles praising the greediest and most selfish people who hoard their money. This plutocratic egotism is also shown in company lay-offs, which actually translates to a higher stock price and CEO bonuses. Just like with the "death tax," most of the super-rich are lying and taking advantage of the American people. With a national debt that is ever growing, the money to repay the debt must come from somewhere... and the rich should foot the bill.

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Other Related blog(s): Nouveau Economics, Lyceum Recordz