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Title: The Social Contract
Source:
The NY Times
URL Source: http://www.nytimes.com/2011/09/23/o ... an-the-social-contract.html?hp
Published: Sep 23, 2011
Author: Paul Krugman
Post Date: 2011-09-23 10:11:31 by war
Keywords: None
Views: 13907
Comments: 45
This week President Obama said the obvious: that wealthy Americans, many of whom pay remarkably little in taxes, should bear part of the cost of reducing the long-run budget deficit. And Republicans like Representative Paul Ryan responded with shrieks of “class warfare.” It was, of course, nothing of the sort. On the contrary, it’s people like Mr. Ryan, who want to exempt the very rich from bearing any of the burden of making our finances sustainable, who are waging class war. As background, it helps to know what has been happening to incomes over the past three decades. Detailed estimates from the Congressional Budget Office — which only go up to 2005, but the basic picture surely hasn’t changed — show that between 1979 and 2005 the inflation-adjusted income of families in the middle of the income distribution rose 21 percent. That’s growth, but it’s slow, especially compared with the 100 percent rise in median income over a generation after World War II. Meanwhile, over the same period, the income of the very rich, the top 100th of 1 percent of the income distribution, rose by 480 percent. No, that isn’t a misprint. In 2005 dollars, the average annual income of that group rose from $4.2 million to $24.3 million. So do the wealthy look to you like the victims of class warfare? To be fair, there is argument about the extent to which government policy was responsible for the spectacular disparity in income growth. What we know for sure, however, is that policy has consistently tilted to the advantage of the wealthy as opposed to the middle class. Some of the most important aspects of that tilt involved such things as the sustained attack on organized labor and financial deregulation, which created huge fortunes even as it paved the way for economic disaster. For today, however, let’s focus just on taxes. The budget office’s numbers show that the federal tax burden has fallen for all income classes, which itself runs counter to the rhetoric you hear from the usual suspects. But that burden has fallen much more, as a percentage of income, for the wealthy. Partly this reflects big cuts in top income tax rates, but, beyond that, there has been a major shift of taxation away from wealth and toward work: tax rates on corporate profits, capital gains and dividends have all fallen, while the payroll tax — the main tax paid by most workers — has gone up. And one consequence of the shift of taxation away from wealth and toward work is the creation of many situations in which — just as Warren Buffett and Mr. Obama say — people with multimillion-dollar incomes, who typically derive much of that income from capital gains and other sources that face low taxes, end up paying a lower overall tax rate than middle-class workers. And we’re not talking about a few exceptional cases. According to new estimates by the nonpartisan Tax Policy Center, one-fourth of those with incomes of more than $1 million a year pay income and payroll tax of 12.6 percent of their income or less, putting their tax burden below that of many in the middle class. Now, I know how the right will respond to these facts: with misleading statistics and dubious moral claims. On one side, we have the claim that the rising share of taxes paid by the rich shows that their burden is rising, not falling. To point out the obvious, the rich are paying more taxes because they’re much richer than they used to be. When middle-class incomes barely grow while the incomes of the wealthiest rise by a factor of six, how could the tax share of the rich not go up, even if their tax rate is falling? On the other side, we have the claim that the rich have the right to keep their money — which misses the point that all of us live in and benefit from being part of a larger society. Elizabeth Warren, the financial reformer who is now running for the United States Senate in Massachusetts, recently made some eloquent remarks to this effect that are, rightly, getting a lot of attention. “There is nobody in this country who got rich on his own. Nobody,” she declared, pointing out that the rich can only get rich thanks to the “social contract” that provides a decent, functioning society in which they can prosper. Which brings us back to those cries of “class warfare.” Republicans claim to be deeply worried by budget deficits. Indeed, Mr. Ryan has called the deficit an “existential threat” to America. Yet they are insisting that the wealthy — who presumably have as much of a stake as everyone else in the nation’s future — should not be called upon to play any role in warding off that existential threat. Well, that amounts to a demand that a small number of very lucky people be exempted from the social contract that applies to everyone else. And that, in case you’re wondering, is what real class warfare looks like.
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#1. To: war (#0)
(Edited)
America has the most progressive tax system in the world. The U.S. government soaks successful people like no other country. America is not a closed economy. We have to compete for investment in innovation and productive capacity with countries around the world. This is what the lunatic left is utterly incapable of comprehending because they have been blinded by their envy.
Obama's job is now clear. Only a Black Man as POTUS could propose the Elimination of the SS/Medicare $$$. Everything else is a smoke screen to get that. O, and keep the banksters out of court.
Do you think that the 50 percent who pay no federal taxes should have their taxes increased? I do. It isn't fair that some deadbeat doesn't pay any taxes. Gets free food, and free healthcare. Paul Krugman is a liar just like Obama. The rich pay the majority of the taxes. Why do you think him and Obama are lying about this fact?
The average federal income tax for the lower 47% of income earner is -2%. It's negative because of various refundable tax credits. America has the most progressive tax system in the world. We also have the highest corporate tax rate in the world. These are key reasons why businesses (including Obama's buddies at GE) are moving their operations elsewhere. These left lunatics still think it's the 1960s when Sweden had a top tax rate over 100%. Those days are gone. Today, smart countries do whatever it takes to attract business investment. The U.S. government pushes business away with taxes and crazy regulations. The lunatic left wants to make it even worse. They are insane.
Your prefacing statement regarding the % of people "who pay no federal taxes" is incorrect.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
What do you believe that table is showing?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
If true then that's a positive. We also have the highest corporate tax rate in the world. These are key reasons why businesses (including Obama's buddies at GE) are moving their operations elsewhere That statement has been shown to be false here so many times over that it's insanity to promote it as truth. Couple that to the fact that no other nation allows its domciled corporations to expatriate income and it becomes even sillier...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
As per the above: This "Progress" people speak of: Where is it? Always pretending that things are OK when they clearly are not — that's the Downfall, the beginning of the end. And we are now well past the beginning of the end. Recognizing our collective failures — that would be Progress. So how does Amerika get back to where it was a shining city? Do the Top 400 actually think they can live in their private cities while the Bottom 99% grovel? Really? Gold at $1500 by the end of next week. Oil in the $60's. But more expensive than ever.
Just curious. Did you actually graduate from high school?
What do you think Share of taxes of richest decile means?
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
The United States is a tax haven!
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
That left a mark lmao.
Proxy IP's are amusing.....lmao
No, it doesn't. http://elsa.berkeley.edu/~saez/piketty-saezJEP07taxprog.pdf
The Left-wing loonies at Berkeley versus an international organization who doesn't give a hoot about American politics. hmmm.... The Berkeley paper is a "historical" analysis. And it was written 4 years ago. How is this relevant to the situation? Oh, it not. Thanks.
If income concentrated at the top is what an economy needs then the fact that we have the highest income concentration in the industrialized world indicates we should be doing pretty well.
yada, yada, yada, blah, blah, blah... completely irrelevant... Welcome to left-wing loony land.
So you don't have a problem taxing the rich? If not could you explain your reasoning again?
My understanding of your argument here is that if we take income from the job creators we will be at a disadvantage with respect to the other countries who tax their job creators less? From that I conclude you are saying more income concentration is good for economic growth.
Yeah, I saw your response. I'm not expecting the leftists to face the FACTS that you presented; instead, they will deflect, manipulate, distort... anything to avoid those facts.
To :Skippy, toe-jam, old man Fred Alzheimers Mertz, _jim, loonymom/ming, e-type-jackoff, goober56, Wrek, calcon, dummy DwarF, continental op, Biff, gobsheit and meguro There isn't any possibility of broaching the libTURD'S invincible ignorance with mere TRUTH. But I admire you setting it out there for those who have not yet passed the point of return into the insanity that libTURDISM truly IS. "The TRUTH is mighty and SHALL prevail!" With the efforts of folks like you.
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
Here's the problem: You and other leftists have a fundamental misunderstanding about who the job creators really are. Bill Gates was a pimpled faced college drop out 40 years ago. Now he is one of the wealthiest people on earth. In the process, he revolutionized how we work and play and created 10,000 millionaire Microsoft employees. Today, Microsoft is struggling to stay relevant. They sill make a lot of money, but unless they make big changes soon, they are going to get locked out of the next wave just like former industry giants Dec, Compaq, Borland, Novell, Burroughs, and so many others who are now out of business. On a completely different scale, my dad used to own an auto repair shop. One day this grubby, dirty guy came in and asked my dad if he could save his old car batteries instead of tossing them. The guy came around every week to pick them up. At night, he would break them open and recycle the lead (this was the 1970s -- long before Obama decided the government needed to create "green jobs"). Pretty soon he had so much business that he had to start hiring people to pick the batteries up for him. He'd spend his days talking to new customers, while he recycled the batteries at night. He became a millionaire because he saw an opportunity and worked hard to go after it. Even after he became a "millionaire" he still worked hard to please his customers because this was his business. The point is that we need to facilitate new ideas, new innovations, and new people willing to take a risk. The current system with their bailouts and subsidies and all of the rest is hurting America. It's not hard to make $250,000 a year in America. It takes an idea, a willingness to take a risk, and hard work. Many people that get to the $250,000 level go on to make more because they have a great idea and work hard to build their idea into something substantial. When they do that, they create jobs. Sometimes, like Bill Gates, they create a lot of jobs. Here's the problem: when you do make 250,000 a year two things happen: A.) your middle class tax deductions start disappearing (they start disappearing at $175,000), and B.) you reach the top tax rate. It's a double whammy. This hurts people who are trying to create something new and innovative. That harms America. Why do you want to harm America???
I'm not trying to convince the lunatic left. I'm trying to state the facts so that people who are in the "middle" can make a good choice and reject the lunatic left.
JW, thats 100% on the money, no pun intended. I wish I had written it.
Proxy IP's are amusing.....lmao
Thanks and yes it is the truth. You are a small business owner. You get this. The left just doesn't understand. I don't sleep much. I was channel surfacing yesterday at 4:30 AM Pacific or so and I caught "Morning Joe". They had some woman who is challenging Scott Brown for the Senate next year. They kept calling her "professor". Are the Democrats going to run another no- nothing academic for office??? I think so. People are sick of it. They want someone who can get results.
The left just doesn't understand. Yes, I am. Yes I do. The Left chooses not to get it. Once you understand that, their insanity almost makes 'sense'.
Proxy IP's are amusing.....lmao
? That's what I said that you were doing man.
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
Well... Let's talk about the left their terms. There are two groups in the left: A.) An idiot left who actually believes the nonsense. B.) A tyrannical left who exploits the idiot's beliefs to stay in power.
So what? Corporations don't pay taxes, people do.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
That must be Elizabeth Warren. I'm surprised you've never heard of her.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
insane libTURD IDIOT; So what? Corporations don't pay taxes, people do. Here's a great example of your IDIOT "left".
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
You're out of your mind. I've been reading your posts for however long now and any sense that can be categorized as common waved Bye-byes to you a loooong time ago. Let's put it this way...the guy who was recycling the lead from batteries...how much did he pay the people who picked up for him?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Any talk of increasing tax's on the Rich is just Globalist code speak for attack the middle class.. Like fighter planes going after a bomber formation with no fighter escort.
I'm not...I'm telling you here and now that this guy is fucking dumb.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Wha...huh?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
November 2012 she will be Senator Elect Warren. Hope he knows her by then.
You do know that Bush and Barky come from the CFR and Trilateral Group, basically.....the 2 Elites playing Tennis...then retire court side for drinks and to conspire further Globalism. UN Agenda 21 mandate is to strip away the right for private citizens or others...to own property. Bush 41 Signed America away under UN Agenda 21 Barky the CIA cutout sock puppet [teleprompter read capable]....is Bush 4.0 There ALL working towards the Globalism.....they have all conspired against America.
Please quote, and/or link to the exact language that takes away the right of people to own private property.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
I bet he'll know the Republicon candidate's Cosmopolitan spread.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Which middle class deduction are you referring to? I don't see why someone in that position would be less motivated to make more money by having to pay a little more in taxes. If they have a good idea and there is a demand for their product or service they will do well. If they don't, they won't. With or without the taxes.
Comments (41 - 45) not displayed.
Top • Page Up • Full Thread • Page Down • Bottom/Latestwealthy Americans, many of whom pay remarkably little in taxes
Country Share of taxes of richest decile Share of market income of richest decile Ratio of shares for richest decile (1/2) United States 45.1 33.5 1.35 Ireland 39.1 30.9 1.26 Italy 42.2 35.8 1.18 Australia 36.8 28.6 1.29 United Kingdom 38.6 32.3 1.2 New Zealand 35.9 30.3 1.19 Canada 35.8 29.3 1.22 Netherlands 35.2 27.5 1.28 Czech Republic 34.3 29.4 1.17 Germany 31.2 29.2 1.07 OECD-24 31.6 28.4 1.11 Finland 32.3 26.9 1.2 Slovak Republic 32 28 1.14 Luxembourg 30.3 26.4 1.15 Belgium 25.4 27.1 0.94 Austria 28.5 26.1 1.1 Korea 27.4 23.4 1.17 Poland 28.3 33.9 0.84 Japan 28.5 28.1 1.01 Norway 27.4 28.9 0.95 France 28 25.5 1.1 Denmark 26.2 25.7 1.02 Sweden 26.7 26.6 1 Iceland 21.6 24 0.9 Switzerland 20.9 23.5 0.89
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#2. To: war (#0)
#3. To: All, capitalist eric, badeye (#1)
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#4. To: war (#0)
It was, of course, nothing of the sort. On the contrary, it’s people like Mr. Ryan, who want to exempt the very rich from bearing any of the burden of making our finances sustainable, who are waging class war.
#5. To: A K A Stone (#4)
(Edited)
Do you think that the 50 percent who pay no federal taxes should have their taxes increased?
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#6. To: A K A Stone (#4)
Do you think that the 50 percent who pay no federal taxes
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#7. To: jwpegler (#1)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#8. To: jwpegler (#5)
(Edited)
America has the most progressive tax system in the world. .
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#9. To: All (#2)
#10. To: A K A Stone (#4)
Why do you think him and Obama
#11. To: jwpegler (#1)
America has the most progressive tax system in the world. The U.S. government soaks successful people like no other country.
#12. To: jwpegler (#5)
Today, smart countries do whatever it takes to attract business investment. The U.S. government pushes business away with taxes and crazy regulations.
#13. To: jwpegler (#3)
#14. To: lucysmom, jwopperpegler (#11)
America has the most progressive tax system in the world. The U.S. government soaks successful people like no other country.
#15. To: Skip Intro (#14)
(Edited)
http://elsa.berkeley.edu/~saez/piketty-saezJEP07taxprog.pdf
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#16. To: jwpegler (#1)
(Edited)
America is not a closed economy. We have to compete for investment in innovation and productive capacity with countries around the world. This is what the lunatic left is utterly incapable of comprehending because they have been blinded by their envy.
#17. To: NewsJunky (#16)
(Edited)
If income concentrated at the top
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#18. To: jwpegler (#17)
#19. To: jwpegler (#17)
#20. To: jwpegler (#3)
From: Capitalist Eric Message:
You're SOCIALIST morons. ESAD.
#21. To: jwpegler (#1)
America is not a closed economy. We have to compete for investment in innovation and productive capacity with countries around the world. This is what the lunatic left is utterly incapable of comprehending because they have been blinded by their envy.
#22. To: NewsJunky, badeye, capitalist eric, CZ82, Get Outta Dodge! (#19)
(Edited)
My understanding of your argument here is that if we take income from the job creators we will be at a disadvantage with respect to the other countries who tax their job creators less? From that I conclude you are saying more income concentration is good for economic growth.
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#23. To: Mad Dog (#21)
There isn't any possibility of broaching the libTURD'S invincible ignorance with mere TRUTH.
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#24. To: jwpegler (#22)
#25. To: Badeye (#24)
(Edited)
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#26. To: jwpegler (#25)
You are a small business owner. You get this.
#27. To: jwpegler (#23)
#28. To: Badeye (#26)
If you build a 30-foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good -- Rick Perry
#29. To: war, jwpegler (#8)
We also have the highest corporate tax rate in the world.
#30. To: jwpegler (#25)
They had some woman who is challenging Scott Brown for the Senate next year. They kept calling her "professor". Are the Democrats going to run another no- nothing academic for office??? I think so. People are sick of it. They want someone who can get results.
#31. To: jwpegler, lucysidiotmommy (#29)
sane person; We also have the highest corporate tax rate in the world.
#32. To: jwpegler (#22)
It's not hard to make $250,000 a year in America
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#33. To: war (#0)
#34. To: lucysmom (#30)
I'm surprised you've never heard of her.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#35. To: Parrot with speed dial (#33)
Any talk of increasing tax's on the Rich is just Globalist code speak for attack the middle class..
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#36. To: lucysmom (#30)
"That must be Elizabeth Warren. I'm surprised you've never heard of her."
#37. To: war (#35)
(Edited)
Its mandate is to change the middle class in stages.
Emperor Clinton signed all those Presidential Executive orders effectively taking away all power from the Constitution and States Rights which the Founders crafted to protect them from Government.
Bush 43 leaves the border wide open,.....26 Million rush inside the wire,
War orgy
Outsourcing orgy,...
Subprime Banker blow out,.....TARP party,
Nation Trillions in debt.
More troops in the field,...more predator drone attacks.....more foreign intervention
and more Debt.....now the Nation is a dug grave.
#38. To: Parrot with speed dial (#37)
UN Agenda 21 mandate is to strip away the right for private citizens or others...to own property.
#39. To: Ferret Mike (#36)
November 2012 she will be Senator Elect Warren. Hope he knows her by then.
#40. To: jwpegler (#22)
Here's the problem: when you do make 250,000 a year two things happen: A.) your middle class tax deductions start disappearing (they start disappearing at $175,000), and B.) you reach the top tax rate. It's a double whammy.
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