My Opinion

Transfer of wealth

I just heard old Bernie talk about the great transfer of wealth over the last thirty years from the middle-class to the top 1/10th of 1% of Americans. 

Listening to that rhetoric makes it sound like there is a finite pool of wealth and that some Americans have grabbed from others. 

Americans have created new wealth, stock markets have risen and fallen and risen again. New industries have been created, new jobs created.  In the process life has been made better and easier for most Americans.  How is all this bad? 

What prudent American does not have the opportunity to participate in this at some, albeit modest level? 

If I invent some new product or service and create new jobs and opportunities is that bad? 

Now in the process I establish a public company and issue stock and give myself millions of shares. That stock grows in value if my company is successful and I find myself with a networth of several billion; am I now a legitimate target of Old Bernie? 

Along the way other shareholders have prospered, perhaps including pension funds or mutual funds held by 401k plans. Employees have jobs that didn’t exist thirty years ago. 

How did this process transfer anything from anyone to anyone else? In fact it created new wealth at many levels. 

Old Bernie is the grasshopper who is envious of the ants and wants his share. So what is America, a colony of ants or irresponsible grasshoppers who merely want to take from others? 😟

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Categories: My Opinion

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5 replies »

  1. This wealth that I have earned, stole or otherwise took from others who did not work for it is invested in mostly my 401K. My 401K is 60% stock, which finances companies who provide, money, services, manufactures, and even have some on shore jobs which other American work at. The rest is in bonds which I am sure a few of them support various government borrowing helping to improve our roads, sewers, or the general welfare. If taking my money prevents me from saving for retirement and gives a lazy person a comfortable living I am all for it because without my savings, there would be fewer jobs and I might be one of the unemployed who would be able to take advantage of Bernie’s free give-a-ways. But until then, I prefer to earn and pay my own way.

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  2. A VAT is not on imports, but in effect a sales tax on most goods and services. Back in 1910 Rockefeller was worth today’s equivalent of $256 billion. So called inequality has always been with us. Corporations are not people. Consider where their money comes from and how it’s used. US corporations are the highest taxed in the developed world.

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  3. I hope some of our politicians read these posts, we do not all expect the government to pay for our college or for anyone to be taxed at 90%

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  4. I do not hate the top 50% and know they pay most of the taxes. But I continue to see the wealthy in this country do so much better than everyone else. This was not the case 40 years ago. I have watched family members incomes go down, when adjusted for inflation, while rich corporations have billions on the books, because of tax breaks that they get that no one else gets.

    We need a tax system that favors no one. Exempt the first $50,000 form taxes for everyone and start taxing from $50,001 and up. no one gets breaks that others do not. Then everyone at the same income level pays the same. Sure the rich will still pay more of the taxes, but they have more of the wealth and can afford to pay it.

    If I made $1,000,000 and if the top tax rate was 39%, I would still have $629,000 after paying my federal tax bill. I think I could make it on that even after paying other taxes, or I would live in TX a state that does not have an income tax.

    Also, the government leaders that we elect are going to have to stop all deficit spending, make some cuts to all programs and stop the 8% growth in government each year. Yes some taxes may have to go up, gas tax, social security tax, which have not been raised in years. Maybe even a VAT on imports. Whatever we do over the next 20 years will shape the economy of the future. If we leave it the way it is, things do not look good for the average citizen.

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    • No U.S. corporation pays the highest rate they use the tax code to not pay taxes. GE paid zero taxes on 4 billion in profits in 2010, because of how the tax laws are written. How is that fair to the average taxpayer regardless GE is not paying their fair share. As far as imports, they should be taxed, because they cost jobs. And more products made in the U.S. would provide more jobs.

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