The Rich Get Richer and the Poor Get Poorer


One of my bloging friends is against the rich paying more taxes while the poor get more benefits.   Go to:    http://brendabowers.wordpress.com  and read the article.

I have decided to be an advocate for the poor and respond to some of Brenda’s comments. 

Brenda: 

“It is still a fact that 1% of the population is paying 70% of the income taxes. I get so mad when I hear anyone, Obama or anyone else say “Tax the rich!”. We are and have been taxing the rich. I am far, far from rich. In fact, much closer to the poverty line but I know a nations needs the wealthy to invest their money to create jobs and if we tax them too high they will simply move.” BB

 You have made some good points here, in response to this article, but there are some that you have missed.  Now, I understand where you are coming from.  You want everyone to pay his or her fair share.  I would like to point out that this 1% of the very wealthiest that pay most of the taxes also make most of the money.  In other words, of course their percentage is going to be higher.

 Your theory seems to be if they pay most of the taxes then they don’t have the money to invest in business expansion. 

I would like to look at this premise from a somewhat different point-of-view and just throw it out there for consideration. 

Well, I would like to point out that many of these wealthy of the wealthiest business people have been investing their money and expanding their businesses, but just not in OUR country, they’re investing overseas.  The rest who do not own businesses have made their money getting paid outrageous yearly bonuses, because they have saved their companies Billions of dollars, thru everyday business decisions, like setting up off-shore, tax free, bank accounts, in the Cayman’s for instance, which again have allowed their wealthy employers to have that extra cash to invest in more manufacturing overseas. 

Then we have the fund managers who were not given the proper oversight required by the SEC and the CFTC and who succeeded in wiping out many American investors’ stock portfolios, retirement and pension funds thru risky stock investments and unethical commodity day trading practices (remember Enron)?  But these fund managers still collected commissions on trades, risky or not and made millions. 

And then the ultimate big business practice of just out and out lying to the employees and investors convincing them that “the company is doing really well” and that you should “Invest more of your hard earned dollars, cause we’re doing great”, tactics.  Oh, and by the way, telling their employees that they must hold on to their shares for a certain period of time (enough time for the management to dump theirs and make a profit and by so doing bring down the price of the stock). Oh and let’s not forget all the loop holes in the tax law that the wealthiest of the wealthy’s tax attorneys specialize in and help their clients utilize this knowledge by getting some use out of them.

 So, for now at least, since these wealthiest of the wealthy, have succeeded in putting so many Americans out of work by making it possible for their employers and corporate clients to outsource the American manufacturing and service industries and in so doing, hammering that last nail into the American workers coffin, well then I think they deserve to pay for it, in some way, and if it’s paying more taxes then, so be it.  The wealthy are the only one’s left with any money. 

I agree with the concept that all Americans should carry their own weight and pay their own way, but in order to do that they need jobs.  Somewhere, I think it was during the State of the Union address, not too long ago, I know I heard our President say that this year he was going to concentrate on JOBS.  LOL! 

The strangest thing happened after he said that, he has gone on a series of whirlwind trips campaigning for the passage of the Health Care Bill.  In fact he’s put off leaving on one more of his international campaign trips (sarcasm here) to Guam, Indonesia and Australia, for 3 more days so he can do more arm twisting, and back room deals in order to pass a Health Care Bill, that more than half of the American people polled, do not want.  Congress has talked only of Health Care, all I’ve heard is “Health Care, Health Care”.  Well you can’t afford Health Care no matter how cheap it is, if you don’t have a job. Yes, remember this is supposed to be the year we talk about JOBS, JOBS, JOBS.   ss

 Just a short note here* (finally) If Congress succeeds in passing the Health Care Bill, we won’t need to have this discussion at all, because we will all be paying taxes for some time to come.

Advertisements
Explore posts in the same categories: America, American unemployed, Clinton, Congress, Corporate America, Economy, Health Care Bill, Obama, President Obama, state of the union address, Stimulus money, Taxes, Uncategorized, unemployed workers, Unethical Congressional activities, Unethical Congressmen

4 Comments on “The Rich Get Richer and the Poor Get Poorer”

  1. mike10613 Says:

    It would be a good idea if the middle classes and poor could invest in America instead of the rich. They would then have money for retirement and emergencies like illness. America has natural resources; they belong to all but are only exploited for the benefit of the rich. the airwaves for example are used for TV, radio, cell phones, wi-fi; you own a share in that resource and many others. In the UK these resources are licensed by government. The airwaves for cell phones were put out to tender and fetched in 20 billion pounds which the government could have used to benefit everyone, rich and poor alike. It mostly went to the rich as they supply the government.

    Power corrupts, ultimate power corrupts ultimately; the rich are corrupt. They need regulating and excess income taxed heavily.

  2. snappysandy Says:

    Well, Ms. Brenda

    I finally got you to comment on my blog with more that a couple of words. I’m glad to see that I gave you that big boost this morning when you woke up. Come back any time to comment.

    As I said, in my blog, I was, for the purpose of my post, advocating for the Poor. That being said, I actually do understand the side you presented. I do have one or two remarks to make, mostly to explain about what I think you took the wrong way in my post.

    You said: Enron should judge Not all companies. Few investors go into business with the idea of defrauding their stockholders and employees. This frankly is because at some point they are going to get caught and these mighty ones will find themselves in prison for their crimes. Now I know that doesn’t help the investors who trusted them and bought their stock. But here again when you “invest” you are taking a chance with your money and nothing is guaranteed. You are investing hoping to make a larger profit. If you want guarantees then your money should be put in safe CD’s. BB

    My response: Enron’s brokers (not investors) are the one’s who did the defrauding. If you will remember California was having running blackouts, quite a few, and needed to buy energy from the surrounding states, this is done at wholesale prices. Enron’s people thru manipulative trading practices, under the guise of “supply and demand” artificially pushed the wholesale prices up. Therefore, California had to pay more for the wholesale energy they were purchasing from their neighboring states.

    Enron’s brokers artificially pushed the energy prices up, California had to pay more in order to put the lights back on in its state, and Enron made more profits for their company.

    Now, Enron was just an example, there were and have been many corporations that have been in hot water especially, in the last 10 years. There’s World Com, Tyco and Country Wide just to name a few.

    Bill Clinton and his passing NAFTA is what really started the out-sourcing in a big way.
    The Unions are responsible for much of our demise also. It is Congress not making sure that the bills and laws that they passed were being enforced. We have laws on the books Brenda, but no one has been enforcing them. It is the desire to have more; “Greed” and “Power”, that put us where we are today. And it’s not in a good place. We are about ready to implode and why, because of Congress and the White Houses desire to “Spend, Spend, Spend”. We certainly can fix Health Care with just a few changes. Seriously, we can. We don’t need a $1 Trillion dollar investment, which might I remind everyone will be paid 4 years in advance, long before we get the benefits (if there are any) from it.

    We can fix this mess, but not by spending more. We need to reduce taxes for the rich, and we need to build industry back into the framework of this country. Because, and I seriously don’t know why, Americans don’t get it yet, there will be no jobs until we start manufacturing products again. And Congress has wasted 1½ yrs. on a Health Care Bill that no one no matter how cheap it is (and there’s no way in hell it’s going to be cheap) can afford to pay for, if they are not employed.

    So, Ms. Brenda answer this one, what really is the agenda here?

    You don’t have to be a genius to know that if there is no work, there is no pay and then, there is no money to buy Health Insurance. Are they brain dead in Congress or do they think we are? I guess I know the answer to that one, Nancy Pelosi would say, “The American People are”. I guess I would have to agree, with her. If we were paying attention we would do something to stop these people in Congress from destroying our country. You know, maybe we are the dumb ones, because we play by the rules and they do not…………


  3. WOW! I had fun with that! Finally I get a chance to sound off on somebody else’s site. Sandy you are a sweetheart and good for my Monday morning blaws. 🙂 BB


  4. Snappy, Thank you for your reference to my blog.

    The wealthiest 1% of the tax payers pay 70% of the taxes because they are as you say making more money to pay taxes on. However they are also taxed at a much higher rate because we have a “progressive” tax system. They are taxed on their income from wages and again on their investments (capital gains).

    The people with money invest their money in businesses which give the rest of the population jobs. That is they take a chance with their money as in gambling. If the business is not successful then they lose their money. They therefore have a right, in my opinion, to make a larger profit.

    Now for these bonuses. The companies pay these bonuses out of their profits. They take nothing at all from the workers who are employed with the company. The bonuses however does take money from the stock holders in the companies. It is therefore up to the stock holders to complain about the bonuses and not our government or anyone not involved with the company. All stock holders have a right to a vote on the board members who approve these bonuses. I realize it is difficult for a small investor in the company to go up against the board decisions to hand out fat bonuses, but the small investors do have that right if they choose to do the work and make the effort to complain. They also have the right to sell their stock and move their invested funds to another company that pays a higher dividend. They vote with their feet! Money Magazine is a good easy to understand format for understanding how the companies work and what profits they make so investor can make sound decisions.

    Not all companies should be judged by Enron. Few investors go into business with the idea of defrauding their stock holders and employees. This frankly is because at some point they are going to get caught and these mighty ones will find themselves in prison for their crimes. Now I know that doesn’t help the investors who trusted them and bought their stock. But here again when you “invest” you are taking a chance with your money and nothing is guaranteed. You are investing hoping to make a larger profit. If you want guarantees then your money should be put in safe CD’s.

    Now there are many reasons why companies have moved out of our country but the biggest reason is the cost of doing business in the United States as compared to other parts of the world. The more the company pays out for labor and services the less profit they make. Companies are in business to make as much profit as they possibly legally can. The United States taxes companies at a higher rate than many other countries. The wages paid to workers in the United States are higher than many other countries. In fact the wages paid in different parts of the United States are higher that is why many companies relocated to the Southern states. Labor unions and the demands they have made on companies have caused many to leave the country also. and last but certainly not least, the American schools are not turning out workers who are sufficiently educated and prepared for the job market so companies have to educate workers while they are training them. These workers are not contributing to the companies profits but are actually costing the companies while they are being trained.

    All of the cost of doing business that I have mentioned above have to be added to the cost of the companies product and in many cases their product is then too expensive for them to compete on the world market. The American automobile industry is a prime example of companies not being able to compete on the world market due to the cost of their product. It was labor unions and their demands that destroyed the US auto industry. Of course now that the tax payer owns the auto industry they can charge anything they want for their product because there is no need to make a profit. In fact they can under-price their product because the tax payers will just make up the difference. The government owned auto industry can also continue to give the auto workers higher and higher wages and better and better benefits for the same reason: the tax payer will pick up the tab and the company need not make a profit to cover these costs.

    The same rules apply to the soon to be government owned financial institutions. No need to be profitable because the tax payer will pick up the loss. Fannie Mae and Freddy Mac were private companies that had to take care with the mortgages they bought from banks and held for profit. Now that they are owned by the government they are purchasing all kinds of toxic mortgages from banks. The banks are being pushed by congress to make risky loans to people who can not afford to buy homes just as they have been for years now. The Financial Crisis didn’t stop this practice! But now the banks are totally covered because government owned Fannie and Freddy will pay for the risky mortgages and the tax payer is on the hook when they default.

    Now that the federal government has taken over the auto industry and currently part of the financial i9ndustry the government’s liability is so much greater than ever before and the taxes for this indebtedness will be greater than ever before therefore the wealthy have even more reason to move to more stable business friendly countries with lower taxes.

    So you see the wealthy are needed and it behooves our government to make it possible for the wealthy to remain in our country instead of pricing them out. BB


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: