A Washington Post columnist reports on a group of limousine liberals who are lobbying to pay more taxes. Of course, there’s no law that prevents them from writing big checks to the government and voluntarily paying more, so what they’re really lobbying for is higher taxes on the vast majority of investors and entrepreneurs who don’t want more of their income confiscated by the clowns in Washington and squandered on corrupt and inefficient programs. I debated one of these guilt-ridden, silver-spoon, trust-fund rich people on CNN last year and never got an answer when I asked him why he wanted to pull up the ladder of opportunity for the rest of us who would like to become rich some day. Here’s what the Post reported on the issue:
A group of liberals got together Tuesday and proved that they, too, can have a tax rebellion. But theirs is a little bit different: They want to pay more taxes. “I’m in favor of higher taxes on people like me,” declared Eric Schoenberg, who is sitting on an investment banking fortune. He complained about “my absurdly low tax rates.” “We’re calling on other wealthy taxpayers to join us,” said paper-mill heir Mike Lapham, “to send the message to Congress and President Obama that it’s time to roll back the tax cuts on upper-income taxpayers.” …For them, Obama’s plan to “spread the wealth” (by raising taxes on families earning more than $250,000) is too conservative. “The Obama plan we don’t think goes far enough,” Lapham protested. “We think probably more like the top 5 percent should have their taxes raised.” That would be those above $200,000. “Or go beyond that,” he suggested. … They are among 50 families with net assets of more than $1 million to take a “tax fairness” pledge — donating the amount they saved from Bush tax cuts to organizations fighting for the repeal of the Bush tax cuts. According to a study by Spectrem Group, 7.8 million households in the United States have assets of more than $1 million — so that leaves 7,799,950 millionaire households yet to take the pledge. …Of course, if millionaires really want to pay higher taxes, there’s nothing stopping them. The Treasury Department Web site even accepts contributions by credit card to pay the public debt. …His donation will, however, ease the sense of guilt that comes with great wealth, described poignantly by the millionaires: “In 1865, my great-great-grandfather Samuel Pruyn founded a paper mill on the banks of the Hudson River in Glens Falls, New York,” Lapham explained. Judy Pigott, an industrial heiress on the call, added her wish that her income, “mostly unearned income, be taxed at a rate that returns to the common good that I have received by a privilege.” Confessed Hollender, who now runs the Seventh Generation natural products company: “I grew up in Manhattan on Park Avenue in a 10-room apartment.”
P.S. It’s also rather revealing that Massachusetts had (and maybe still has) a portion of the state tax form allowing people to pay extra tax, yet very rich statists like John Kerry decided not to pay that tax while urging higher taxes for mere peasants like you and me.
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The Massachusetts higher-tax-rate check-off is probably the greatest thing ever. Only a few hundred people ever check it off, despite the referenda to reduce the rate (and put in the check-off) having been opposed by a substantial portion of the voters… obviously most of those who voted against reduced rates forget to check the box!
Dan when am I going to get a free trade video?
The limousine liberal phenomenon should not be discounted because it is real.
To become rich, one typically needs ability and hard work (*). But to become ultra rich one needs perhaps some luck added to ability and hard work.
For example, I do not know much about Bill Gate’s personal affairs and inner psychology. However, I would not be surprised that people like Bill Gates feel they owe something to the world for having been endowed with the luck element in addition to the ability and hard work. To his credit, of course, Mr. Gates funnels 90% of his wealth to charity.
But, for every Bill Gates who succeeds in becoming Ultra Rich there are thousands, also with superior ability and hard work, who only make a few million. Most new businesses (9 out of 10 roughly) end up in failure. Successful entrepreneurs typically become so only after several painful failed attempts and never reach the heights of the few like Bill Gates of Warren Buffet.
So, yes, there is a lottery element to becoming ultra rich. However, like the lottery, if you want people to play the lottery (entrepreneurial lottery in this case) you have to let them keep the winnings. Ultimately, how many people would play the lottery if winnings were taxed at 99% ?
That also means letting descendants benefit from the achievements of the previous generations. Otherwise what would keep a 50 year old capable hard working person with a couple of million under his belt working? Do Americans ever wonder why one finds so many French people in the Caribbean?
America has, more or less, left the rich, and their descendants, keep the fruits of their labor and has remained the most prosperous nation in the world for 100 years doing so. Think well before changing the recipe and following everybody else.
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(*) This is what typically happens in free markets. These days the ability+hard work vs. wealth correlation is starting to fray at the edges, leading to a Greek style vicious cycle, as described in,
https://danieljmitchell.wordpress.com/2010/03/09/good-robber-barons-vs-bad-robber-barons/
There is a character in Ayn Rand’s The Fountainhead (Mitchell Layton) who exemplifies this behavior precisely. He feels guilt for inheriting a massive fortune, and to compensate for his own insecurity, demands an administrative state of central planning. Of course, people like these will always end up as members of the Politburo…