FW: Re: the rich and corporate parasites Re: [LINK] Why so many of us think we're overtaxed

Deus Ex Machina vicc@cia.com.au
Wed, 26 Feb 2003 08:00:38 +1100


Viveka [listmail@karmanaut.com] wrote:
> 
> >however the facts bear out a different story:
> >
> >http://www.ncpa.org/pi/internat/pd062601c.html
> 
> All I see at that link is a string of assertions, implying causality 
> without evidence. Facts alone don't make an argument - there must be 
> logic as well.
> 
> Incidentally, the NCPA also say that global warming is science fiction:
> http://www.ncpa.org/edo/sb/2003/sb012203.html

dont get hung up on ncpa use google

http://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=irish+economic+miracle&btnG=Google+Search


> >what people should realise is that there will always be inequality 
> >and the larger the economy
> >the larger the inequality will be. the notion of trying to improve 
> >everyones lot without creating
> >inequality is a myth and has historically proved to be unworkable.
> 
> What is the evidence for this link you assert between increased 
> overall prosperity and increased inequality? I consider inequality 
> itself to be a societal negative - it creates incentive for the 
> disenfranchised to subvert or overthrow the system. Why not increase 
> prosperity and equality at the same time?

sorry socialism/communism has failled everywhere its been tried. there is still
inequality and there are still people that want priveldges and power and wealth.
trying to suppress this on a large scale has never really worked.

> >my points are simple, cuting taxes will stimulate the economy which 
> >will create more wealth which
> >will in turn create a wider distribution of wealth curve and the 
> >apparent contradiction
> >that for the many to benefit a few always will benefit far more.
> 
> If tax cuts are intended to stimulate the economy by increasing 
> spending, they should be targeted at people who already spend 
> everything they have, and who would spend more if they had more. In 
> other words, people without savings; the poorest of us. Tax cuts for 
> those who already have large stores of wealth will not stimulate the 
> economy nearly as much.

sorry people with large wealth generally dont have it sitting as cash in the bank
the reason they get wealthier is its generally invested in income producing assets.
people with low ambition or without the interest or know how to generate wealth
fall behing as the economy grows. keep in mind most economies are targeted to grow at
a few percent a year. so if your net worth is not keeping up with inflation and GDP growth
you are falling behind. wealthy people get ahead by having a return greater then both
inflation and GDP growth. this creates the perception of the rich getting richer and
the poor getting poorer. its inevitable if one targets economic growth.

think about it this way as the pie gets bigger if your share is invested in growth
assets then you can keep your precentage of the pie. if your slice of the pie is not
and only based on an income then and no growth assets then your percentage slice of
the pie gets smaller. this creates the perception of greater and greater disparity.
but in reality is just a statement about the increasing size of the pie. the US economy
is roughly an order of magnitude bigger then ours and its top CEOS get an order of magnitude
more pay.

as for tax cuts to the poor this will not do much for the ecomony long term, for a start they
generally dont invest in corporates that generate employment and the economic
growth our governments target. its the old give a woman a fish or teach her to fish. there is 
really nothing to be gained long term from handing out fish to the poor from a national economic
point of view. however give money to the upper half who understand investment and finance and
they generate prosperity for all. sounds inhuman but history has shown thats the way it works.

when I look at people that I know that have been given a compo payout they do really smart things like
buy cars or boats or take big hollidays. proving they either have no interest in generating any long term
wealth or just plain dont know how to.

(as if its not a tautology) the irish case clearly shows that business is the driving force behind the economy.
Ireland halved its tax rates more or less and more or less doubled its tax income.

Vic