Continuing with the taxation theme, I found one comment in the discussion following “Save the Rich, Pay Your Taxes” to be extremely relevant. A reader named Nicholas posted the following:
The average rich person will derive an enormous benefit from government spending compared to the janitor. It’s thanks to public subsidies that most industries are even profitable in the first place. Capitalism works by externalizing costs, socializing losses and privatizing profits. “Private” enterprise is possible at a profit because the public sector (and/or future generations) carry most or all of the costs of pure research, technological development, infrastructure, educating the “human resources,” health and environmental impacts.
The government, moreover, provides direct subsidies and/or bailouts and/or massive contracts to many large corporations, again with the greatest benefit accruing to the rich. The only reason someone can make more than a million dollars a year is thanks to a complex economy that would collapse without the infrastructure and services provided by the public sector.
Oh, and did you notice that in 2008 the unregulated private system that ran exactly by the rules that the capitalists desired failed miserably and 100 percent predictably, and then blackmailed the public sector into rescuing it? This cannot be emphasized enough: In 2008, capitalism failed. By its own rules. And then terrorized the world into rescuing it. And now continues to plunder it.
The janitor is likely to get nothing from the “defense” budget, the wars, the overseas bases, the black budget, or the interest on prior debt (most of it accumulated due to “defense” and war spending or to rescue the banksters). These are already most of the discretionary budget. These end up benefiting shareholders in the big corporations before the janitor gets any (and if he owns a couple of shares of the right item, then bully for him and his negligible windfall).
The post is extremely well-written and contains a plethora of valid points about American-style pseudo-capitalism and the role of taxation in our society. It is a common belief that poor people present a heavier burden to tax-payers than the wealthy. Such a belief is entirely wrong, and ignores the reality of how tax revenue is collected and spent in the United States.
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