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Too much still isn’t enough

The basic premise behind the various conservative tax plans advancing at the General Assembly is the same old trickledown economic argument we’ve heard for decades: If we tax rich people and profitable corportations less, they’ll hire more workers and everything will be be hunky dory.

The only problem with this theory, of course, is that it’s a fantasy. For the latest confirmation of this hard truth, check out this report from the Economic Policy Institute which shows that CEO pay continues to skyrocket.

And also, check out the following remarkable graph based on the report from Too Much, an online newsletter from the good folks at Inequality.org:

CEO pay

The bottom line: You simply can’t give rich people and large corporations enough. No matter how much government slashes their taxes, inequality only gets worse.

5 Comments

  1. Doug

    July 1, 2013 at 4:52 pm

    It is quite thequandry. You know the exact same thing can be said of government as well. It would not take too long to find the same type of analysis saying the same thing when it comes to government in that if you “contribueted” every dollar of GDP to government…it still would need more.

    It is also fantasy this tax the rich and corporations all would be well.

    First off, where do corporations get their income from? Yes…you who pays for their goods and services. Any tax increase is just passed on in the form of price increases.

    Second, have you looked at how small the contribution would be if we taxed ALL the income from say the richest 5%. It is a drop in the bucket now that we are ~$17 trillion in the hole due to all the government handoutts, and how many Billions is the state in the hole due to handouts? At least $3 billion due to the rich unemployment schome of past democrats….we see where that got you.

  2. gregflynn

    July 1, 2013 at 5:37 pm

    Conservative logic is fascinating. To motivate an individual to make money you must deprive him of money, not give it to him. To motivate a corporation to make money you must give it money, not deprive it. And here I thought corporations were people.

  3. Bill W

    July 2, 2013 at 11:16 am

    1. It’s not about how much money taxing wealthier persons creates, it’s about fairness.
    2. If all corporate tax increases are just passed along to consumers, why are the corporations bellyaching so much?

  4. Doug

    July 2, 2013 at 11:22 am

    Greg, your post makes absolutely no sense.

    First, where does the government “motivate” an individual to make money? It only gives handouts. Plus my comment does not advocate for depriving anyone of money….that is actaully the progressive view…..which I agree it does not make sense to deprive a productive member of society of their earnings by government confiscation, so I assume we agree.

    Second, Where does your corporation blurb come from? I do not see where I advocated for “giving” a corporation any money. Just taking the tax out of the equation….thus refraining from confiscating a given consumer’s money takes the corporation out of the equation.

  5. Doug

    July 2, 2013 at 4:31 pm

    Bill,
    Fairness? According to who? If you mean the majority of NC voters, then what is being put in is fair…these people have been fairly elected to clean up the years of unfairness pushed upon us by the past dem regimes.

    Corporations spend huge amounts of money on preparing taxes, so in addition to the tax rates they would potentially save a lot of money on not having as many people to staff tax departments, less time on the regulatory burden etc.

    Plus, do you ever bellyache when cutting a tax check? I am sure like every true progressive you enjoy either writing that check or looking at that line on your paycheck and have visions of unicorns and rainbows because all is right with the world. Actually…I doubt that because progressives only like it when OPM is going to the government so I would guess there is some bellyaching in the Bill W household.