Taxes to increase income, not to punish the rich | News, Sports, Jobs
Taxes are how we raise the funds needed to run government. The rich can afford most of these costs. These points are particularly linked to a time when the rich have gotten a lot richer and the government needs to do a lot more.
But in arguing for increased taxes on the rich, it is counterproductive to present such a scenario as some kind of fair punishment for those who have accumulated wealth. Many on the left cannot help harming their cause. It is true that American billionaires added $ 1 trillion to their pile during President Donald Trump’s four years. But while the 2017 tax cuts mainly benefited the wealthiest investors, a growing concentration of wealth has continued for decades. So, raise the taxes on these guys because they have the money and not because they are supposedly greedy or in need of moral education. The pandemic has done particularly good things for Silicon Valley businesses that have helped stay-at-home Americans move shopping and work online. They did not create the pandemic. They were just in the right companies when it hit.
So there was no good reason why the Institute for Policy Studies and others ranted against “Profiteers from the pandemic”, a loaded roster of tech entrepreneurs. The dictionary defines the profiteer as the one who makes “Excessive or unfair profit, in particular illegally or on a black market”.
What exactly made Zoom founder Eric Yuan one of the pandemic profiteers? Yuan had no idea when he created his video conferencing service in 2011 that nine years later, economic shutdowns and social distancing would create a huge market for his invention and make him several times a billionaire.
Liberals need to keep in mind that many of the biggest donors to President Joe Biden’s presidential campaign are the very billionaires he wants to raise taxes on. They include the best people like Facebook, Google, and Apple. One of them, Google CEO Eric Schmidt, saw his net worth, now at $ 17.4 billion, increase by 61% during the Trump years.
Note also that several factors influence the perception of the rich on taxes. Some feel a moral obligation to help support the society that has done so much for them. Others find it in their best interests to have good roads, ports and the Internet – things their taxes pay.
the “justice” argument remains valid. The wealthiest Americans have received huge tax breaks while having the option, in many cases, to set their own number for taxable income. Conversely, workers have their taxes automatically deducted each week from their salary.
This makes Biden’s plan to beef up the IRS to go after tycoons who have long chiseled their taxes. IRS Commissioner Charles Rettig said tax evasion robs the government of something like $ 1 trillion a year. Just don’t blame the honest economic winners of the pandemic for the hardships of others. New York State Senator Luis Sepulveda, who represents a working-class area of ââthe Bronx, hinted at this when he said: “It angers me because in the richest city in the world, it is inexcusable to have such a high unemployment rate in a neighborhood.”
Its largely immigrant voters did not lose their service jobs because the wealthy lived elsewhere in the city. They lost them because a deadly virus shut down the companies that employed them.
So there is no need here to tell a moral story about the evils of great wealth. The arguments for raising taxes for those who could most easily pay them are good. Let us stick to this more sophisticated argument and avoid the blame.
Follow Froma Harrop on Twitter @FromaHarrop. She can be reached at [email protected]