Ideal Taxes Association

Raymond Richman       -       Jesse Richman       -       Howard Richman

 Richmans' Trade and Taxes Blog



There Is Less Inequality Now Than Ever Before in History
Raymond Richman, 2/12/2019

There is less inequality today than at any time in our history. There is less wealth inequality now and there is less income inequality now than at any time in our history. Those who argue that wealth is more unequal now or that income is more unequal now are using a very narrow definition of wealth and income. They exclude, for example all public goods like public education, public parks, museums, swimming pools, beaches, police and fire departments, international security, water and sewage, streets, legal courts, etc. They do not include ownership of real estate and personal property including autos, boats, clothing, and recreational vehicles. They do not include hospitals, churches, colleges and universities, clubs, voluntary associations, etc. They do not include recreation and entertainment.Baseball, football, soccer, hockey games and other mass entertainments such as movies and television exist for the masses not billionaires.

 In Rome and during the middle ages, there were a handful of royalty and nobles and their staffs who owned all the land with the mass of the population consisting of serfs living hand to mouth or craftsmen living hand to mouth. As far as the masses are concerned poverty was the rule not the exception that it is at present in the USA.

Take a look at our cities: office buildings, commercial buildings, factories, apartment buildings, homes, parks, monuments, etc. Billionaires own a fraction of what you see. Billionaires sleep in one bed at a time, eat three meals a day, have one spouse, and probably have fewer children and a less satisfactory family life on average.

And what is often forgotten is that the wealthy do not take their wealth with them when they die.

What makes billionaires and multi-millionaires? Let us look at how some of them made their money. Bill Gates founded Microsoft; Andrew Carnegie helped create the American steel industry; Mark Zuckerberg invented and founded Facebook; Warren Buffett created a massive industrial firm; Bernard Aarnault developed Europe’s cosmetic and fashion industries; Larry Ellison founded Oracle. Forbes magazine found 2,208 billionaires from 72 countries and territories including the first ever from Hungary and Zimbabwe. This elite group is worth $9.1 trillion. That is a great deal of wealth but their income is probably less than six percent of that or about half a trillion dollars. That is a small price to pay for the millions of jobs they created around the world supporting millions of families.

Sen. Elizabeth Warren has proposed an "ultra-millionaire" tax on the wealthiest families in America. Sen. Bernie Sanders wants to jack up the estate tax for rich heirs. I have some sympathy for Sen. Bernie Sanders’ proposal to jack up the estate tax for rich heirs which Pres. Trump wants to abolish. The estate tax falls mainly on heir who did not innovate or invent. Sen Warren does not differentiate between the income tax and the estate tax. Payroll taxes, which help to finance Social Security, Medicare, and unemployment benefits, are the second largest source of federal revenue, and make up about one-third of total receipts annually. In 2016 the bottom 40 percent of wage earners pay no individual income tax, they face payroll taxes. The Tax Policy Center estimates that 66 percent of taxes collected for 2016 came from those in the top quintile, or those earning an income above $147,700 annually. The top one percent of income earners — those earning more than $717,900 in income per year contribute almost a quarter of all federal revenues collected. (Source: Peter G. Peterson Foundation.)

Your Name:

Post a Comment:


Comment by Jesse, 5/7/2019:

Here's a link to a nice chart that helps illustrate Ray's point. 

https://ourworldindata.org/uploads/2013/12/Global-inequality-in-1800-1975-and-2015.png




  • Richmans' Blog    RSS
  • Our New Book - Balanced Trade
  • Buy Trading Away Our Future
  • Read Trading Away Our Future
  • Richmans' Commentaries
  • ITA Working Papers
  • ITA on Facebook
  • Contact Us

    Archive
    Nov 2019
    Oct 2019
    Sep 2019
    Aug 2019
    Jun 2019
    May 2019
    Apr 2019
    Mar 2019
    Feb 2019

    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Categories:
    Book Reviews
    Capital Gains Taxation
    Corporate Income Tax
    Consumption Taxes
    Economy - Long Term

    Economy - Short Term
    Environmental Regulation
    Last 100 Years
    Politics
    Real Estate Taxation
    Trade
    Miscellaneous

    Outside Links:

  • American Economic Alert
  • American Jobs Alliance
  • Angry Bear Blog
  • Economy in Crisis
  • Econbrowser
  • Emmanuel Goldstein's Blog
  • Levy Economics Institute
  • McKeever Institute
  • Michael Pettis Blog
  • Naked Capitalism
  • Natural Born Conservative
  • Science & Public Policy Inst.
  • TradeReform.org
  • Votersway Blog
  • Watt's Up With That


    Wikipedia:

  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

    Journal of Economic Literature:

  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

    Atlantic Economic Journal:

  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]