Tag Archives: political economy

All Your Prosperity Belong to Me

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Senator Bernie Sanders (I, VT), who caucuses with the Progressive-Democrats, has joined the Progressive-Democratic Party’s race to the bottom.  The President wannabe has proposed his cynically named For the 99.8% Act, which is targeted explicitly against the 588 Americans he hates the most: the 588 most successful of us.  His bill would deny these few Americans their ability to pass on the outcome of their success to their heirs, their families; his bill would overtly punish these most successful—and their families—for their success.

It’s a bill that’s borne of personal animosity and rank envy.  It’s a bill that would

establish a 45% tax on the value of an estate between $3.5 million and $10 million; a 50% tax on the value of an estate between $10 million and $50 million; a 55% tax on the value of an estate in excess of $50 million; and a 77% tax on the value of an estate above $1 billion….

Sanders rationalized his punitively confiscatory tax by claiming that what’s really needed is

stronger investment in skills, higher paying jobs, and a more progressive tax system.

He is ignoring the fact that the more progressive our tax system, the more it and the purveyors of progressivism punish success.  He is ignoring the fact that folks like the Walton family, the Kochs, and Jeff Bezos—from whom alone he would confiscate some $304 billion—have created more jobs and more higher paying jobs and have done more investment in work skills than anything Government has done.

Sanders is ignoring the fact that that money doesn’t sit in some vault as cash or gold bullion.  It’s invested, plowed back into the economy to create innovation, businesses, jobs, philanthropy, educational opportunities—even health coverage plans—all things Government cannot do as well, if at all.

For all Sanders’ and his Progressive-Democrat cronies’ rationalizations to the contrary, this bill and its ilk are nothing but the actualization of their mindless resentment of the achievements of others.

The Party’s Core Philosophy

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And it even attacks its own.  In a Wall Street Journal article centered on Beto O’Rourke’s potential for a Progressive-Democratic Party Presidential campaign, there appeared this giveaway.

[S]ome Democrats have privately groused that he should have shared some of the $80 million he raised in 2018 with fellow candidates in the party.

There is the Progressive-Democratic Party’s core ideology: their demand to redistribute OPM, ideally to their own special interests.

“That’s not the O’Rourke campaign’s money.  He didn’t earn that.  He had help.”

Gimme, gimme, gimme.

Germany’s Cost of Going “Green”

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Germany is moving decisively to eliminate coal-fired plants as a source for its economy’s energy.

Germany has already banned nuclear power, which was a singularly stupid thing to do—that source of energy already had no CO2 emissions. Nevertheless, the destruction of that industry already is ongoingly expensive.

Merkel’s decision in 2011 to dump nuclear energy by 2022 and to accelerate the build-out of renewable sources such as wind and solar power is already costing them €27 billion [$31.8 billion] each year in the form of a renewable-energy tax.

Despite that, Germany’s Commission on Growth, Structural Change and Employment has laid out the requirement, and the Merkel government seems willing to take it up.

[T]he coal commission advised the government to pay around €50 billion [$57 billion] to the three regions hit by the shutdown of lignite mines to make sure new jobs are created. It also recommended that the government should pay €32 billion [$36.5 billon] to compensate consumers and business for higher electricity prices [annually] and an unspecified amount to indemnify coal power plant operators for the lost value of their assets.

That’s just the inner bound of the cost of “green.”  With black coal mining already shut down—at a cost of €240 billion ($273.7 billion)—this will put coal-fired energy plants out of business.  It’s not just the immediate coal-based energy industry that will suffer.

Biblis, in the Hesse State, used to have a nuclear power plant.  The closure of that plant cost the city 50% of its corporate tax base.  That cascades up the political jurisdiction hierarchy and across the nation.  The increased cost of energy also is hammering German industries that are users, not producers, of energy.

Manufacturing companies, from chemicals maker BASF to carbon fiber producer SGL Carbon, have shifted investments abroad, where energy costs are often a fraction of Germany’s.

Consumers have to pay the higher energy prices, too, and that’s money they can’t spend on other goods and services—which hurts producers of those other goods and services.  All of that is lost revenue for Government, and it’s lost jobs and German prosperity.

What’s the value of changing energy sources if the energy becomes prohibitively expensive and so stunts economic growth and development?

Some Tax Data

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These are via the Tax Foundation and are from 2016, which happens to be the last year of the Obama administration and so represent the culmination of Obama’s tax policies.

  • The share of income earned by the top 1% of taxpayers rose to 20.6% in 2014. Their share of federal individual income taxes also rose, to 39.5%.
  • In 2014, the top 50% of all taxpayers paid 97.3% of all individual income taxes while the bottom 50% paid the remaining 2.7%.
  • The top 1% paid a greater share of individual income taxes (39.5%) than the bottom 90% combined (29.1%).
  • The top 1% of taxpayers paid a 27.1% individual income tax rate, which is more than seven times higher than taxpayers in the bottom 50% (3.5%).

Progressive-Democrats argue, and they’re actually serious, that this isn’t enough.  The rich still aren’t paying “their fair share.”  Cynically, those same Progressive-Democrats refuse to say how much, or what per cent, is the rich’s fair share, beyond saying, “More, more, more.”

Progressive-Democrats’ only principle, when it comes to OPM, is Gimme, Gimme, Gimme.  They have no limiting principle.

It’ll be interesting to see how those data compare with the data for 2019, the first year of the Republicans’ tax cuts and reform.

Increase Spending, Taxes?

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Americans seem to favor that, according to a Fox News poll released last Thursday and discussed on Fox Business Online.

[T]here is broad support for increasing taxes on the wealthiest families. Voters support tax increases on families making over $10 million annually by a 46-point margin (70% favor-24% oppose), and support a hike on those making over $1 million by 36 points (65-29%).
There is less support for a broader tax increase: 44% favor raising rates on those with income over $250,000, and a small minority, 13%, approves of an increase on all Americans.

What would have been interesting, though, and which Fox News chose not to do, would have been to break those preferences out by age group (the poll had only two categories: under/over 45), by income level (again, the poll only had two categories: under/over $50k), by income taxes actually paid in the prior year, and by welfare payments/tax credits received in the prior year.

Trends in those categories might seem too obvious to bother collecting data for, and trends indicated in the last two categories would have been skewed by willingness of respondents to divulge that information, but until data actually are collected, that “obvious” can only be speculative.

The poll itself can be seen here.