To tax the rich is to bell the cat

Actually, one such solution has been tried! And it brought us out of the worst depression in our history. Steeply Progressive Taxation. You simply have to BELL THE CAT! Which of us mice (everybody who’s not rich) is going to put a bell on the cat (those that are rich)? I mean, I could go on for hrs about my favorites, like mutualism, distributism, anarchocommunism. And I believe these would be ideal. But our country did create a successful mixed economy after WWII. And they did it by forcing the rich to pay in taxes for the privilege of being rich. That way you can control inflation, while funding social programs. The basic problem is if you go either too capitalist or socialist, basically too individualist OR too collectivist, you have problems. You have to have balance. A mixed economy. During several epochs in our countriy’s history we’ve done just that. Most recently, progressive taxation as high as 63% (as high as 90% during 1943-63) for the uber rich was used to pay the bills for WWII, and FDR’s New Deal! And for the first time in world history, a massive depression lasting decades DIDN’T HAPPEN after a major war! Instead we had the largest economic boom in our history!!!! And we did it because taxing the rich reduces the amount the rich are willing to pay for quality products. But it didn’t destroy that market! Market prices adjust always to the highest that the highest bidder is willing to pay. By reducing the money available to the rich, it reduced the prices everyone had to pay!! Thus low inflation AND a welfare state! It did this by putting a roof over the economy, in order to fund a floor under our economy! It created a great middle class by squeezing the top earners and the poor together! Instead of widening the gulf between. You compress the economy into the middle class, or you won’t have a middle class. But the paid shills of the rich, the conservative politicians and economists have always fought this. And with increasing vigor ever since Goldwater. And Generation Jones (born 1954-64) especially, and the Baby Boomers, fell for it hook, line and sinker. Thats why we’ve suffered stagflation, and major depression cycles followed by mini booms that benefited only the rich. By doing away with progressive taxation, they cut all viable social program funding. Forcing the poor and middle class to pay just what the rich are able to. AND they tax the middle class on downward, but give tax havens to the rich! That’s why we have the rich getting richer, and the poor getting poorer. It always happens every time Laissez Faire economics becomes the fad! An economics professor, Robert H. Frank at Cornell University, has written much on this subject. You can find his writings at the Non Trivial Pursuits website I took these writings from. One caveat. My favorite article “THE PROGRESSIVE INCOME TAX Theoretical Foundations” has been archived. It is available using the wayback machine. Another, possibly a rewrite, is available at Non Trivial Pursuits. I have included links here:

https://web.archive.org/web/20161224230816/http://nontrivialpursuits.org/Tax_Policy.htm

http://nontrivialpursuits.org/Tax_Policy.htm

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