Taxing the rich in
America
The politics of plutocracy(富裕層の政治)
America’s rich should pay more, but there is no need to raise their income-tax rates
America’s rich should pay more, but there is no need to raise their income-tax rates
Article
Americans have long considered wealth something to admire and
pursue. But this is no ordinary election. And so the rich are now a campaign issue.
Democrats say only the top 1%
need pay more. Barack Obama calls for “millionaires and billionaires” to “pay
their fair share”
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Republicans shoot back that
raising any taxes would destroy jobs and business confidence. They think you
can fill the budget hole by spending cuts alone.
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Neither side is talking sense. (1) America’s
rich should indeed pay more tax;
but (2) marginal rates should not go up (Others will have to pay too.).
Why?
(1-1) Technological change and globalisation have sharpened demand
for the rich who have done so well from recent trends (superstars).
(1-2) Tax policy (George Bush junior slashed top income-tax rates as
well as rates on dividends and capital gains) has exacerbated this trend. Equalising
would make it possible to lower America’s corporate tax rate.
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(2-1) Restoring the top income tax rates would raise revenues of only
about 0.3% of GDP and do nothing to make America’s complicated tax system
more efficient.
(2-2) Loopholes and deductions, currently worth up to 7% of GDP, distort
behavior and mostly benefit the affluent.
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Discussion
1) Do you agree/disagree with the
Economist’s opinion? It sounds equivocal picking up insistences from both
sides. Which side do you prefer to support?
2) Japan has the same issues of income
inequity and fiscal reconstruction. What can we do based on the article’s
point of view?
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