This tax on millionaires is all theater, a grand Kabuki, a Fandango amongst the 1%ers, the Congress, and the Administration, each dancing to their own special interest hip hop.
The House and Senate Majorities persisting in discriminatory taxation; resisting tax increases on the middle class but not tax fairness for all; the Administration subversively cynical about the canard that taxes on the rich must help pay for a more equal society. Senate Republicans and the 1%ers, sitting, like the vultures they are, on the edge of the negotiating table waiting for the inevitable disgorgement of even more spoils (tax breaks) that will never reach the minions.
It's all a sham because none of
our erstwhile elected or appointed officials in senior most positions, their
Briefly, Nixon abandoned the
Bretton Woods Agreement and the
We became a sovereign, fiat currency nation with a flexible exchange rate. We were the currency monopolists, the sole issuer of the dollar or its surrogate. Which means that we could never be insolvent in our own currency, we could never have programs that depended upon revenue for their funding, so neither could they face insolvency.
Since a fiat currency nation can create all the dollars it needs, logically, and operationally it is not constrained by revenue to spend. Government must first spend before it can tax or borrow. It is, then, axiomatic that taxation and borrowing per se, do not fund any of the government's obligations.
Warren Buffett and his 1%ers know this. From that one event in 1971 the rich had their effective tax rates cut during 1972-1985 from 75% to 35%. They know today that the Federal government is not constrained by revenue to spend, therefore, they want as much of their income and profit as they can keep. They pay millions for these favorable tax code changes. The rest of us, didn't get the memo on the paradigm shift in monetary/tax policy and how it all operates.
Therefore, we're stuck with enormous constraints on how much we keep of what we earn. Since what we transfer to the government isn't used to finance the Federal government.
Fiat Currency Tax Cut for the Rich by Anonymous
The operational fact that a sovereign, fiat currency nation can create all the currency it needs also means that the Gov. only has to protect against inflation and deflation and it does that by taxing us to keep us from spending too much which could generate inflation.
www.moslereconomics.com (Seven Deadly Innocent Frauds of Economic Policy)
YES, we've been punked.
Monetary inflation is lower now than at anytime in the past twenty years, yet we're being taxed to death and the stupid elected officials believe that deficit spending is bad when we've got 30 million Americans unemployed. What's worse, is that they can't fathom that we get rid of national debt through with a full employment policies which means short-term deficit spending, not by leaving 120 million Americans near, at or below the poverty level.
The tax cut Republicans should support are all taxes designed to reduce disposable income no matter what the income level or source of the tax. Since we are no where near anything even close to problematic monetary inflation, (2%), there should be a minimal income tax to serve, now, as a thermostat guarding against inflation. A total effective tax for all income earners of no more than 3% allowing for all eligible tax code allowances, credits and deductions.
The Administration and the Congress either do not know, or if they do know, don't care, that current tax rates now, with real unemployment at 22%, are counter productive to economic growth objectives. (I see no strategy in what the Administration or Congress has done to reduce unemployment or increase disposable income.) Recent increases in gas prices will neutralize the 2% FICA tax holiday anyway.
That FICA tax, and taxes from millionaires pay for nothing, they are simply a record keeping mechanism used by the