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View Diary: Do Tax Cuts for the Wealthy Create Jobs? (20 comments)

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  •  It's Much More Income Compression, Not Tax (3+ / 0-)

    evasion, that is the value of steep progressive taxation.

    Businesses weren't offering the 9 or so million dollar incomes necessary to deliver 1 million or so takehome for the highest brackets. A great chunk of the upper economy was being compensated less, which first makes a rich menu of enterprises interesting to investors who no longer have a few jackpot sectors like finance and import, and second makes that same rich menu of enterprises including public service and charity work attractive to upper end talent, since they too no longer have jackpot income potential in any sector.

    With jackpots being pointless, business wasn't pursuing them, instead managing for the medium and long term growth and health of enterprises. And so we had the sole 50 year period without panics and depressions in our entire history.

    And as a result the wealth of society grew at all levels except the very poor, and the middle class became wealthier compared to the rich as the wealth concentration of the Gilded Age lowed out into our most democratic economy ever.

    Tax avoidance certainly happens but it's a trivial issue compared to stabilizing and democratizing the economy, which is almost the entire purpose of progressive taxation.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Thu Jun 16, 2011 at 05:52:37 PM PDT

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