Sometimes the level of stupidity in the public debate is simply mind boggling. If you can think for yourself, and add and subtract, this discussion might be interesting.
First, we hear that the top one percent need to pay their fair share of tax. So before you read any further, what would you consider a “fair share” for the richest 1% of people? How much of the total tax burden should they pay for?
Ok, let’s get on with our facts:
- the top 1% pay 45% of total taxes.
- the total assets of all the billionaires in the country is about $2.5 trillion.
- the federal government spends about $4.5 trillion per year.
So let’s Play With Numbers a bit. There’s a big push these days (early 2019) to “eat the rich”; take all the money from the billionaires and make a Better Society. So let’s go with that. Suppose we take all their money. Wait, let’s do this typical left-wing-revolution style: let’s bust down their doors in the middle of the night, drag them out into the street in their pajamas, and put a bullet in the back of their head. Mao, Stalin, Lenin, Pol Pot, Castro, Guevarra and all the Legends of Socialism will be smiling down on us. Ok, so now we have their $2.5 trillion. First question: how long can we run the federal government with that money? That’s right: almost a whole 7 months!!
Ok, so by July 15th we are out of money again. And now that we’ve decimated the top 1% (not precisely correct, but still), what has happened to our tax revenue? Oh, my, it’s dropped by 45%! So we can still make it through this year, but next year we need to cut government spending by almost half. And there ain’t no more rich people to go after. Darn.
And actually, let’s go back to our first point. How do you think billionaires hold their money? Do you think there’s a billion dollar bills under their beds? Actually, it’s all invested in companies, houses, cars, yachts, artwork, lent out to the government, etc. So when we take all the billionaire’s wealth, the government will have a bunch of Van Gogh’s, treasury bonds, and gated mansions. How exactly are they going to use this to help society? And don’t say “sell them and use the money” – once all the rich people are dead, who will pay $200 million for a Van Gogh? I suppose we could give it to a poor family, and they could use it to start their fireplace. That would certainly improve society. And all the homeless people could go live on George Clooney’s yachts.
Lots of companies need investment to start up and create jobs and innovative goods and services. Where does investment come from? You guessed it, it comes from rich people. But now they are all gone. How are new companies going to start up now? The goverment can’t give any money – their revenues are down 45% (not to mention they almost never invest in anything worthwhile – how many solar panels did Soladyne manufacture?).
I showed these simple numbers to my high schoolers – they got it immediately. Which doesn’t say too much about the blithering idiots in Congress, who are signing up for the Green New Deal, which is expected to cost $100 trillion. I’m not sure how we are going to survive with some of the biggest morons in the country in leadership positions. Maybe we can get Jim Carey’s “Dumb and Dumber” character to run for office.
I used to be very interested in Chinese history. If you read about the 1960s, you can see how the Great Leap Forward led to the Cultural Revolution. They killed all the rich people and then had 15 years of unimaginable poverty. Only when Deng started to allow a market economy did things begin to improve. And by embracing market economics, in one generation China lifted over a billion people out of abject poverty. Read about the Cultural Revolution – it seems our leaders are determined to take us down that path as well.