Maybe this is better off for tomorrow's assignment desk, but why not a progressive capital gains tax? If someone who makes $50K in ordinary income is taxed differently than someone who makes $175K, why do we treat people who have $176.00 in capital gains the same as those with $232K?

Thanks. Here's Wallace's statement from Fox News's transcript: WALLACE: Both candidates pledged this week not to raise taxes on middle class taxpayers, but both have talked about raising the capital gains tax. In fact, Obama has talked about almost doubling it, from 15 percent to 28 percent.

Senator Durbin, when half the tax returns reporting capital gains come from households making less than $50,000, why isn't that a considerable, substantial, middle class tax increase?

http://www.foxnews.com/story/0,2933,351967,00.html

I thought it sounded like faux statistics.

why not a progressive capital gains tax?

Why separate "capital gains" income from other income in the first place?

I'm sure going forward you will use the same standards in discussing tax cuts. Seeing as how only half of American's even pay taxes the constant crying about the benefits going to the rich is old. Either that or have the honesty to complain that individuals who have a negative tax rate are not getting a larger handout from our tax system then they already do.

In regards to the millions of middle class individuals who do pay capital gains I'm sure they will fill much better about their increased tax bill knowing in ultimate dollars the rish are still paying more. Personally when E Trade sends me my tax statements I wouldn't mind the couple hundred less I have knowing some rich guy is out thousands.

Here's some reasons this isn't a significant issue for those earning under $200K/yr:

- 401K retirement programs are not annually taxed AT ALL on capital gains. This applies to both the employee's and employers annual contributions.
- Standard IRA's that are contributed to by employees (within stated limits) are untaxed until the funds are withdrawn, and contributions plus capital gains are taxed as ordinary income at the time of withdrawal (usually after retirement when income is much lower).
- Roth IRA's are completely untaxed at withdrawal (unless early, non-standard withdrawals are taken) since after-tax dollars are contributed to the Roths.

Since US savings is near zero in the aggregate, very few non-wealthy people have investment accounts subject to capital gains that are separate from their 401k, IRA and Roth IRA accounts.

So, this is deliberately misleading as a middle class issue. (these are called LIES in polite society).

Even more rediculous: Exactly why should investment income be taxed at lower rates (capital gains rate) than ordinary, earned-it-through-a-paycheck income? The standard answers is to encourage savings and provide the wonders of compounded earnings to the citizenry. Bullshit! The S&P 500 (the investment benchmark of choice) actually shows negative growth in the years of our fearless brush-cutting, torture-authorizing Preznit.

The best ways to encourage savings is to automatically index the minimum wage to the cost-of living (including energy and food), and to automatically enroll wage earners in 401K or other retirement savings programs.

Nate, it should have been obvious to everyone that taxes were being lowered to an artificially low level in 2003 which could not cover the costs of government. The wise wage earner and investor would have been careful to save and invest those gains wisely, knowing that in the future, those low taxes were unlikely to be available. Those who will complain about changes in this situation are simply naive and were unprepared. Anyone who has a problem with rising capital gains taxes should merely consider themselves grateful that the "good times" of low tax rates lasted as long as they did, rather than acting with petulance that the american people were generous enough the finiance their favored wars with bond sales. The American people were very gracious, and you should thank them for the 5-8 years of easy going you received when it came to taxes.

People who live in Michigan and Canton, Ohio have things to complain about in their economic situation. Few other people have any valid grievances when it comes to the tax proposals of any of the candidates.

"Why separate "capital gains" income from other income in the first place?"

Because regular income requires labor (which only "little people" do), whereas capital gains income requires little effort at all (ideal for aristocrats). The purpose of modern tax reform has been to make sure the "little people" pay their taxes while attempting to create a tax-free aristocracy for the super-rich. Our desire seems to turn the US into an Indian style Caste society by using the tax code. That's fine if you're an American Brahmin like John McCain, but not so good for us "little people."

Echoing what JiminPortlandOR said, even if you're making 100k/yr, how large can your capital gains possibly be, unless you are living off a significant amount of pre-existing wealth?

If you're saving for retirement and college costs, you're likely maxing out your 401(k) and Roth IRA, both of which allow you to accmulate gains tax-free in the accounts. That's 20k/yr you're pouring into those accounts (with the 401(k) portion of 15k/yr before taxes).

Once you factor in housing at 25%-30% of one's income and personal expenses, I find it hard to believe that anything approaching close to the majority of ones savings and investments are going to be in taxable investment accounts or that the taxes on these taxable accounts will represent a significant portion of one's income (after all, capital gains on the sale of stocks only occurs when you sell the stock, and most wise investment strategies do not involve frequent turnover).

Not every investment goes well and Ezra and the other jealous ones don't mention what happens when things go sour. Currently, capital losses are limited to $3,000 a year and any extra must be carried over to the next tax period.

Are you also willing to treat the losses as ordinary since you wish to treat gains that way?

Anonymous 4:27, the capital gains tax rates are already progressive. For long-term gains, some people pay 5% and some pay 15%, depending on their income.

I do wonder how people in the lowest 20% are managing to have any capital gains at all. It's got to be something like 1 in 100 of them having $3900 from stock sales and nothing else, rather than anything resembling $39 for each person.

This sure looks like an easy solution looking for a problem: raise the cap gains rate as Obama proposes, but exempt the first $1,000 or $2,000 (depending on temperment) so nobody even close to the "average middle class" person sees it.

Speaking anecdotally as someone who used to do a lot of tax returns, a lot of retirees will have modest capital gains income, even though their incomes are low.

Disdaniel has a good suggestion. By exempting the first $1000 in capital gains income, you'd wind up giving a tax cut to any lower income taxpayers, and you'd achieve a fairer level of taxation for upper income taxpayers. We already do it with income from the sale of a personal residence (exempt the first $250,000 gain), so there's no reason it couldn't be done with other types of capital gains.

It seems too convenient that Wallace mentions "half the tax returns reporting capital gains come from households making less than $50,000" when the median household income in the US is $48,000. In other words, half of *all* tax returns come from households making less than (approximately) $50,000. By definition.

Though I find it hard to believe that there are as many capital gains claims below the median income as above it. Very hard to believe.

"50% of the people who get taxed make $50,000 or less"

If Martin's quote is accurate, Wallace may have misspoke. Apparently George Will was thumping a similar talking point about how 20% of capital gains claims come from households earning less than $50K. 20% is more plausible, but still not entirely relevant for the reasons Ezra lays out.

Did my daughter's taxes last week. Gross income about $18,000, capital gains about $9. All wiped out by her education credits anyhow. Would have been no different if the rate was 100%

I could have *sworn* the Dem candidates said they were not rolling back the Bush tax cuts on gross incomes under $200-$250, *including capital gains.*

Or was that just Edwards?

If that's *not* true of Hillbama (as Larry Kudlow like to call them/it), then I know a lot of people who will be out mavericking with McBush.

Are you sure?

Seems pretty interesting, looks like Obama's got his work cut out for himself.

While I'm here, I was also looking at the weekly democratic nominee polls, and it's almost amazing how Barack Obama came from a 28% deficit to taking the lead over Hilary Clinton just weeks before the democratic caucus.

What do you think of that?

Tell me more at ObamaChoice.com

I’m curious Tryo what exactly do you know about life’s trials for those living in Canton? I’m asking because I have been there for the last week and didn’t hear anyone complaining. The business I just bought is nestled between Canton and Akron. From actually working there and owning a business there can’t say I identify with your comment. I will add the capital gains I have collected over the past few years made it possible for me to purchase this company. Adding to that further the deal never would have got completed if we couldn’t have structured the deal in such a way that the previous owner was able to cash out with capital gains taxed at a more modest rate. Purchase price will be around 200K so I hardly classify either of us a rich. Now if you had driven up 71 a few miles and said people in Cleveland complained about their economic situation that would be true, but that’s their own fault for electing the idiots they do every couple years.

It was also obvious that taxes have been lowered to far on the 40% of Americans that don’t pay any taxes. It is past time they started contributing. Tax code is meant to raise revenue not redistribute wealth.

Jim,

Do you know what a search engine is? Have you ever considered using one before making stupid comments like;

“very few non-wealthy people have investment accounts subject to capital gains that are separate from their 401k, IRA and Roth IRA accounts.”

http://dreier.house.gov/pdf/IPI%20-%20CapGainsKey.pdf

72% of tax returns under 100K reported capital gains.

It’s old but I know this is how all my grandparents pay their bills;

“A study by the National Center for Policy Analysis examining IRS data from 1986 found that the average elderly tax filer had an income of $31,865, 23 percent of which was capital gains. The average non-elderly filer had an income of $26,199, 9 percent of which was from capital gains.42”

http://www.ncpa.org/pub/st/st307/st307h.html

2005 Internal Revenue Service data indicate that 47 percent of all returns reporting capital gains were from households with incomes below $50,000 [see Figure VIII]. Seventy-nine percent of all returns reporting capital gains were for households with incomes below $100,000 and half had incomes below $50,000.22

PS Tyro I'll be in Toledo all day tomorrow, I'll let you know if they have a right to complain.

Nate, then be grateful you were able to take advantage of the good times of artificially low tax rates while they lasted. Don't complain when things readjust to make up for the era of low taxes you were able to enjoy and you go back to covering the costs of things you refused to pay for. Suck it up and stop whining-- millions of americans are suffering and have plenty more to worry about then the possibility that taxes might go back to where they were in 2001. You should be kissing the feet of the Americans people for allowing you to have a few low-tax years from '03-'09 when it couldn't really afford it. So stop being an ungrateful curr who's spitting on your fellow Americans for their audacity to try to catch up and pay the country's expenses. Your ingratitude at the tax-giveaway you received is astounding.

Also, interesting that payroll taxes aren't considered taxes in your world. Shows how out of touch you seem to be with real life.

By the way, Canton, OH's unemployment rate as of Feb 2008? 12.9%. Nate, unless you're one of those unemployed, you have no right to complain. Life was good, and I hope you socked away money during the years when you paid taxes that were much lower than were warranted at the time. You knew the bill would come due and complaining while people all over the country in economically depressed areas like Canton, Ohio sounds like a bunch of ungrateful whining from spoiled brats.

It shocks me that in a country in which we still have Katrina evacuees living in trailers and the economies of the rust belt imploding even further that people whine that their artificially-low-tax years might come to an end to be only slight-low-tax-years. It reflects nothing but some petulant disdain for the American people in favor of solipsistic self-obsession.

Oh, crap. in the middle of a self-righteous rant, I misread the unemployement rate in canton, which is actually 6.4%.

ABove the national average, but not the end of the world. I really need to read carefully before shooting off like that. sigh

The purpose of modern tax reform has been to make sure the "little people" pay their taxes while attempting to create a tax-free aristocracy for the super-rich.

Well, it ain't working because the rich now pay the lion's share of the taxes. The lower 50% of income earners only pay about 3 or 4% of the bills.

So, Nate, do you think it is better for your grandparents to pay a higher rate on the 77% of their income that isn't cap gains than on the 23% that is or would they be better off rebalancing it by lowering the tax on the 77% and reducing the tax on the 23%?

I certainly bet those 100K a year folks would like to rebalance in favor of their 91% over their 9% subject to cap gains. I know I would.

Nice one, Anon, and I suppose if only 1 person made all the money and paid all the taxes you would cry for that person.

nate - The problem with the NCPA study you cite from 1986, is not just that it's old. It also doesn't appear to be using "median" with regard to capital gains taxes in a meaningful way, beyond showing that elderly filers get a higher proportion of their income from capital gains. The percentages they cite look an awful lot like the percentage of total US tax returns derived from capital gains during that period. That is, the study appears to be taking the median filer's total income in each group (elderly and nonelderly) and multiplying that by the average (mean) capital gains percentage paid by each group overall. So, unless the percentage of capital gains is flat across incomes within each group (i.e. a nonelderly household making 200K made the same percentage of income in the form of cap gains as the nonelderly household making 20K -- something I think we all realize isn't the case) then the "median" numbers don't appear to be medians.

Perhaps the cap gain profile has changed a lot in the 23 years since the NCPA study, or maybe the NCPA is just wrong, but I'm going to assume that the CTJ number Ezra cites are a little more in line with the truth at present.

"72% of tax returns under 100K reported capital gains."

I have capital gains, every year in varying amounts, and I have never filed a tax form over $40K gross income in my entire middle-aged life.

Lots of babyboomers have assets outside their 401K plans on which they will rely in their retirement-- for the simple reason that the old fashioned defined benefit pension plans funded by companies were increasingly phased out during their working years. They knew they would be funding more of it themselves.

Yes, most would contribute to 401K and IRAs *first* but the rest went somewhere else. Not everyone had or has 401K plans-- not every employer offered one and a lot of these SEP and self employed type accounts are more recent inventions.

True, if they made that much money in any given year(s), they weren't "poor" in any given year(s). But, I have to tell you, a lot of older people are also being downsized into not really voluntary early retirements, or got laid off in their 50s and not fully re-employed. That means they're no longer contributing toward their retirements and they are going to be utilizing whatever it is they happen to have.

So, yes, middle income old people will be selling assets and paying capital gains to fund their retirements. Financial advisors actually usually advise them to sell those assets *first* because if there are dividends, they already generate taxes every year.

I think the real bottom line on capital gains is that you're not *losing* that much tax revenue by cutting the middle class a break on their investment income. Rolling back the Bush capital gains tax cut on the uber-wealthy is where the revenue is really at. Rolling it back on middle income people just alienates a lot of voters for a low return in revenue.

Plus, I have to tell you, not many of us really buy that the grand spending plans of the Democrats will actually happen-- 10 to 1 we're stuck paying for the Wall Street banker bailout and the war.
Let the Wall Street bankers and other uber-wealthy profiteers go first.

Then we'll see if there's something imminent on the horizon really worth paying for, is how I look at it. I could come up with a bottom line sort of personal rationale for voting Republican, frankly, though I don't really want to for broader reasons. So.

" Suck it up and stop whining-- millions of americans are suffering and have plenty more to worry about then the possibility that taxes might go back to where they were in 2001."

I don't see why you assume that making those same people pay more taxes actually relieves their burdens. If income has gravitated upward, raise those taxes.

"By the way, Canton, OH's unemployment rate as of Feb 2008? 12.9%. Nate, unless you're one of those unemployed, you have no right to complain."

Employed this year; unemployed next year. Damn straight we'll complain.

Quit lowering the bar, you tool.

I completely agree that the Wallace and Gibson questions reflect a profound level of ignorance, dishonesty, or both. However, the policy argument over whether to increase the capital gains rate has nothing to do with little guys. It has to do with whether it's a good idea to penalize people (mostly rich people) who'd like to liquidate assets for more productive investment.

This is one of the few areas where supply-side arguments still hold water. If you increase the cost of the sale of assets (which is of course what increasing the cap gains tax does) then you increase the likelihood that marginally productive assets will fail to be converted for more productive purposes. Those more productive purposes almost always generate more economic growth than the frozen, moribund assets from which they come. That growth in turn creates new jobs and generates more revenue.

One other thing about cap gains: Currently, you can roll forward gains on the sale of your house, as long as you use all of those gains in the process of buying a new one. Otherwise, you pay cap gains on the sale. (There is a one-time lifetime exclusion, designed to let older people downsize their home once.) Anybody happen to know what percentage of real estate trades wind up trading down? It's probably not very common if you're buying a house in the same market, but it may be quite common if you move out of the area. It'd be interesting to know whether this a problem. Obviously, paying current cap gains rates on a real estate transaction would be a lot easier on individuals than paying at ordinary income rates.

I'm surprised that nobody's talking as much about returning qualified dividends to ordinary income. There's virtually no economic benefit to treating them at a 15% maximum rate and dividend revenue probably has an even steeper skew towards the extremely wealthy than cap gains do.

As far as the capital gains stuff goes, it's all on the IRS web site (http://www.irs.gov/pub/irs-soi/05in14ar.xls) should you choose to look it up. In 2005, 3.72% percent of tax returns for people with adjusted gross income under $50,000 included capital gains on schedule D. (That's excluding people with zero adjusted gross income, 13.76% of whom reported capital gains on schedule D.) 1.70% reported short term capital gains. 4.69% reported long term capital gains.

Maybe I missed something, but it seems that Wallace's question misses an important point. We have a "graduated" income tax rate structure. The higher capital gains rates don't kick in- unless- one's income level is high enough to get them out of the 15% bracket upto the next tax bracket of 25%. Capital gains are taxed at the lesser of the maximum capital gains rate or the taxpayer's marginal tax bracket, whichever is lower. For example, none of the income of a married couple filing jointly and whose total income is less than $50K, will be taxed at a rate higher than 15%. Therefore, these folks would not be impacted by higher capital gain rates above 15% since their maximum marginal rate is only 15%. Now you don't think Chris was trying to cloud the issue do you?

Amazing. The first ever global depression will go down in history horribly misunderstood. What a pathetic bunch of ignorant fools we have become. Consumer junkie credit card morons. Perfect little victims. Say that reminds me.

Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold ALMOST 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, offshore accounts, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST ONE PERCENT HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for any of their ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars which have been transfered FROM US TO THEM. All over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They just keep getting richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductible crumbs and call themselves ‘humanitarians’. Cashing in on the PR and getting even richer the following year. IT CAN’T WORK THIS WAY. Their bogus efforts to make the world a better place can not possibly succeed. Any ‘humanitarian’ progress made in one area will be lost in another. EVERY SINGLE TIME. IT ABSOLUTELY CAN NOT WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. So don’t fall for any of this PR CRAP from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductible contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. Crime, poverty, and suicide will skyrocket. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. IF IT WEREN’T FOR THE OBSCENE, UNREASONABLE, AND UNJUST DISTRIBUTION OF UNITED STATES WEALTH, THERE NEVER WOULD HAVE BEEN SUCH A MARKET FOR SUB-PRIME AND THERE NEVER WOULD HAVE BEEN A COLLAPSE IN THE HOUSING MARKET. Sub-prime did not cause the problem. It only accelerated the outcome. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah Winfrey, Ellen DeGeneres, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. In fact, they specifically endorsed Countrywide by name. The same Countrywide widely responsible for predatory adjustable rate sub-prime lending and the accelerated collapse of the housing market. ENDORSED BY OPRAH WINFREY, ELLEN DEGENERES, AND DR PHIL. Now, there are commercial ties between nearly every industry and every public figure. IT MAKES THEM RICHER. It also drives up the cost for nearly every product and service on the market. So don’t fall for their ‘good will’ BS. ITS A LIE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, or executive, then you’re a fool. No offense fellow citizens. But we have been mislead by nearly every public figure. We still are. Even now, they claim to be ‘hurting’ right along with the rest of us. As if gas prices actually effect the lifestyle of a millionaire. ITS A LIE. IN 2007, THE RICHEST 1% INCREASED THEIR AVERAGE BOTTOM LINE WEALTH AGAIN. On average, they are now worth over $4,000,000 each. Thats an all time high. As a group, they are now worth well over $17,000,000,000,000. THATS WELL OVER SEVENTEEN TRILLION DOLLARS. Another all time high. Which by the way, is much more than the entire middle and lower classes combined. Also more than enough to pay off our national debt, fund the Iraq war for a decade, repair our infrastructure, and bail out the US housing market. Still think that our biggest problem is China? Think again. Its the 1% club. That means every big name celebrity, athlete, executive, entrepreneur, developer, banker, and lottery winner. Along with many attorneys, doctors, and politicians. If they are rich, then they are part of the problem. Their incredible wealth was not ‘created’, ‘generated’, grown in their back yard, or printed up on their command. It was transfered FROM US TO THEM. Directly and indirectly. Its become near impossible to spend a dollar without making some greedy pig even richer. Don’t be fooled by the occasional loss of a millionaire’s fortune. Overall, they just keep getting richer. They absolutely will not stop. Still, they have the nerve to pretend as if they care about ordinary people. ITS A LIE. NOTHING BUT CALCULATED PR CRAP. WAKE UP PEOPLE. THEIR GOAL IS TO WIN THE GAME. The 1% club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Reaganomics. Their idea. Loans from China. Their idea. NAFTA. Their idea. Outsourcing. Their idea. Sub-prime. Their idea. High energy prices. Their idea. Oil ‘futures’. Their idea. Obscene health care charges. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. The multi-million dollar endorsement deal. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. Subliminal advertising. Their idea. Brainwash plots on TV. Their idea. Vioxx, and Celebrex. Their idea. Excessive medical testing. Their idea. The MASSIVE campaign to turn every American into a brainwashed, credit card, pharmaceutical, medical testing, love-sick, celebrity junkie. Their idea. All of the above drive up the cost of living, shrink the middle class, concentrate the world’s wealth and resources, create a dominoe effect of socio-economic problems, and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, executives, entrepreneurs, attorneys, and politicians. IT MAKES THEM RICHER. So don’t fall for any of their ‘good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTIBLE PR CRAP. In many cases, the ‘charitable’ contribution is almost entirely offset. Not to mention the opportunity to plug their name, image, product, and ‘good will’ all at once. Which is usually done just before or after the release of their latest commercial project. IT MAKES THEM RICHER. These filthy pigs even have the nerve to throw a fit and spin up a misleading defense with regard to ‘federal tax revenue’. ITS A SHAM. THEY SCREWED UP THE EQUATION TO BEGIN WITH. If the middle and lower classes had a greater share of the pie, they could easily cover a greater share of the federal tax revenue. They are held down in many ways because of greed. Wages remain stagnant for millions because the executives, celebrities, athletes, attorneys, and entrepreneurs, are paid millions. They over-sell, over-charge, under-pay, outsource, cut jobs, and benefits to increase their bottom line. As their profits rise, so do the stock values. Which are owned primarily by the richest 5%. As more United States wealth rises to the top, the middle and lower classes inevitably suffer. This reduces the potential tax reveue drawn from those brackets. At the same time, it wreaks havok on middle and lower class communities and increases the need for financial aid. Not to mention the spike in crime because of it. There is a dominoe effect to consider. IT CAN’T WORK THIS WAY. But our leaders refuse to acknowledge this. Instead they come up with one trick after another to milk the system and screw the majority. These decisions are heavily influensed by the 1% club. Every year, billions of federal tax dollars are diverted behind the scenes back to the rich and their respective industries. Loans from China have been necessary to compensate in part, for the red ink and multi-trillion dollar transfer of wealth to the rich. At the same time, the feds have been pushing more financial burden onto the states who push them lower onto the cities. Again, the hardship is felt more by the majority and less by the 1% club. The rich prefer to live in exclusive areas or upper class communities. They get the best of everything. Reliable city services, new schools, freshly paved roads, upscale parks, ect. The middle and lower class communities get little or nothing without a local tax increase. Which, they usually can’t afford. So the red ink flows followed by service cuts and lay-offs. All because of the OBSCENE distribution of bottom line wealth in this country. Anyway, when you account for all federal, state, and local taxes, the middle class actually pay about the same rate as the rich. The devil is in the details. So when people forgive the rich for their incredible greed and then praise them for paying a greater share of the FEDERAL income taxes, its like nails on a chalk board. I can not accept any theory that our economy would suffer in any way with a more reasonable distribution of wealth. Afterall, it was more reasonable 30 years ago. Before Reaganomics came along. Before GREED became such an epidemic. Before we had an army of over-paid executives, bankers, celebrities, athletes, attorneys, doctors, investors, entrepreneurs, developers, and sold-out politicians to kiss their asses. As a nation, we were in much better shape. Strong middle class, free and clear assets, lower crime rate, more widespread prosperity, stable job market, lower deficit, ect. Our economy as a whole was much more stable and prosperous for the majority. WITHOUT LOANS FROM CHINA. Now, we have a more obscene distribution of bottom line wealth than ever before. We have a sold-out government, crumbling infrastructure, energy crisis, home forclosure epidemic, credit crunch, weak US dollar, 13 figure national deficit, and 12 figure annual shortfall. The cost of living is higher than ever before. Most people can’t even afford basic health care. ALL BECAUSE OF GREED. I really don’t blame the 2nd -5th percentiles in general. No economy could ever function without some reasonable scale of personal wealth and income. But it can’t be allowed to run wild like a mad dog. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. UNBRIDLED CAPITALISM ABSOLUTELY CAN NOT WORK. TOP HEAVY ECONOMIES ALWAYS COLLAPSE. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. The American dream will be shattered. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. THERE IS NO SUCH THING AS A MULTI-MILLIONAIRE HUMANITARIAN. EXTREME WEALTH MAKES WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman. Of course, they will jump to small minded conclusions about ‘jealousy’, ‘envy’, or ’socialism’. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.

So what can we do about it? Well, not much. Unfortunately, we are stuck on a runaway train. The problem has gone unchecked for too many years. The US/global depression is comming thanks to the 1% club. It would take a massive effort by the vast majority to prevent it. Along with a voluntary sacrifice by the rich. THATS NOT GOING TO HAPPEN. But if you believe in miracles, then spend your money as wisely as possible. Especially in middle and lower class communities. Check the Fortune 500 list and limit your support of high profit/low labor industries (Hollywood, pro sports, energy, credit, pharmaceutical, cable, satelite, internet advertising, cell phone, high fashion, jewelry, ect.). Cancel all but one credit card for emergencies only. If you need a cell phone, then do your homework and find the best deal on a local pre-pay. If you want home internet access, then use the least expensive provider, and share accounts whenever possible. If you need to search, then use the less popular search engines. They usually produce the same results anyway. Don’t click on any internet ad. If you need the product or service, then look up the phone number or address and contact that business directly. Don’t pay to see any blockbuster movie. Instead, wait a few months and rent the DVD from a local store or buy it USED. If you want to see a big name game or event, then watch it in a local bar, club, or at home on network TV. Don’t buy any high end official merchendise and don’t support the high end sponsors. If its endorsed by a big name celebrity, then don’t buy it. If you can afford a new car, then make an exception for GM, Ford, and Dodge. If they don’t increase their market share soon, then a lot more people are going to get screwed out of their pensions and/or benefits. Of course, you must know by now to avoid those big trucks and SUVs unless you truly need one for its intended purpose. Don’t be ashamed to buy a foreign car if you prefer it. Afterall, those with the most fuel efficient vehicles consume a lot less foreign oil. Which accounts for a pretty big chunk of our trade deficit. Anyway, the global economy is worth supporting to some extent. Its the obscene profit margins, trade deficits, and BS from OPEC that get us into trouble. Otherwise, the global economy would be a good thing for everyone. Just keep in mind that the big 3 are struggling and they do produce a few smaller reliable cars. Don’t frequent any high end department store or any business in a newly developed upper class community. By doing so, you make developers richer and draw support away from industrial areas and away from the middle class communities. Instead, support the local retailer and the less popular shopping centers. Especially in lower or middle class communities. If you can afford to buy a home, then do so. But go smaller and less expensive. Don’t get yourself in too deep and don’t buy into the newly developed condos or gated communities. Instead, find a modest home in a building or neighborhood at least 20 years old. If you live in one of the poorer states, then try to support its economy first and foremost. Be on the lookout for commercial brainwash plots on TV. They are written into nearly every scene of nearly every show. Most cater to network sponsors and parent companies. Especially commercial health care. Big business is fine on occasion depending on the profit margins and profit sharing. Do your homework. If you want to support any legitimate charity, then do so directly. Never support any celebrity foundation. They spend most of their funding on PR campaigns, travel, and high end accomodations for themselves. Instead, go to Charitywatch.org and look up a top rated charity to support your favorite cause. In general, support the little guy as much as possible and the big guy as little as possible. Do your part to reverse the transfer of wealth away from the rich and back to the middle and lower classes. Unfortunately, there is no perfect answer. Jobs will be lost either way. Innocent children will starve and die either way. But we need to support the largest group of workers with the most reasonable profit margins. We also need to support LEGITIMATE charities (Check that list at Charitywatch.org). This is our only chance to limit the severity and/or duration of the comming US/global depression. In the meantime, don’t listen to Bernanke, Paulson, Bartiromo, Orman, Dobbs, Kramer, OReiley, or any other public figure with regard to the economy. They are all plenty smart but I swear to you that they will lie right through their rotten teeth. IT MAKES THEM RICHER. These people work for big business. The ‘experts’ they cite also work for big business. They are all motivated by their desire to accumulate more wealth. THEY WILL LIE RIGHT THROUGH THEIR ROTTEN TEETH. So don’t fall for their tricks. Instead, look at the big picture. The economic problems we face have been mounting for well over 20 years. All of them caused or aggrivated by a constant transfer of wealth from poorer to richer. Soon, it will cause the first ever GLOBAL DEPRESION. Its not brain surgery. Its simple math. Like I said, you are welcome to run this by any professor of economics or socio-economics. If thats not good enough, then look up what Einstein had to say about greed, extreme wealth, and its horrible concequences. I speak the truth. GREED KILLS. IT WILL BE OUR DOWNFALL.

Its already underway. A massive campaign to divert our attention. Trump, Buffet, OReiley, Dobbs, Pickens, Norris, and several other well known filthy rich public figures have been running their mouths about the economy. Finally admitting a hint of severity after almost 2 years of denial. They even have the nerve to acknowledge the possibility of a US/global depression. Still, they refuse to acknowledge the single greatest underlying cause. Remember: Our national debt was way up BEFORE sub-prime. Consumer debt was way up BEFORE sub-prime. The cost of living was up BEFORE sub-prime. Wall Street profits were obscene BEFORE sub-prime. The middle class were loosing free and clear assets BEFORE sub-prime. Our infrastructure was in bad shape BEFORE sub-prime. Loans from China were taken out BEFORE sub-prime. The dollar was loosing value BEFORE sub-prime. So don’t let these cowardly filthy rich public figures divert your attention or limit your range of thought. THE CURRENT ECONOMIC CRISIS WAS NOT CAUSED BY A SINGLE POLICY OR PROCEDURE. IT WAS CAUSED PRIMARILY BY A MASSIVE TRANSFER OF WEALTH FROM POOR TO RICH. OTHERWISE, THERE WOULD NOT HAVE BEEN SUCH A MARKET FOR SUB-PRIME AND THERE WOULD NOT HAVE BEEN A GLOBAL CREDIT CRUNCH. MONEY DOES NOT GROW ON TREES AND IT DOES NOT FLOAT AWAY. IT ONLY TRANSFERS FROM ONE PARTY TO ANOTHER. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. GREED KILLS. IT WILL BE OUR DOWNFALL.

A word for those who respond with the usual ‘I know more than you. Look how smart, knowledgable, and articulate I am’ crap. Let me say this in advance. I don’t claim to be an expert in this field. But I did go on record with these predictions long before any public figure uttered the word ‘recession’. If you search long enough, you will find my early postings from ‘05′ and ‘06′. Including the first draft of this rant. Since then, I’ve gone on record against people like Greenspan, Bernanke, and Paulson. So far, my predictions have been accurate. Like I said. This is not brain surgery. For the mostpart, its simple math. When you concentrate the world’s wealth, you also concentrate its capital and shrink the middle class along with the potential market for every major industry. Homes go unsold. Bills go unpaid. Banks fail. More products go unsold. Jobs are lost. More banks fail. and so on. and so on. It happened 80 years ago. It will happen again. This time on a global scale. Throughout the cycle, the rich will tighten their grip. Concentrating the world’s wealth and resources even further and ensuring the collapse of every major economy worldwide. Think it can’t happen? Think again. GREED KILLS. IT WILL BE OUR DOWNFALL.

Another thing. I don’t want credit for any of this. Otherwise, I would have given my full name a long time ago. As far as I’m concerned, you can put this rant in your own words and take credit for all of it. I don’t care. Just spread the word. Otherwise, the greatest injustice of all time will go down in history unchecked.

By the way. The bailout won’t work. IT WON’T WORK. The plan fails to address the fundamental problem. The middle class don’t need more credit. They need a reasonable share of the economic pie. They also need a lower cost of living and a chance to catch their breath. Most of all, they need to wake up and see the truth. GREED KILLS. IT WILL BE OUR DOWNFALL.