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Momma said wonk you out

THE WEAK AND THE RICH.

Robert Samuelson tends to write bizarre columns -- who can forget his wacky dream of a world in which teenagers spend their time picketing outside the AARP? -- but today's effort is, even by Samuelson standards, an unusual achievement. In it, he attempts to bust some myths about lobbying. He writes:

A second myth is that lobbying favors the wealthy, including corporations, because only they can afford the cost. As a result, government favors the rich and ignores the poor and middle class. Actually, the facts contradict that.

Sure, the wealthy extract privileges from government, but mainly they're its servants. The richest 1 percent of Americans pay 28 percent of federal taxes, says the Congressional Budget Office. About 60 percent of the $3 trillion federal budget goes for payments to individuals -- mostly the poor and middle class. You can argue that those burdens and benefits should be greater, but if the rich were all powerful, their taxes would be much lower. Similarly, the poor and middle class do have powerful advocates. To name three: AARP for retirees; the AFL-CIO for unionized workers; the Center on Budget and Policy Priorities for the poor.

The CBPP, huh? The poor have a powerful lobbying effort comprised of...people who make graphs about the budgetary implications of tax changes? Seriously? At least name ACORN or something. Give us your best effort! As for the rich, it's rather unclear what the absolute value of 28 percent means here. It depends, among other things, on whether the top one percent have a lot of money, or only a little money. But it's not that hard to track changes to the tax code. The following graph tracks the top marginal rates since the 1940s. Unless you think politicians change those rates because they like having less federal revenue to play with, than it would seem that the rich have some sway after all:

toprates.jpg

And here's the share of the national income for the top one percent:

toponepercent.jpg

So over the same period of time that the tax rates on the top one percent have fallen dramatically, their share of the national income has skyrocketed. The rich may not be "all powerful," but it's quite a leap to say that they are somehow cowering before the might of Robert Greenstein and the Center for Budget and Policy Priorities. Indeed, over the same period, they managed to (at least temporarily) eliminate the "estate tax," which was a key tax on the rich. And if you don't believe that was the rich flexing their political power, then you haven't read this.

Meanwhile, the question of elite sensitivity to various types of constituent power is the sort of thing political scientists actually study. Samuelson doesn't seem to have asked any of them for their opinions, but Larry Bartels was kind enough to share his findings with me:

I know of two systematic attempts to measure the relative influence of affluent, middle-class, and poor people on government policy. One is in the next-to-last chapter of Unequal Democracy, where senators' roll call votes are moderately strongly affected by the preferences of high-income constituents, less strongly affected by the preferences of middle-income constituents, and totally unaffected by the preferences of low-income constituents. That's the more optimistic view. My Princeton colleague Marty Gilens (in a 2005 article in Public Opinion Quarterly and a book-in-progress) has a parallel analysis focusing on aggregate poilcy shifts over two decades. He also finds no discernible impact of low-income preferences, but argues that middle-class people also get ignored when they happen to disagree with rich people.
Bartels explains his research in further detail here. Marty Gilens' work is here. I'd be interested to hear Samuelson respond to their findings, or describe which aspects of their analysis he finds insufficiently rigorous.



COMMENTS

PUHLEEZE! Apples for apples analogies only! You can't compare and contrast top marginal tax rates when allowable deductions are so different today than they were years ago when tax rates were higher. Many former deductions during the years of higher marginal rates are no longer available. To compare this differntial in the top tax rates as a meaningful statistic is (at best)misleading.

I doubt the numbers are accurate comparisons. The 28% number is federal income taxes (i.e., excluding FICA (which are capped) and Medicare, which is a flat rate). However, the payments to individuals primarily are funded by FICA and Medicare taxes, while federal income taxes pay for partially, given the Social Security surplus, albeit declining) defense, interest on the debt and everything else (payments to individuals are only a small part). Defense primarily defends the assets of the wealthy and interest on the debt derives from the Reagan, Bush & Bush deficits resulting from the tax cuts to the wealthy.

me too.

I doubt the numbers are accurate comparisons.

The poor have a powerful lobbying effort comprised of...people who make graphs about the budgetary implications of tax changes? Seriously?

Funniest thing I've read in a week. To be fair, they also issue responses to the release of economic data and the implications of that data on possible policy.

Please note: I love the CBPP and rely strongly on what they do for my work.

Actually, IRS data include the amount of revenue collected. I know someone has used a method similar to Piketty and Saez in pulling out a distribution of revenue collected from the richest 1%. If I remember right, it's not qualitatively much different.

I'm with you generally, but it's a little specious to cite Senate votes rather than House votes. I'm not surprised that senators have little incentive to support policies favoring low-income voters, since generally, Senators don't rely on low-income voters to get elected. In the House, however, there are numerous districts in which low-income votes are critical, and thus I would assume that you'd see somewhat more legislative action in favor of low-income voters' priorities in the House.

So the implication Samuelson leaves is that the poor have these three titans of lobbying (for example) and the rich only have... everyone else?

Hmmmmmmmmmm, let me see, will I choose the retiree association who represents, well, well-off/rich retirees; the washed-out union organization that doesn't touch more than, what, 5% of the workers in the country; and a single policy think-tank? Or do I want what's behind door #2; the lobbyists for every major industry and corporation; the lobbyists for every billionaire; and most 'retired' (rich) politicians and their staff with dreams of floating above the Great Unwashed. Seriously?

For this matter, once I discussed with one of my friends, not only about the content you

PUHLEEZE! Apples for apples analogies only! You can't compare and contrast top marginal tax rates when allowable deductions are so different today than they were years ago when tax rates were higher. Many former deductions during the years of higher marginal rates are no longer available. To compare this differntial in the top tax rates as a meaningful statistic is (at best)misleading.

Содержание блога хорошо продуманное, много важного для себя прочитал.

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About Ezra Klein

Ezra Klein is an associate editor at The American Prospect. An archive of his articles for The American Prospect can be found here.

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