Leaked Citigroup Report on Plutonomy

Latin America is even worse than the USA

Dan_in_Cincinnati's picture

At least in the USA we still have a size-able (but shrinking middle class).  In Latin America you have a small middle class and a large number of the desperately poor.  Actually you see the same thing throughout the third world.  Do wealthy Americans really want to see the USA become a third world country?  Henry Ford realized a long time ago that no one could afford to buy his cars if the middle class didn't make a good wage. 

I have a philosophical problem with taxing 90% of anyone's income.  That is confiscatory.  But a minimum of 50% for the top 1 percent of the population?  That sounds about right.  Thom Hartmann, the liberal radio talk show host, says that during the Eisenhower years we had much higher federal income tax rates for the rich.  Like 50% to 90%.  We also had fewer economic bubbles because the rich had less idle money to invest in them.

Not sure I agree with Mr. Hartmann completely but it is interesting to think about.

{;-) Dan in Miami

 

That 90% top rate was a fiction

FearlessFreep's picture

The super-rich knew how to use tax shelters.  But it was a nice principle.

Forget about bringing back 90%, which would be a fiction too.  But a 50-60% top rate is well justified. (And they'll still find shelters, of course.)

 

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