Romney Make a Case Against Trickle Down Economics - and for increasing taxes on Rich Americans whether they are executive wage earners, investors, or business owners.
There was much talk today in the media about Mitt Romney's Tax Filings.
I don't believe Americans are good at analysis in our bipartisan political system. Determined Democrats and Republican can be moved from their views. Many entrenched Americans jump into offensive and defensive positions when they meet a new or different idea.
How long have we been told by Republicans that the rich in the USA create jobs when the tax rates are low. There is little evidence that the rich create job or that we are dependent on rich people for our economy. We know much of our tax history show tremendous growth in the economy during times when taxes were as much as 90% for the top tier.
The Rich in America consider many things in protecting their wealth:
1) Risk: we want low risk if we are rich.
2) Invest as a bond holder or share holder to reduce risk.
3) Invest in the Best kinds of industries, businesses, and look for "Blue Chip" type corporations
4) Opening a Business or starting a corporation is very risky, involves loans, involves putting up capital, and dealing with overhead expenses.
5) Business's goal is to maximize profits and revenues, and reduce overhead such as employees (reduce employees not provide jobs to the public).
6) Automate as much as possible to reduce employee overhead.
7) Use outside resources for accounting, legal, and other so that we don't' have to pay overhead for their taxes, health care, retirement, and other benefits.
The Truth:
If I get rich I will not put my money into a business since I don't have the personality, am risk averse, and I don't have a network of business connections. I haven't made much in dividend income, am in a lower tax bracket, and don't really like paying even the 15% on my dividends over the last 3 years. Many Americans seem to think 24% is a good tax rate for dividend income and for rich people in general as per Gallup polls (NPR Radio 23 Jan 2012).
There is at least another perspective here.
1) Instead of austerity (cutting benefits for those that lost jobs, don't have jobs, and now depend on social programs) we can raise taxes on the rich.
2) Let's encourage people to learn and get involved in financial management like buying stocks and bonds.
3) Let's increase the financial and Banking education of all people.
4) It is an illusion that all people can not learn about banking, finance, and investing in stocks and bonds.
5) It is an illusion that we are dependant on the rich in America. The truth is that certain men think they are better/smarter than the rest of us.
6) Men keep us down by controlling information - so we need to keep the Internet open to all and free for all to preserve liberty, freedom, transparency, democracy, and a fair banking-government system (BGS - Banking Government System).
Conclusion:
I don't believe rich Americans will leave the USA if taxes go up for the following reasons:
A) The best markets or at least very lucrative market for business and consumer goods lie in the USA.
B) Most Americans like to be around other Americans, and like the infrastructure or convenience of living, investing, and doing business in the USA.
C) The culture in other countries is different and most in the USA can not or will not adapt to living overseas outside of the USA.
Mitt Romney, Trickle Down Economics, Republicans, US Tax Policy, US Lobbying, Tax the Rich, Banking Government System, OWS
Showing posts with label Mitt Romney. Show all posts
Showing posts with label Mitt Romney. Show all posts
Tuesday, January 24, 2012
Friday, January 20, 2012
Mitt Romney Positioned as Aristocratic Candidate
Mitt Romney Positioned as Aristocratic Candidate
I don't know how to call this one, do you Bingo?
Obviously Romney is not one of us. I see video where Romney states he pays 15% Income Tax versus the 35% Income Tax that his tax bracket should be paying.
But there is also
1) False Claim of creating 100K jobs. If you went to business school you know the purpose of business is not to create jobs, support jobs, or help anyone else create jobs. The goal of business is to maximize profit.
2) Maximizing profit often means cutting jobs and managing new efficiencies.
3) Yes, there is a business cycle where businesses hire more people, then layoff workers when the economy or industry enters a recession. But let's be clear about what year we are talking about and whether the industry/business was in a recession.
4) Certain businesses take over other corporations to reap the profits whether through closing the business, or through buying a number of inefficient businesses and reaping the profits of turning around high costs or low revenues.
5) It doesn't seem likely that there is a single business model out there to take over businesses and increase employees - since employees are overhead.
6) It seems like Bain capital is more like a consultant business or a venture capital business. the focus could be on marketing, and developing markets, but more likely is going to see high overhead on paper which would lead to cutting jobs and cutting expenses.
The reason I laid that all out is this: There are perverse incentives now at work in US corporations and Businesses. The perverse payoffs are present if you layoff workers (bonus time), cut expenses, commit fraud, turn over fraudulent mortgages by selling them off, or create derivative financial instruments with triple A Ratings with subprime mortgages or subprime bonds packaged inside. Oh and the executive officers of US Businesses get bonuses and salary increases which tend to lessen profit for shareholders. Shareholder profits being drained to pay for overhead like salary and bonuses clearly are perverse.
Mitt Romney, Off Shoring, Off Shore banking, Cayman Islands, Arbitrage, Hedge Fund Manager, Presidential Campaign, US Politicians, US Politics, Political Spin, Propaganda, Perverse Incentives, Bonuses, Executive Compensation
I don't know how to call this one, do you Bingo?
Obviously Romney is not one of us. I see video where Romney states he pays 15% Income Tax versus the 35% Income Tax that his tax bracket should be paying.
But there is also
1) False Claim of creating 100K jobs. If you went to business school you know the purpose of business is not to create jobs, support jobs, or help anyone else create jobs. The goal of business is to maximize profit.
2) Maximizing profit often means cutting jobs and managing new efficiencies.
3) Yes, there is a business cycle where businesses hire more people, then layoff workers when the economy or industry enters a recession. But let's be clear about what year we are talking about and whether the industry/business was in a recession.
4) Certain businesses take over other corporations to reap the profits whether through closing the business, or through buying a number of inefficient businesses and reaping the profits of turning around high costs or low revenues.
5) It doesn't seem likely that there is a single business model out there to take over businesses and increase employees - since employees are overhead.
6) It seems like Bain capital is more like a consultant business or a venture capital business. the focus could be on marketing, and developing markets, but more likely is going to see high overhead on paper which would lead to cutting jobs and cutting expenses.
The reason I laid that all out is this: There are perverse incentives now at work in US corporations and Businesses. The perverse payoffs are present if you layoff workers (bonus time), cut expenses, commit fraud, turn over fraudulent mortgages by selling them off, or create derivative financial instruments with triple A Ratings with subprime mortgages or subprime bonds packaged inside. Oh and the executive officers of US Businesses get bonuses and salary increases which tend to lessen profit for shareholders. Shareholder profits being drained to pay for overhead like salary and bonuses clearly are perverse.
Mitt Romney, Off Shoring, Off Shore banking, Cayman Islands, Arbitrage, Hedge Fund Manager, Presidential Campaign, US Politicians, US Politics, Political Spin, Propaganda, Perverse Incentives, Bonuses, Executive Compensation
Gingrich Disingenuous at best
Gingrich Disingenuous at best
Marianne Gingrich un-burdened herself to ABC about how Newt Gingrich cheated for 6 years as she struggled with illness.
1) Newt tried to control the narrative of course. He said it was very "Low" to attack him a day before a state primary (single State primary of potential 50 primaries).
2) Spin, Spin, Spin. We all know Celebrities, public figures and politicians are fair game for analysis and reporting. They are free targets for paparazzi.
3) No amount of spin or propaganda change the fact that reporters have free rein to report on national elections.
4) We even got a bullet on how Newt Gingrich would control the news if he was president. He indicated on major news networks that he felt news media went too far and had too many rights to report. So much for "Individual Rights", transparency, and freedom.
5) Say good bye America. Newt, Mitt, and Barack will continue wars, spend taxpayer money or transfer taxpayer money to industry while taking away individual rights!
Marianne Gingrich un-burdened herself to ABC about how Newt Gingrich cheated for 6 years as she struggled with illness.
1) Newt tried to control the narrative of course. He said it was very "Low" to attack him a day before a state primary (single State primary of potential 50 primaries).
2) Spin, Spin, Spin. We all know Celebrities, public figures and politicians are fair game for analysis and reporting. They are free targets for paparazzi.
3) No amount of spin or propaganda change the fact that reporters have free rein to report on national elections.
4) We even got a bullet on how Newt Gingrich would control the news if he was president. He indicated on major news networks that he felt news media went too far and had too many rights to report. So much for "Individual Rights", transparency, and freedom.
5) Say good bye America. Newt, Mitt, and Barack will continue wars, spend taxpayer money or transfer taxpayer money to industry while taking away individual rights!
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