Raise My Taxes

Raise my taxes. And raise them now. I have been a vocal supporter of President-elect Obama, knowing full well that he intended to raise my taxes. I am disturbed by the possibility that instead of repealing the Bush tax cuts for the wealthiest Americans at the start of his term, he will wait and let them expire in 2011.

For the past eight years, the wealthy have benefited from both the reduced taxes and failure to regulate that made so many fortunes balloon while bringing disaster to our economy. The poor and the middle class now are disproportionately suffering the effects. The rich now should pay disproportionately for the corrections that are needed.

The United States needs to get as much money flowing through the economic system as possible. This should supersede the fear that raising taxes in a recession will impede spending. The more money available to lower income groups through economic stimulus, hiring and infrastructure projects, the more quickly we can bottom this downturn. Leaving more money in the hands of the wealthy will not get cash flowing through the system. The wealthiest simply do not spend their excess gains at the same rate, and frequently spend them outside the United States.

The added tax revenue from the rich will help the economy more than it will hurt it. An analysis by the Tax Policy Center based on January 2008 income projects that repealing the Bush tax cuts on the rich would generate $43 billion in 2009 and $45 billion in 2010. These numbers will undoubtedly be lower than projected as a result of the economic crisis. But they will still be of sufficient magnitude to give Mr. Obama a greater shot at success in his plans to allay the economic crisis by creating "green jobs," rebuilding our infrastructure, and lowering taxes for lower and middle-income workers.

Let's face it: most of us among the rich can afford to pay more taxes than we do. There are many others who are struggling to make ends meet. The principle that the highest-level wealth will sufficiently trickle down to foster a healthy economy has long been proved wrong. President-elect Obama has impressed me with both his pragmatism and his promise of moral leadership. To cut the rich a break while so many others struggle to support and educate their families is neither moral nor pragmatic.

Barack Obama was elected in part because he renewed the vision of American opportunity after the cynical cronyism of the Bush administration. In the midst of an economic crisis, Americans are aware of who gets bailed out and who doesn't. The economy needs everyone's optimism, initiative, and resolve to get through bad times together. For the past eight years the wealthy have gotten wealthier. Now it's our turn to pay the piper and help build a more moral America.

Comments

[circusfifthfloor]

Don't forget what happened the last time we heard, "Let them eat cake". It's only a natural progression that will usher in another revolution. Count on it......CFF

[tangerinesong]

Mr. Bronfman,

I do agree 110% of the content of this post but with all due respect, your family made its first fortune with Seagram Company LTD. Your family also held majority equity in Du Pont stock in the 80’s when something could have been done to defer the toxic issues of synthetic development and production residue that persists today. Sounds to me this may be an attempt at guilt aversion by having made fortunes in two very destructive companies in my humble opinion. I would say that if you are sincere Mr. Bronfman, I will be reading in the NYT that your family has made a significant donation of your family’s estate to those less fortunate.

Again with all due respect Mr. Bronfman, now where's Phillip Morris.

TS

[LeftRight]

So the fact that his family made money the wrong way means that he cannot understand how to do it the right way???

[Peter007]

Capital will flow where it can get the best return, It is easy in todays world to move millions anywhere in the world. I hope we don't hear that big sucking sound of capital leaving the US for safe haven overseas. Capital is what creates jobs.
Hear what Governor Patterson of New York has to say. He knows wealthy people have left NY because of high taxes. He's not raising taxes now because of it.

[LeftRight]

Capital creates jobs in response to DEMAND, which is created by a lower tax rate on the middle class and a higher tax rate on the upper classes, coupled with reasonable social spending!

[Peter007]

Whatever.
But where does the capital come from to begin the process?

[truesteam]

Bingo! Thank you! It is a myth that raising taxes will send us into a depression. I think history has shown that when taxes have been raised in a reasonable way our country has been able to establish a stable base and slowly and steadily prosper. Personally, I think you recognizing that your role is vital, is a testament to (IMO) your patriotism and leads me to believe you have probably earned your position in life (you are no dummy).

[GrainOSand]

All hands on deck!

There is not a rich America and a poor America; there is the United States of America.

As in no other time, these times are causing many to conclude that -- divided we fall.

If I already own three penthouses, a fleet of luxury automobiles, several skyscrapers, and a few private jets, how could I in all good conscience bark about having to pay what I would not miss?

A movie comes to mind -- Once Upon a Time in America. At one point in the movie, the stars switch around baby bassinets in a maternity ward, as a blackmail scheme. They later forget the numbering scheme they used for the switch and decide that they will leave the children as is. Some children...born to rich parents, were now poor because of the bassinet where they now resided. Others were born to working stiffs, or worse. Now they were the bouncing baby girls and boys of proud well-heeled parents (summertime and the living is easy...your daddy’s rich and your Ma is good looking...). In the movie, the line was. “It is better than fate...some will get the good life and others will get it right up the...” Of course, this line is only true if you measure the good life by the gold standard. The point is wealth is a gift and a responsibility -- give back and take responsibility as one who is blessed! Mr. Bronfman gets that.

[biichama]

As someone who's been living below the federal poverty line for most of her adult life, I only have this to say:

Thank you.

[GrainOSand]

Tell me about your riches beyond money...for I am sure you have many! The box of wealth and poverty does much to diminish real gifts -- though we all have to eat.

Take heart, for these times are changing and I am hoping poverty is slated for decline. I am content and require nothing other than the ability to do more for the suffering, the sick, the struggling, the pained, the weak, the fearful, the hateful, the dying...other than that I cannot need more than I already have. I embrace the concept of joy through acceptance as a way of life. I have no excesses but I lack nothing. I have tasted finery and dirt and in certain instances, it is hard to discern the difference (long discussion). I speak out with palpable memories of the countless number who continue to exist at a level of basic survival (monetarily) in a country that self-promotes greatness. Either we have redefined greatness, or we have work to do. Greatness is not a proclamation of the state of now, but it could be a destination of a future and distant, then and when. If only we would dare to become our natural selves beyond labels that separate, and embrace spirit that unites, and therefore strengthens. Poverty, war, famine, curable disease, would all fall to the terrifying specter of a loving unified world. There is no problem we cannot solve there are only the obstacles of feebleness we find difficulty in transcending.

[bayside]

What they are forgetting. If we dont have jobs, they gave them away, if we dont have houses to tax, they gave them to the crooked banks, if we dont have money to spend on gas, food, then they dont get any money and we all go down even the top 1 per cent ..America has become taking from the poor and giving to the rich..If we arent happy and prosperous no one can get any money from us. Its about time we say stop letting the top 1 per cent ensalve the 99 per cent. They are not special..

[spaceknife]

Great post Mister Bronfman.

Not only is it generous but it is brilliant and at the same time, a way to preserve the ressources of many rich persons, which is the normal citizens struggling to just make it .

These folks work, or would like to work for them so, it is just a return of the elevator.

Maybe this idea can fly among your friends and a movement can arise.

Have good year end's celebration

[prosha]

To the author of the post:

Don't wait for anyone to raise the taxes. You can make a voluntary contribution at any time to the US Treasury. The quicker they get the money, the less interest will have to be paid.

[gisellestwocents]

Thank you. You truly do put country first. It's easy to say, but you prove that you mean it.

[keepacoolhead]

I am on the lower end of the totem pole where I would qualify for the $500 proposed Obama tax cut. As far as I am concerned, not only would I be willing to forego that tax cut, I also would be willing to pay an extra $500 a year (which would be $41.66/month) if that helps our country, I don't mind at all investing in America and investing in GOOD government that has the American People at it's interest.

Everyone is so afraid of paying taxes while private corporations, such as my (now former) health insurance could almost DOUBLE their premiums in one year (they raised it by $87% to be exact and that was without my employer's share) when I hadn't even gone once to a doctor's office. They can raise their rates without a peep but everyone worries about taxes... .

Paying taxes is patriotic, especially now, that we may actually get a pretty decent new decider guy. We are investing in our future.

[FearlessFreep]

"Tax & spend" may not be a popular policy, but it's exactly what the US economy needs.

[canucklivinginUSA]

Although I appreciate your enthusiasm, Monsieur Bronfman, do you seriously think it is wise, while we are in an economic downturn to raise taxes? I have yet heard anyone answer that question to me

[Kram]

Absolutely! Yes, yes , yes! The richest 1% have 41% of the wealth in this country now, while the richest 2% have more wealth than the bottom 50%! This cannot sustain either a healthy economy, or a democratic system of government. What we have now is a Bush/GOP banana republic.

The republican's have used the tax cut scam to fleece the working classes out of 25% of the wealth in this country over the lasrt three decades. It's time they started giving it back, and then some - a whole bunch of then some!

And taxing these megalogazz­illionaire­s will help the economy, not hurt it! The uber rich can afford it. Man can they ever afford it!

[totalliberal]

Considering that the writer of this article is worth a few billion dollars, maybe what he has to say should be listened too. And you are worth how much?

[CharlieMarlowe]

Ironically, Mr. Bronfman, too, is a Canuck living in the USA.

[LeftRight]

Why don't you go do some research and you will find that raising taxes (up to a point) actually HELPS the economy! Don't listen to what raygun told you!

[PATina]

The answer to your question depends on where the money (increased revenues from the higher taxes) goes. If the money is used to create jobs or otherwise put more money into the hands of the consumers... then not only is it wise... but essential into turning this downturn into an economic upswing. However, if on the other hand, the money is used to say pay down our national debt or balance the budget... then it is unwise and will do little if anything to reverse the downturn.

The problem is that we are being 'brainwashed' into believing that what's good for the rich... is ultimately good for the rest of us (that same old trickle down theory rewritten). They use the logic that if the rich and companies who employ people are taxed less... then more jobs will be created and higher salaries will be paid. Not only has the past 20+ years proven that to be false... it also defies common business principles. Businesses don't start or grow because they get tax cuts (nor do they shrink because of tax hikes). Business grow or decline based on demand for their product or service. The more people can afford to purchase a product or service.. the company (and general economy will grow). The less people can afford to purchase... the company (and general economy falters). Therefore... if the government uses the money to give more "discretionary" funds to the consumer... we will see our economy recover and excel.

[Articulator]

Trickle down economics is now an outdated way to run an economy. Now, unlike anytime in history, anyone can easily buy stocks online. Rather than have a very tiny few decide for all others where money gets invested, lets let the wisdom of millions do the economic voting. Rebuild the middle class and let them do the investing. It's a much less corrupt system, each individual middle class person is not going to hire a gaggle of lobbyists to control the government to their liking. Two problems solved at once!

[Badbone]

You want to give more money to the government? Write a check. Me, I pay quite enough, thank you.

[Kram]

You are not in the richest 2%. Don't you republicans ever pay attention?