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Jonathan Tasini

Jonathan Tasini

Posted: November 1, 2010 02:39 PM

Karl Marx? Nancy Pelosi? Bernie Sanders? Nope--Bill Gates Sr. Not that this is surprising that rich people don't want to pay taxes but it's worth listening to Gates' views on the fight over the attempt to put in place a tax on the richest people in Washington State.

Last night, "60 Minutes" had a segment on taxing the rich, mainly focused on the ballot initiative to be voted on tomorrow that would put in place a five percent income tax on individuals earning more than $200,000 annually or households earning more than $400,000 annually; the state does not have an income tax at the moment.

This was a particularly interesting exchange between correspondent Leslie Stahl and Bill Gates, Sr., father of the you-know-who:

"Businesses are saying they'll leave," Stahl pointed out.

"Yes. But the real truth of the matter is that the people that own businesses are the people who will be paying the tax. And my analysis is they don't want to pay the tax," Gates said. "The rich guys don't want to pay the tax."

"Are you saying you just think they're greedy?" Stahl asked.

"No," he replied. "They're defensive. I guess you could call it greed, I suppose. Wanting to not write another check, sure," Gates said.

"Steve Ballmer?" Stahl asked. "He's worth $14 billion. You don't think he..."

"He's a very fine guy, too. The fact of the matter is there are 43 states in this country that have a state income tax. And in those states, the Microsofts or the ABCs, whatever, have not fled the state. I mean, it's just a gross exaggeration," Gates said.

What was interesting about this exchange is two things. Gates is used to seeing rich people. He hears the unfiltered conversations. And he understand that all the blather about taxes hurting "competitiveness" are just full-out lies.

The rich guys just don't want to pay more. It's greed. And Gates is precisely right: the argument about hurting businesses has always been a "gross exaggeration" if not an outright lie.

Which made the attempts by the "small business CEO" to dress up the greed with a business-competitive argument seem even more ludicrous (I recommend actually watching the video clipof the segment to get a full appreciation of his comments).

The final piece of the segment worth absorbing are the comments of David Stockman--yes, that David Stockman. As the implementing bureaucrat of the trickle-down economics "theory" during his stint as Reagan's OMB director, it was worth hearing this--though there is no admission of guilt about his role in creating the disaster we face:

But, as David Stockman will tell you, that attitude is hard to find. "We've demonized taxes. All right. We've created almost the idea they're a metaphysical evil," he said. [Well, yes, David, who helped do that?--EDITORIAL COMMENT ADDED]

Still, he says there should be a one-time 15 percent surtax on the wealthy that he estimates would cut the national debt in half.

"In 1985, the top five percent of the households, wealthiest five percent, had net worth of $8 trillion, which is a lot. Today, after serial bubble after serial bubble, the top five percent have net worth of $40 trillion," he explained. "The top five percent have gained more wealth than the whole human race had created prior to 1980."


 

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02:58 PM on 11/03/2010
This idea of rich people being hurt by the taxes is laughable to start with which is why 99% of those who oppose these taxes haven't a clue about it...just that Fox News told them that it was bad
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Olderandwiser55
getting older and wiser....
03:07 PM on 11/01/2010
People should especially respond to David Stockman's comments-the tax cuts should be allowed to expire
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satanlite
Liberal blogger
03:04 PM on 11/01/2010
Why is it in the USA if a 15% tax was levied on the wealthiest Americans it would likely result in the "grabbing our guns and fighting big gubmint" faction of our country (iow, poor white working class low information conservative Americans) acting out (iow, raising a ruckus and commiting acts of voilence and disobedience across the country) in a loosely concerted effort to defend the rights of their corporate masters and greedy wealthy to NOT pay the tax (in return for what I've got to ask).

Brainwashing? Lack of education? What makes the poor defend the obscenely wealthy in this country? It will have to come to a point where the poor and the working class will have to rise up as one and demand better pay and fair treatment from the greedy wealthy and obnoxious profiteering of mega corp AT THE POINT OF A GUN in order to fix the income disparity. THAT would make sense. Now, the poor rising up to thereaten public officials with vieled threats in order to defend the rights of the rich to live a life of wanton GREED that permanently lowers the standard of living for their families? That's simply insane.

Are poor conservative Americans just plain stupid?
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Majestry
Every man is the artisan of his own fortune
03:08 PM on 11/01/2010
In answer to your final question... Yes. In fact, they aren't just stupid, they're proud of it!
10:30 AM on 11/07/2010
Yes that is the problem. Where I come from we say if you are not part of the solution, you are part of the problem. We democrats must focus on building an economics educated populace. We democrats were brutally beaten because the public did not have the knowledge to support our policies. This was evident before the election, when our own Congress and president implemented a greatly inadequate and largely invisible job creating stimulus. It was inadequate because he was unsure of the support for a larger one and sought to keep it to the minimum to avoid criticism by the republicans and bluedogs regarding spending restraints.
Our voters recognized this failure to make a dent in our unemployment and not understanding economics sent a resounding message that we must do more to make jobs. We must do this in a way that contributes to long term prosperity. Deficit spending in the short term balanced with more tax on the rich is necessary. We need to get rid of the Bush tax cuts for the rich and institute a larger and graduated capital gains tax.
Before we can do this we need to educate voters on why this is necessary. We did not need a GOTV democrats as much as we needed and need a GOT Knowledge campaign. If we do this, we can blunt this manipulation of our population and our Congress by Corporations while we work to ensure prosperity and security for our citizens. GOTKnowledge.