BDBoop
Platinum Member
- Banned
- #1
PIMCO | Investment Outlook - Scrooge McDucks
I would love for everybody to read this missive word-for-word, and then comment.
Yeah. I know.
But it would be nice.
Still, I would ask the Scrooge McDucks of the world who so vehemently criticize what they consider to be counterproductive, even crippling taxation of the wealthy in the midst of historically high corporate profits and personal income, to consider this: Instead of approaching the tax reform argument from the standpoint of what an enormous percentage of the overall income taxes the top 1% pay, consider how much of the national income youve been privileged to make. In the United States, the share of total pre-tax income accruing to the top 1% has more than doubled from 10% in the 1970s to 20% today. Admit that you, and I and others in the magnificent 1% grew up in a gilded age of credit, where those who borrowed money or charged fees on expanding financial assets had a much better chance of making it to the big tent than those who used their hands for a living. Yes I know many of you money people worked hard as did I, and you survived and prospered where others did not. A fair economic system should always allow for an opportunity to succeed. Congratulations. Smoke that cigar, enjoy that Chateau Lafite 1989. But (mostly you guys) acknowledge your good fortune at having been born in the 40s, 50s or 60s, entering the male-dominated workforce 25 years later, and having had the privilege of riding a credit wave and a credit boom for the past three decades. You did not, as President Obama averred, build that, you did not create that wave. You rode it. And now its time to kick out and share some of your good fortune by paying higher taxes or reforming them to favor economic growth and labor, as opposed to corporate profits and individual gazillions. Youll still be able to attend those charity galas and demonstrate your benevolence and philanthropic character to your admiring public. Youll just have to write a little bit smaller check. Scrooge McDuck would complain but then hes swimming in it, and can afford to duck paddle to a shallower end for a while. If youre in the privileged 1%, you should be paddling right alongside and willing to support higher taxes on carried interest, and certainly capital gains readjusted to existing marginal income tax rates. Stanley Druckenmiller and Warren Buffett have recently advocated similar proposals. The era of taxing capital at lower rates than labor should now end.
I would love for everybody to read this missive word-for-word, and then comment.
Yeah. I know.
But it would be nice.