Friday 30th of July 2021

trickle down or suck the middle?...

trickle down

Famous excerpt (probably made up) from a conversation between Colbert and Mazarin under LOUIS XIV:

Colbert: To find money, there comes a time when fiddling is not enough anymore. I would like the Superintendent to explain how we go about spending even when we are already in debt ...

Mazarin: When one is a mere mortal, of course, and one is covered with debts, one goes to prison. But the State ... The State is different. You can not throw the state into jail. Then the state continues, adds to the debt! All states do that.

Colbert: Oh yes? You think that works?

However, we need money. And how to find it when we have already invented all the taxes imaginable?

Mazarin: We create more.

Colbert: We can not tax the poor more than they already are.

Mazarin: Yes, it is impossible.

Colbert: So, we tax the rich?

Mazarin: Tax the rich? Don't be ridiculous. They would not spend anymore. A wealthy man who spends makes hundreds of poor people survive on the bread-line. It trickles down...

Colbert: So, how do we do it?

Mazarin: Mate, you reason like a lost smelly cheese (or like a chamber pot under the back of a sick person)! There are a lot of people who are in between, neither poor nor rich ... Frenchmen who work, dreaming of being rich and dreading being poor! These are the ones we must tax, even more, more and more! These people? The more you take from them, the harder they work to compensate ...

It is an inexhaustible reservoir.

champagne does not trickle down well. piss does...

Trickledown economics is sometimes summarised in the expression: "A rising tide lifts all boats" — an attractive but quite false piece of economic chicanery. The theory is that the businesses will use this government largesse – this handout of tax which we pay in good faith – to hire more staff or give a salary increase to their workers, but there is scant evidence that this actually happens.

How the goods of society, the wealth of the community, are distributed ought to be a moral rather than an economic question, which is why we are discussing it in this class. Despite the huge growth in productivity and wealth over the last two decades, due mainly to improved technology, the living standards of many workers have declined. You have a comment, Jones? Yes, you are correct — inflation is now higher than the average wage increases in the economy, so that workers are going backwards. And those are official figures.

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repeat business...


In a nation awash in opioids, there are few, if any, places where this kind of scene plays out more often than this artsy beach town of 15 square miles. Here, heroin overdoses long ago elbowed out car crashes and routine health issues as the most common medical emergencies. Last year, Delray paramedics responded to 748 overdose calls; 65 ended in fatalities. In all, Palm Beach County dealt with 5,000 overdose calls.

Unlike other places in the United States that have been clobbered by the opioid crisis, most of the young people who overdose in Delray Beach are not from here. They are visitors, mostly from the Northeast and Midwest, and they come for opioid addiction treatment and recovery help to a town that has long been hailed as a lifeline for substance abusers. But what many of these addicts find here today is a crippled and dangerous system, fueled in the past three years by insurance fraud, abuse, minimal oversight and lax laws. The result in Palm Beach County has been the rapid proliferation of troubled treatment centers, labs and group homes where unknowing addicts, exploited for insurance money, fall deeper into addiction.

“We have these people sending us their children to get healthy,” said Dave Aronberg, the state attorney for Palm Beach County, who established a sober homes task force to combat the problem, “and they are leaving in ambulances and body bags.”

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In the same fashion than the fat food and the slimming industries work hand in hand, the drug supply and the rehabilitation industries work complementarily to each other. Repeat business sustains profits and charitable donations.

Unfortunately, when the customers leave in body bags, the cycle is broken but not for long.


Read from top...

ten rich bottles...

Last year it was eight men, then down to to six, now almost five...

While Americans fixate on Trump, the super-rich are absconding with our wealth, and the plague of inequality continues to grow. An analysis of 2016 data found that the poorest five deciles of the world population own about $410 billion in total wealth. As of June 8, 2017, the world’s richest five men owned over $400 billion in wealth. Thus, on average, each man owns nearly as much as 750 million people.

Why do we let a few people shift great portions of the world’s wealth to themselves?

Most of the super-super-rich are Americans. We the American people created the internet, developed and funded artificial intelligence, and built a massive transportation infrastructure, yet we let just a few individuals take almost all the credit, along with hundreds of billions of dollars.

Defenders of the out-of-control wealth gap insist that all is OK, because after all, America is a meritocracy in which the super-wealthy have earned all they have. They heed the words of Warren Buffett: “The genius of the American economy, our emphasis on a meritocracy and a market system and a rule of law has enabled generation after generation to live better than their parents did.”

But it’s not a meritocracy. Children are no longer living better than their parents did. In the eight years since the recession the Wilshire Total Market valuation has more than tripled, rising from a little over $8 trillion to nearly $25 trillion. The great majority of it has gone to the very richest Americans. In 2016 alone, the richest 1% effectively shifted nearly $4 trillion in wealth away from the rest of the nation to themselves, with nearly half of the wealth transfer ($1.94 trillion) coming from the nation’s poorest 90% — the middle and lower classes. That’s over $17,000 in housing and savings per lower-to-middle-class household lost to the super-rich.

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the myth of tax cuts to businesses...

If claims about the job-creation benefits of lower tax rates had any validity, these 92 consistently profitable firms would be among the nation’s strongest job creators. Instead, we found just the opposite.

The companies we reviewed had a median job-growth rate over the past nine years of nearly negative 1 percent, compared with 6 percent for the private sector as a whole. Of those 92 companies, 48 got rid of a combined total of 483,000 jobs.

At the companies that cut jobs, chief executives’ pay last year averaged nearly $15 million, compared with the $13 million average for S&P 500 companies.

Instead of tax-rate cuts for these big corporations, the coming tax debate in Congress should focus on making wealthy individuals and big corporations pay their fair share.

American multinationals hold $2.6 trillion in profits “offshore,” on which they would owe $750 billion in federal taxes if the money was repatriated. In most cases, these foreign profit stashes are merely an accounting fiction. Companies retain full access to these funds for use in the United States and could, if their executives so chose, use them to create jobs here.

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see image at top...

lies, lies, lies, lies,lies, lies, lies, lies, lies, lies....

Modern conservatives have been lying about taxes pretty much from the beginning of their movement. Made-up sob stories about family farms broken up to pay inheritance taxes, magical claims about self-financing tax cuts, and so on go all the way back to the 1970s. But the selling of tax cuts under Trump has taken things to a whole new level, both in terms of the brazenness of the lies and their sheer number. Both the depth and the breadth of the dishonesty make it hard even for those of us who do this for a living to keep track.

In fact, when I set out to make a list of the bigger lies, I thought there would be six or seven, and was surprised to come up with ten.

So I thought it might be useful, both for myself and for others, to put together a crib sheet: a fairly long-form description of ten big lies Trump and allies are telling, what they’ve said, and how we know that they are lies. I’m probably missing some stuff, and for all I know some new big lie will have been tweeted out by the time this is posted. But we do what we can. So here we go.

Lie #1: America is the most highly-taxed country in the world

This is a Trump special: he’s said it many, many times, most recently just this past week. Each time, fact-checkers have piled on to point out that it’s false. Here’s taxes as a percentage of GDP, from the OECD:

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Mind you the liberals (US liberals) have been fudging the books as well... Meanwhile in Australia, the Liberals (ultra-CONservatives) follow the lies, lies, lies, lies,lies, lies, lies, lies, lies, lies of tax cuts mantra.

tax cuts for the tuxedos on 1.5 trillion credit...


After years of railing against deficit spending, House Republicans voted on Thursday for a budget resolution that allows for $1.5 trillion of deficit spending to finance tax cuts. Nearly 80 percent of the cuts would go to the wealthiest 1 percent of Americans, according to an initial estimate from the nonpartisan Tax Policy Center.

Every Democrat and 20 Republicans voted against the budget resolution, which passed 216-212. The resolution allows Congress to fast-track tax cuts using a process known as reconciliation—meaning the Senate will only need a simple majority, instead of the 60 votes needed to overcome a filibuster.

Most of the Republican opposition came from the GOP’s plan to eliminate deductions for state and local taxes, with 11 Republicans from New York and New Jersey voting against the bill. Eliminating the deduction, which disproportionately affects well-off families in high-tax states, is the main reason why Trump’s plan would raise taxes on one in six Americans, according to the left-leaning Institute on Taxation and Economic Policy. In Maryland, nearly one in three households would see their taxes go up as the state’s top 1 percent gets a $74,470 annual windfall.

Republicans in Congress may soften the blow by providing a tax credit for property taxes, the Wall Street Journal reported on Wednesday. That change could make the tax bill more politically palatable for blue-state Republicans, but it would make the tax cuts far more expensive. Without that change, the Tax Policy Center estimates that Trump’s plan would already increase the deficit by$2.4 trillion over ten years—$900 billion more than the self-imposed limit in the budget Congress passed Thursday. If the GOP replaces the state and local tax deduction with a property tax credit, that deficit spending would balloon by up to another $700 billion.

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Same capers with Team Trumble in Aussieland (on a similar proportional scale)... while adding some artificial sweetener to the process in order to make the old people happy in nappies...


The Federal Government's full company tax plan will cost the budget more than $15 billion per year once fully implemented.

Key points:
  • Treasury secretary had said cost would be $48.2 billion over the 2016-27 period
  • Opposition asks how $65 billion "corporate tax give-away" would be funded
  • Prime Minister accused Labor of desperately misrepresenting his statements about plan

The revised figures were outlined by Treasurer Scott Morrison during Question Time, prompting Labor MPs to accuse the Government of a multi-billion-dollar blowout.

In May last year, Treasury secretary John Fraser told a Senate hearing the cost of cutting taxes for all businesses to 25 per cent would cost $48.2 billion over the 2016-27 period.

But Mr Morrison has revised that figure to $65.4 billion for the decade starting a year later, on July 1, 2017 (2017-28).

The increase takes into account forecast economic growth and increasing company tax profits, which would be paid if the tax cut is not passed for all businesses.

The Government has already passed the first tranche of the tax cuts for businesses with an annual turnover of up to $50 million, in exchange for energy reviews and one-off payments for pensioners.

It has committed to passing the tax cuts for all businesses at a later stage.

read more:$15b-per-year-morrison-reveals/8518642


Since then more tax cuts for the rich are being voted upon... Read from top and take your pills...



Meanwhile at concentrating wealth central CWC), take this in your face, you the egalitarians:



The world’s super-rich hold the greatest concentration of wealth since the US Gilded Age at the turn of the 20th century, when families like the Carnegies, Rockefellers and Vanderbilts controlled vast fortunes. 

Billionaires increased their combined global wealth by almost a fifth last year to a record $6tn (£4.5tn) – more than twice the GDP of the UK. There are now 1,542 dollar billionaires across the world, after 145 multi-millionaires saw their wealth tick over into nine-zero fortunes last year, according to the UBS / PwC Billionaires report.

Josef Stadler, the lead author of the report and UBS’s head of global ultra high net worth, said his billionaire clients were concerned that growing inequality between rich and poor could lead to a “strike back”.

“We’re at an inflection point,” Stadler said. “Wealth concentration is as high as in 1905, this is something billionaires are concerned about. The problem is the power of interest on interest – that makes big money bigger and, the question is to what extent is that sustainable and at what point will society intervene and strike back?”

Stadler added: “We are now two years into the peak of the second Gilded Age.”

He said the “$1bn question” was how society would react to the concentration of so much money in the hands of so few.

Anger at so-called robber barron families who built up vast fortunes from monopolies in US rail, oil, steel and banking in the late 19th century, an era of rapid industrialisation and growing inequality in America that became known as the Gilded Age, led to President Roosevelt breaking up companies and trusts and increasing taxes on the wealthy in the early 1900s.

“Will there be similarities in the way society reacts to this gilded age?,” Stadler asked. “Will the second age end or will it proceed?”

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see also: 

the rockefellers — those lefties who made one of the world's largest fortunes in the oil business...



it works for some...