Income Tax Day

Buster is no Pollyanna.  Life is not perfectly fair, but we should not begrudge the wealthy their wealth for that reason alone.  Yet . . . regarding the broad and general concept of "income inequality" (which these days translates to "gross income disparity"), a couple semi-related thoughts on income tax day.

First, a video from Robert Reich, discussing the fact that the very rich (Hello, Mitt!) typically pay income taxes at a much lower net rate than those pulling down "ordinary" incomes.  Familiar but important territory.    


Then, a flash in the old brain pan from Buster his damn self.  Much has been made these days of the extreme difference between top executive pay and rank-and-file wages:  Today's average CEO (just average, mind you) earns 300 to 400 times more than the average worker.  In 1950, the ratio was 20 to 1.  Since the 1950's, that average CEO has experienced a 1000% increase in compensation.

So let's revisit those good old days of Pat Boone, Howdy Doody, and American exceptionalism.  Way back then, before Ronnie reduced federal income tax rates (and eliminated deductions) with the Tax Reform Act of 1986, we actually had a top income tax rate 90%.  That's right, 90-friggin' percent!

Just like today, there were deductions and credits and write-offs out the wazoo, so nobody ever really coughed up 90% of their entire income.  But at some point, for the ultra-rich, some small portion of your  income just might be taxed at 90%.  Under those conditions, what was the point of ever-and-ever-higher executive pay?  Who needed 400 times more money than the average Joe Bagadonuts if the IRS was gonna take back 90% of it anyway?

There was a minimum wage back then, sure.  But the tax policy of the time also operated as a sort of de facto maximum wage limitation.  This with the blessing of our well-known progressive socialist president of that era, Dwight Eisenhower.  All things considered, a more fair and equitable distribution of wealth than today's fuck-your-buddy free-for-all.

I don't like to pay taxes anymore than you do, and I may be way off base, but the conservative no-tax ideology is simple brainless bullshit.  Just sayin'.

And Paul Ryan wants to cut the top rate from 39.6% to 25%.  God bless America.  Gimme a break.