[quote=AN]flyer, I understand your concern regarding wealth gap with regards to societal viewpoint. However, I think we’re far from the breaking point, where it would start to result in revolution. I think as long as the middle 3 quintile are employed and have a decent life, things will continue to chug along.
With that said, what would be your proposal to close the gap (meaningfully)? The only solution that I think would work is a wealth tax. I don’t think raising the minimum wage will do it, since it will just put more money into the system and the rich will also benefit from additional money in the system as well. It might end up negatively affect the 2nd & 3rd quintile more than the top 5% and the 4th quintile.[/quote]
1.) Restrict the ratio of highest-paid to lowest-paid people who work for or own a particular corporation (including ALL types of compensation to any individual). If they want the benefits of incorporation (basically spreading the risks), then they should have to pay for those benefits by spreading the rewards, as well.
2.) Tax ALL income at the same, steeply progressive rates.
3.) Eliminate the ability to step-up the cost basis of assets for heirs of large estates. Adjust the cost basis by some sort of inflation factor instead in order to avoid being taxed on “inflation.”
4.) Universal healthcare for all U.S. citizens. Medical costs are one of the leading causes of bankruptcy. Unfortunately, if someone is stricken with a devastating illness, they are often unable to work (and maintain affordable insurance) at the very same time that they need this insurance. We pay the highest medical costs for some of the worst outcomes, respectively. Americans desperately need to wake up and learn more about the different healthcare systems and their outcomes.
5.) Lift the cap on income subject to SS taxes, increase SS contributions from both employees and employers, and increase the benefits with the possibility of adjusting the benefits based on needs.
6.) Consider imposing tariffs on “U.S. companies” (and foreign companies?) that do most of the manufacturing overseas if they want to sell goods in the U.S. These costs should offset any differences in labor and environmental standards between the two countries.
If the company isn’t paying for all of the legal, physical, social, and other infrastructure provided by our government (because they are doing most of their work overseas), they should have to buy the right to be a U.S. company with all of the protections and benefits that this affords them.
Just these steps alone would greatly reduce the income and wealth gaps, while still allowing people the ability to save for retirement and enjoy a decent quality of life.
