April 28, 2008

A Man Makes $4 Billion, as Much as All NYC Teachers. Should he be taxed less than them?

Yes, this is a capitalist country whereas people can risk, apply their efforts, and reap huge rewards. Unless, of course, you don't have access to opportunity. Unless, you are already at the top...

But, besides this, if we are all patriots and want to support this country called the United States of America, then the question is: how much everyone should chip into to pot? According to earnings and ability to pay? Is that fair? Whatever you think, this is not how it's done here.

This investor who gambled made $4 billion a year, just as much as all teachers in the NY City public schools made collectively! But, the super-rich have their capital gains taxed at 15% whereas teachers (and other workers) are taxed at twice or more this rate!

Here's an article by Alternet that makes the case. You may disagree with the author's conclusion and suggestions, but the facts remain the facts.

"The United States has the highest inequality rate in the developed world. 28 million Americans -- almost 1 in 10 -- are using food stamps. The average worker has seen virtually no real increase in wages since 1970.

Some hedge fund managers made over a billion dollars last year. Hedge fund manager John Paulson, who made a clever bet against subprime mortgages, made close to $4 billion.
How much is 4 billion dollars? If you work as a sales clerk in a retail store, you'd have to work 200,000 YEARS to make 4 billion dollars.

If you have a steady $50,000 a year job as a laborer and work for 50 years, in all that time you'd make as much as the hedge fund manager gets in one hour at the office."

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