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Stunning Truths about the Bloated Safety Net for the Wealthy


#1

Stunning Truths about the Bloated Safety Net for the Wealthy

Paul Buchheit

The entire 2017 safety net is about $850 billion, compared to over $1.5 trillion for tax expenditures, most of which are for rich Americans.

The Unrelenting Wealth Grab by the 1%


#2

" Lower-income earners are subsidizing the 10% of Americans who stop paying for Social Security when they reach the $127,200 income limit"
Although SS contributions are capped , Mr. Buchheit doesn't mention that SS benefits are also capped.
Someone making $1,000,000 a year will get the same SS benefit that someone making $127,200 a year would get.


#3

So, the...

Greedy Old Pricks

of the Duopoly make a game out of insuring that the less fortunate help subsidize their lives all the while lying about how much the government subsidizes those who need it the most.


#4

The structure is the local profile of "globalization" for the rich and alienation and division goosed by constant media fostering of versions of self-hatred (terrorism) so that you'll kill those suffering similar situations and ... poof... magic, the perps virtually invisible. Neat trick, eh?

Massive arms subsidies to dictatorships and embedding of coup potential (think the "rationalizations" for funding ISIL/DAESH) to create the greasey media slime for keeping conceptual clarity out of reach of the public for the genocides being conducted by the IMF/WB/NATO/et al in the middle east and the ongoing genocide of indigenous peoples all over the world.


#5

Hedge interviews Chomsky-Part 2. He speaks a bit about the above topic.

https://www.rt.com/shows/on-contact/395775-noam-chomsky-neoliberalism-interview/

Peace
Po


#6

Health insurance works the same way, uninsured pay a higher price for the same services. It is a rigged system and the bottom line is, well if you are not in the one percent you lose.


#7

Francis Ford Coppola's 1997 The Rainmaker based on the John Grisham novel is an excellent portrayal of rigged health insurance.

Recall Warren Buffett telling the world in 2006 that "its my class making class warfare, and we are winning", and "my secretary pays a higher income tax rate than I do" ?

During the decade plus since Buffett made those remarks, the income and wealth gap in Murka has continued to widen with no end in sight.


#8

Bucheit continues his statistical cherry picking. For example -

"The super-rich are by far the top beneficiaries of U.S. security, tax laws, and the financial system. But rather than repaying society for these lopsided benefits, households with wealth over $40 million evade 25 to 30 percent of their personal income and wealth taxes." The study he cites is one looking at Norway, Sweden and Denmark, which have radically different tax structures (including taxing income where it is earned, rather than internationally, as the US does).

Or, as another commenter noted, Social Security benefits are limited to $127,500 of compensation as well as the taxes.

Or the notion that an estate pays "little or no tax", although the Estate Tax rate, at 40% is higher than the income tax rate, and only applies to large estates, not small ones.

And the basic notion that "tax expenditures" are a gift from the government, rather than simply allowing people to keep what they've earned...

Yes, there are changes needed in the tax rules, but Bucheit's hyperbole doesn't really help the debate.


#9

"...simply allowing people to keep what they've earned..."

Wow. Now there's a right-wing talking point if I ever heard one. Let us not forget that many of the super-wealthy (Wal Mart heirs are a great example) 'earn' their money by paying poverty wages. State governments wind up subsidizing those wages in the form of Medicaid, food stamps, etc., all paid by taxpayers. It is absurd to think that these people earn their money.

In addition to the low-wage employers, don't forget the bankers and hedge-fund managers. Does Jamie Dimon really earn over $2,000 per minute?! The scams used by the wealthy to build and hide their wealth are numerous, rendering your argument meaningless.


#10

Yep, really feeling bad for that .002% of people who pay the estate tax on anything over $3.5 million.

Because it just hurts that people born lucky can't keep all of what SOMEONE ELSE earned.


#11

"Senator Lindsay Graham once said, 'It's Really American to Avoid Paying Taxes, Legally...It's a Game we play...I see nothing wrong with Playing the Game because we Set it Up to be a Game."

That an Actual Member of our Congress can see a situation like this, and then figuratively Stand Outside of it, expecting no one to point out that the WHOLE REASON he is supposed to be there is to perfect our Nation's laws as best one can, and NOT be a Passive Observer.

That 'Passive Observer' baloney disappears pretty quickly when he's dispatched to Carve Out Another, and
Bigger, Slice of the Pie for his Owners.

"Tell the Truth, tell me who's been fooling who..."
-Derek and the Dominoes

It's time.


#12

Not exactly the whole story of Estate Tax either.


#13

The GOP constantly harps on how the estate tax is double taxation when in reality capital gains basis is shifted from original purchase price to the value at the time of inheritance, so zero tax is owed on the appreciated value of the asset up to that point.

Had I put the commercial property I owned in my parents' names and inherited it when they died, I would have paid no capital gains tax when i sold it, and since it was worth only a small fraction of the $5 million estate tax exemption, I would have paid no estate tax.

There are many other ways to avoid estate taxes such as establishing foundations, putting real estate into joint tenancy and other assets into trusts.

Social Security IS double taxation. The gubmit taxes me on the gross income from which they take the deductions, and they will tax me again on whatever they send me in benefits. The only way I will avoid the double taxation is to die before collecting benefits, or if Eddie Munster's dream comes true to gut Social Security.


#14

I think Lindsay Graham is finally telling the truth - this is a game being played on the American people by the rich and powerful. They think its funny - destroying our country bit by bit for their own personal gain. Sorry - no money for schools - we gamed you. Sorry - massive student debt - we gamed you. Sorry - confusing and expensive health insurance - we gamed you. Sorry - your child is dead in Iraq or Afghanistan - we gamed you. Sorry - you're being evicted -we gamed you. It is way past time to put and end to these games and elect mature, adult leaders who are not there to play games but to seriously put the interest and welfare of all americans first.


#15

Can you say shell game ?


#16

I didn't find it deceptive. I thought it was obvious that what you get out of SS is based on what you originally put in. What Buccheit is reminding us of, however, is that someone who contributes the maximum based on a $million income is getting more than someone who contributes the same amount because they make exactly $127,200.

And let's not forget, that the cap is based on payroll income. In other words, with a SS tax of 6.2%, the relative contributions are:

If payroll income = $30,000, contribution = $1860 = 6.2%
If payroll income = $127,200, contribution = $7886.4 = 6.2%
However, if the payroll income is $127,200, the person likely has dividend and other non-payroll income. If these are another $30k, then the $7886.4 really only amounts to 5%
For someone with a $500k salary, the SS contribution is still $7886.4. But they might be making another $200k from other income, and that contribution is then 1.1%. Yet their INCOME from social security is more, if it is true that they live longer.


#17

No. Social Security has always been a payroll tax, not an income tax. The tax, and the benefit is a reflection of wages only. Their income from Social Security is only greater if they live longer, just like any pension benefit.


#18

That 'ultimate safety net' won't be safe once the GUILLOTINES get started!

Pwr 2 the POOR peons!
GUILLOTINE THE NARCISSISTIC HOARDING DREGS! [Uh, starting with the entire trumpanzee hoarders]


#19

"Senator Lindsey Graham once said, "It's really American to avoid paying taxes, legally...It's a game we play...I see nothing wrong with playing the game because we set it up to be a game."

American "Democracy" is the oligarchy's Wall Street Casino game where those who can't afford to play cover its losses with their taxes.

Direct Democracy


#20

There is no class warfare in America. LOL