I'll take a crack at a possible solution. Overall, I think the problem of social inequality is primarily caused by a lack of opportunity. Our economy does not encourage or reward innovation or entrepreneurship at the lower level, nor is there a lot of opportunity to move up a corporate ladder anymore. To start your own business requires a period of immense risk now. For example, a person with a good idea for a business, removing a person's education out of the equation (a good idea is a good idea), needs to come up with a gigantic amount of capital to get their idea off the ground. That capital can come in the form of working full time at a low entry job just to pay your bills, Perhaps you scrounge a little savings together. Or it can come in the form of hustling for investors, and jumping through the required hoops of reasonable loans hoping you qualify. Or it can be a combo of all three at the same time. This used to be a much more achievable task, like climbing a proverbial mountain. It's the American dream. Obviously, only those who persevere will make it to the top. It's the same if a person pursues a career or a trade. A person trudges through entry level positions always looking for the next rung up the ladder within their given career. This too used to be a much more achievable task, and the investment in an education and degree would open more opportunities, so it was the advantage families sought to insure their child's success. Even if a person didn't pursue a degree and instead pursued a trade or craft, they still had the opportunity to work their ass off and make a life for themselves. This used to be the harder road to hoe (jobs with hard labor and long hours and dangerous working conditions), but not so much anymore, IMO. <-- a thought for another thread, perhaps...
However, the income inequality in our country has made this mountain much steeper with some parts being a virtual cliff with mines for footholds. An entry level job doesn't pay the bills for even the most frugal worker. To make ends meet they need either another job (or a working spouse) or they fall into debt. Debt can come in the form of the checks-for-cash store, credit cards in the mail, or through a poor investment in their own health (we're still in the middle of working this part out). Everyone has a different measure for what they feel is that step where they've made it past that risk, a profitable business, a condo, or property (which has become another source of debt for many), or perhaps a home or several homes owned in the clear. Whatever that point is, IMO to get there involves much more risk than it used to, whether it be time, money, health or all three. Not saying that there should be no risk, but there's a fine line between what's reasonable and what's detrimental to the overall economy.
Those that started with money definitely have the edge over those that started with no money. I think there's a happy medium regarding estate tax. I think a person should be allowed to leave a certain percentage to their heirs to insure their success. However, as it stands, that doesn't kick in until we hit 5 million. Others can argue the percentage (start at 50 percent to family, 50 percent to taxes and let the chips fall where they may with that argument). However, I think 5 million, when combined with a person's ability to invest tax-free overseas rigs the game so a smart person of wealth would always keep their 'domestic' estate below that 5 million line. When you combine this with money that has been passed on for many generations, combined with the notion that corporations are a type of person, you create this small elite collection of immense wealth. You could probably count on your hands how many of those that exist at this level got there by sheer determination and hard work. They are very much the exception that the norm at this level.
This type of inequality is dangerous, IMO. It creates an environment that makes the very government a mere marketplace for legislation afforded to those who can afford it. This is the government that we elect to insure that the playing field is fair and everyone is afforded an opportunity for success if navigated properly. This requires fair, balanced regulation with interests of the nation at heart, not the interests of the few. So if you belonged to this incredibly wealthy group, and you could afford to buy legislation, what would you buy? You'd probably buy legislation that worked out to your financial favor. So you influence things like how much teeth regulation committees have, who gets appointed, and what powers fall in their jurisdiction. You influence things like elections in favor of folks you personally know will provide financial security for you, whether that means waging wars, infringing on personal rights and freedoms, or creating financial systems that insure you stay at the top of the mountain. You influence things like international trade with countries you've invested in to reduce labor or avoid taxes. This has been going on for decades. Each instance of this, separates them from those still climbing that mountain. At best, domestically, it eliminates rungs in the corporate ladder, and it makes the grade up that mountain practically a vertical cliff in which each helping hand they throw at you means financial benefit to them (even if these 'helping hands' are government subsidies). All expenditures flow up to them. This is the reason why jobs are shipped overseas and that the majority of 'jobs' we've seen added to the economy are exactly that. They're not careers. They're mostly retail and service jobs in which the employee is expendable. At worse it devalues life itself, to the point that we see an increases in things like human trafficking, and markets for organ harvesting in which the wealthy carve up the poor for their kidneys, livers, gall bladders, etc.
You can argue all you want that these people are the evil devil incarnate, but it doesn't change the fact that at all instances up that ladder or mountain, a person is encouraged to act just like them. All is fair in the name of profit. The idea of actually removing wealth from someone and redistributing it evenly to the people below them in the name of balance and equality can be achieved either literally (it will never happen), or through over a period of time with a different type of tax structure, set of budget priorities, laws, fines and punishments, and massive cultural shift in the way we think.
As far as taxes go, I love what aborgman has proposed. Keep it real clear and eliminate all the tax loopholes that have been bought over time. All money over a certain amount is considered a corporation. Operations and profits (no matter what country it generated from) will be taxed as such. Tax relief will come in the form of reinvestment, bonus and profit sharing programs for employees (the more employees that benefit the greater the relief) and perhaps investment in domestic infrastructure could work as well (fund a bridge or a railway to offset your tax burden). The financial individual and all their inalienable and legal rights afforded to them stops at that certain amount. Above that they are owners of corporations and their corporation will be legally treated and taxed as such. I also think this would decentralize a lot of the money away from the banks. I believe there needs to be a clear distinction. Corporations are not financial 'people'.
Eliminate lobbies and Super PACS. I like Warren Buffet's idea for Congress regarding accountability. Their pay, jobs, and benefits should be determined on whether or not they pass a budget. Their retirement and their healthcare is to be the same the rest of the government employees. If they don't like it, they can work on fixing it. If they want to run for public office their finances are transparent and public record to pass scrutiny.
I would also only put Congress in charge of 50 percent of the budget. This would eliminate unnecessary wars that only benefit the wealthy few (or 'cost-plus' contracts for your cronies' companies, pet projects, discretionary spending, and corporate welfare. The other 50 percent is determined when a person pays taxes. Let the taxpayer determine where their money goes. A person could decide (perhaps by department) where their taxes go. You could establish that a minimum amount has to be distributed to each department, or you could let a person decide what percentage gets distributed to what department (the particulars of this could all be worked out in the wash). For example, and I don't presume to speak on anyone's behalf, but I might invest more into the department of education than others
. This money is predetermined and has to be spent as such. The remaining 50 percent is left to the discretion of congress.
I also believe that people should be allowed to vote on regulation and oversight appointees. For example, I'd like a say in who runs the FDA, the EPA, or Dept of Oil and Minerals.
Politics need to change too. I won't go into details anymore than I believe that the electoral college needs to be eliminated, and the system needs to be opened up to more than just two political parties. The reason I mention politics is because I believe the way our government has changed into a marketplace is a big contributor to the problem of income inequality.
Sorry for the long post.
However, the income inequality in our country has made this mountain much steeper with some parts being a virtual cliff with mines for footholds. An entry level job doesn't pay the bills for even the most frugal worker. To make ends meet they need either another job (or a working spouse) or they fall into debt. Debt can come in the form of the checks-for-cash store, credit cards in the mail, or through a poor investment in their own health (we're still in the middle of working this part out). Everyone has a different measure for what they feel is that step where they've made it past that risk, a profitable business, a condo, or property (which has become another source of debt for many), or perhaps a home or several homes owned in the clear. Whatever that point is, IMO to get there involves much more risk than it used to, whether it be time, money, health or all three. Not saying that there should be no risk, but there's a fine line between what's reasonable and what's detrimental to the overall economy.
Those that started with money definitely have the edge over those that started with no money. I think there's a happy medium regarding estate tax. I think a person should be allowed to leave a certain percentage to their heirs to insure their success. However, as it stands, that doesn't kick in until we hit 5 million. Others can argue the percentage (start at 50 percent to family, 50 percent to taxes and let the chips fall where they may with that argument). However, I think 5 million, when combined with a person's ability to invest tax-free overseas rigs the game so a smart person of wealth would always keep their 'domestic' estate below that 5 million line. When you combine this with money that has been passed on for many generations, combined with the notion that corporations are a type of person, you create this small elite collection of immense wealth. You could probably count on your hands how many of those that exist at this level got there by sheer determination and hard work. They are very much the exception that the norm at this level.
This type of inequality is dangerous, IMO. It creates an environment that makes the very government a mere marketplace for legislation afforded to those who can afford it. This is the government that we elect to insure that the playing field is fair and everyone is afforded an opportunity for success if navigated properly. This requires fair, balanced regulation with interests of the nation at heart, not the interests of the few. So if you belonged to this incredibly wealthy group, and you could afford to buy legislation, what would you buy? You'd probably buy legislation that worked out to your financial favor. So you influence things like how much teeth regulation committees have, who gets appointed, and what powers fall in their jurisdiction. You influence things like elections in favor of folks you personally know will provide financial security for you, whether that means waging wars, infringing on personal rights and freedoms, or creating financial systems that insure you stay at the top of the mountain. You influence things like international trade with countries you've invested in to reduce labor or avoid taxes. This has been going on for decades. Each instance of this, separates them from those still climbing that mountain. At best, domestically, it eliminates rungs in the corporate ladder, and it makes the grade up that mountain practically a vertical cliff in which each helping hand they throw at you means financial benefit to them (even if these 'helping hands' are government subsidies). All expenditures flow up to them. This is the reason why jobs are shipped overseas and that the majority of 'jobs' we've seen added to the economy are exactly that. They're not careers. They're mostly retail and service jobs in which the employee is expendable. At worse it devalues life itself, to the point that we see an increases in things like human trafficking, and markets for organ harvesting in which the wealthy carve up the poor for their kidneys, livers, gall bladders, etc.
You can argue all you want that these people are the evil devil incarnate, but it doesn't change the fact that at all instances up that ladder or mountain, a person is encouraged to act just like them. All is fair in the name of profit. The idea of actually removing wealth from someone and redistributing it evenly to the people below them in the name of balance and equality can be achieved either literally (it will never happen), or through over a period of time with a different type of tax structure, set of budget priorities, laws, fines and punishments, and massive cultural shift in the way we think.
As far as taxes go, I love what aborgman has proposed. Keep it real clear and eliminate all the tax loopholes that have been bought over time. All money over a certain amount is considered a corporation. Operations and profits (no matter what country it generated from) will be taxed as such. Tax relief will come in the form of reinvestment, bonus and profit sharing programs for employees (the more employees that benefit the greater the relief) and perhaps investment in domestic infrastructure could work as well (fund a bridge or a railway to offset your tax burden). The financial individual and all their inalienable and legal rights afforded to them stops at that certain amount. Above that they are owners of corporations and their corporation will be legally treated and taxed as such. I also think this would decentralize a lot of the money away from the banks. I believe there needs to be a clear distinction. Corporations are not financial 'people'.
Eliminate lobbies and Super PACS. I like Warren Buffet's idea for Congress regarding accountability. Their pay, jobs, and benefits should be determined on whether or not they pass a budget. Their retirement and their healthcare is to be the same the rest of the government employees. If they don't like it, they can work on fixing it. If they want to run for public office their finances are transparent and public record to pass scrutiny.
I would also only put Congress in charge of 50 percent of the budget. This would eliminate unnecessary wars that only benefit the wealthy few (or 'cost-plus' contracts for your cronies' companies, pet projects, discretionary spending, and corporate welfare. The other 50 percent is determined when a person pays taxes. Let the taxpayer determine where their money goes. A person could decide (perhaps by department) where their taxes go. You could establish that a minimum amount has to be distributed to each department, or you could let a person decide what percentage gets distributed to what department (the particulars of this could all be worked out in the wash). For example, and I don't presume to speak on anyone's behalf, but I might invest more into the department of education than others
. This money is predetermined and has to be spent as such. The remaining 50 percent is left to the discretion of congress. I also believe that people should be allowed to vote on regulation and oversight appointees. For example, I'd like a say in who runs the FDA, the EPA, or Dept of Oil and Minerals.
Politics need to change too. I won't go into details anymore than I believe that the electoral college needs to be eliminated, and the system needs to be opened up to more than just two political parties. The reason I mention politics is because I believe the way our government has changed into a marketplace is a big contributor to the problem of income inequality.
Sorry for the long post.
Just what we need to make level-headed decisions on who is worthy of having kids. I await the triumphant return of the Hapsburg lip.
