Millionaires occupy Capitol Hill? Actually, these millionaires might be defecting to our side....
A good friend in Ohio passes along this report on what happened when a Patriotic Millionaire for Fiscal Strength made his elevator pitch for higher taxes to Congresswoman Kristi Noem:
Patriotic Millionaires for Fiscal Strength, a group formed to resist continued tax breaks for those earning more than $1 million, urged the supercommittee to reduce deficits by tapping the wealthy. Advocacy groups warned against steep cuts to programs for seniors and others.
About 20 people with Patriotic Millionaires buttonholed lawmakers in the Capitol, asking for higher taxes.
Lawrence Benenson, vice president of Benenson Capitol Co., ran into freshman Rep. Kristi Noem, R-Idaho [sic], in an elevator.
"I'm with the Patriotic Millionaires, and we want to pay more in taxes," he told her.
Noem grinned.
"How much more?" she asked [Lisa Mascaro, "Deficit-Panel Republicans Drawing Line on Tax Hikes," McClatchy via Columbus Dispatch, 2011.11.17].
(Apparently Rep. Noem is seeking to boost her cowgirl cred by moving out West.)
I know that when millionaires say jump, Kristi is used to saying, "How high?" But let's be specific: the Patriotic Millionaires are asking Rep. Noem and her colleagues to reject any Super Committee plan that doesn't raise the tax rate on incomes over a million dollars to at least 39.6%. According to numbers on the Patriotic Millionaires' website, that's not asking much:
- During the Great Depression, millionaires had a top marginal tax rate of 68%.
- In 1963, millionaires had a top marginal tax rate of 91%.
- In 1976, millionaires had a top marginal tax rate of 70%.
- Today, millionaires have a top marginal tax rate of 35%.
Five percentage points higher, Kristi. Still nowhere near the marginal rates that millionaires paid during the Depression or the Cold War. Can your millionaire friends handle that?
And Kristi, before you play the Orrin Hatch line of inviting the Patriotic Millionaires to voluntarily pay more taxes, read this:
To suggest that we try to tackle this problem by making individual contributions is, frankly, insulting. It is like suggesting to someone expressing a desire to serve their country by bearing arms that they buy a rifle and a plane ticket to Afghanistan. Some problems are too big to be solved except through collective effort and shared sacrifice, and this is one of them [Patriotic Millionaires for Fiscal Strength, letter to Senator Orrin Hatch, 2011.04.26].
The problem is the legislators. They write in loopholes so no one ever really paid that kind of rate. (nor should they.) 35% is high enough. Stop spending so much money and then talk about raising taxes. You could raise the tax rate to 90% again and they still wouldn't pay because they would find loopholes or have them written in to the law.
Mike, I agree. And earning ability also comes though Solydra/capital cronyism/winner and loser efforts and less through sound business efforts. That particluar winner/loser effort was tax payer funded while that failing company knew it couldn't hang on, and so did the White House. It was federal nonsense without reality of return.
Comporting with current tax law excluding tax loop holes means higher revenue for federal spending. We need to see a carving out of spending by Congressional/White House spenders through loopholes too. The Constitution should not be considered a loop hole.
Did you watch 60 Minutes Cory? Noem, Thune, and over 275 other members of Congress are at the mercy of Grover Norquist and his organization's pledge to NEVER raise taxes on anyone or face a Norquist funded primary challenge.
Norquist has them by the short hairs
Other points aside, hearing somebody shriek "Solyndra!" is like hearing a UFO-watcher in a tinfoil hat scream about "Roswell!"
When their tax rate was 91% then a five percent reduction in taxes would make a significant difference in how much they get to keep. Statistics of how much difference that made in their desicions should not be misconstrewed to be the difference when they are already keeping most of it already. If I remember correctly when the rates was 91% they had plenty of loopholes to keep more if they would create jobs. Now we just hope they will create jobs in a bad economic climate. Why would they.
Because 60 Minutes said Grover is that powerful I suppose its true for some people. Some people might also think it true if Fox News was reporting.
Chris - lol, good one. But that doesn't change facts.