This is an interesting exchange that took place during a commercial break on Geraldo Rivera's show on FOX. The black man with the microphone is Charles Payne who is a FOX business analyst. The other black man is Russell Simmons, the very successful co-founder of hip-hop recording label Def Jam.
Simmons, the labor union guy, and the blonde woman want to say that nobody gets rich on their own, that the successful person like Payne uses infrastructure and institutions built and paid for by the people and that therefore successful people have an obligation to give back to the people. There are four things (at least) that puzzle me about this argument:
1. Almost half the people in the country don't pay federal income taxes and thus contributed next to nothing to that infrastructure and those institutions Payne benefited from so why does he owe them anything?
2. It's not as if Payne didn't contribute to the building of those things himself. As a taxpayer he paid as much as, if not more than, most people toward them so why should he now be expected to pay even more?
3. Even if the rich have an obligation to pay back to the people how much more should they pay? The top 1% of income earners (those making above $380,000) already pay 38% of all federal income taxes and the top 5% (those making above $160,000) pay almost 60%. How much more should they be expected to pay?
4. Even if we confiscated all the wealth of everyone in the country making over $250,000 per annum, which would, of course, be a one-time event because no one would produce anything after that, it would scarcely be enough to sustain current government spending levels for one year. Then what?
This video illustrates the problem:
The OWS folks and President Obama might think that taxing the rich is the solution to our problems, but they're either ignorant or mendacious. The solution to our problems, if there is one, is to cut government spending. Now.