Thursday, September 27, 2012

Mitt Romney's taxes and the common good

Joe Stiglitz in Mitt Romney's tax avoidance weakens bonds of American society Guardian 09/03/2012 looks at how tax avoidance by prominent wealthy people like Republican Presidential candidate Mitt Romney serves to undermine the basic social contract in the United States:

Conservative politicians in the US underestimate the importance of publicly provided education, technology, and infrastructure. Economies in which government provides these public goods perform far better than those in which it does not.

But public goods must be paid for, and it is imperative that everyone pays their fair share. While there may be disagreement about what that entails, those at the top of the income distribution who pay 15% of their reported income (money accruing in tax shelters in the Cayman Islands and other tax havens may not be reported to US authorities) clearly are not paying their fair share. ...

Democracies rely on a spirit of trust and co-operation in paying taxes. If every individual devoted as much energy and resources as the rich do to avoiding their fair share of taxes, the tax system either would collapse, or would have to be replaced by a far more intrusive and coercive scheme. Both alternatives are unacceptable.

More broadly, a market economy could not work if every contract had to be enforced through legal action. But trust and co-operation can survive only if there is a belief that the system is fair. Recent research has shown that a belief that the economic system is unfair undermines both co-operation and effort. Yet, increasingly, Americans are coming to believe that their economic system is unfair; and the tax system is emblematic of that sense of injustice. [my emphasis]
Democracy can't survive the extremes of wealth that our tax policies are creating. It isn't just about budgets or deficits, it's about the nature of our political system and political commonwealth.

Tags: ,

| +Save/Share | |

Links to this post:

Create a Link




FEATURED QUOTE

"It is the logic of our times
No subject for immortal verse
That we who lived by honest dreams
Defend the bad against the worse."


-- Cecil Day-Lewis from Where Are The War Poets?


ABOUT US

  • What is the Blue Voice?
  • Bruce Miller
  • Fdtate
  • Marcia Ellen (on hiatus)
  • Marigolds2
  • Neil
  • Tankwoman
  • Wonky Muse

  • RECENT POSTS

  • Obama talks about violence to the UN General Assem...
  • Josh Barro on Romney and the "47%"
  • Argentina's Cristina Fernandez and Brazil's Dilma ...
  • Eliot Spitzer on Obama's jobs priority
  • Germany's Merkel and France's Hollande make nice w...
  • Jennifer Granholm talks about redistribution to Mi...
  • Former German Chancellor Schmidt warns against Ger...
  • About that melting Arctic ice
  • German Finance Minister Wolfgang Schäuble on furth...
  • Report on the Occupy movement now

  • ARCHIVES




    RECENT COMMENTS

    [Tip: Point cursor to any comment to see title of post being discussed.]
    SEARCH THIS SITE
    Google
    www TBV

    BLUE'S NEWS





    ACT BLUE











    BLUE LINKS

    Environmental Links
    Gay/Lesbian Links
    News & Media Links
    Organization Links
    Political Links
    Religious Links
    Watchdog Links

    BLUE ROLL


    MISCELLANEOUS

    Atom/XML Feed
    Blogarama - Blog Directory
    Blogwise - blog directory

    Blogstreet
    Haloscan


    Blogger

    hits since 06-13-2005

    site design: wonky muse
    image: fpsoftlab.com