Tax The Rich

by Rachel Gertz

60 Minutes aired 10-31-2010

Remember 60 Minutes? Here’s a compelling clip that discusses the implication of a tax to the US’s wealthiest 2%. The clip explores a proposed state tax increase in Washington to open up a discussion about the interests of millionaires vs the middle class.

Class war, my ass. This is just some middle ground for crying out loud.

Some basic facts:

  • Obama’s tax would only affect those who make $1 million or more annually; approximately 450 000 people.
  • It would tax these millionaires at the same rates they were previously taxed in the ’90s, before the massive Bush cuts.
  • There are seven US States who do not have any state income tax: Washington, Wyoming, Nevada, Texas, Florida, Alaska, South Dakota. Eight other states have imposed a billionaire tax recently to try to lighten the financial debt.

State Case Study

  • The Washington state initiative is called Initiative 1098.
  • The tax is valued at between 5%-9%: 5% to individuals who make over $200 000; up to 9% for those making a cool million.
  • Example: A dude who makes an income of $500 000 would pay $1200 (you only pay for any income OVER $100 000)
  • The money received would primarily be spent on the states starving education system
  • Microsoft (the current CEO, not Bill Gates), Proctor & Gamble, and Boeing don’t support the tax

Hmmm. What if we simply taxed every transaction large financial institutions make when they gamble our money away in stocks, dividends, and bonds) ? Check out the Robin Hood Tax.