The 1 Percent Indifferent to Their Indebtedness

by Leo Gerard

Leo Geard, USW President

Most Americans, the 99 percent, feel the pressure of indebtedness. When they owe a friend a buck, their conscience bothers them until they’re square. They pay their bills, working second jobs if necessary. They meet mortgage obligations even when underwater.

That’s why there was a deficit Super Committee. Americans don’t like debt, including bills owed by their government. It weighs on them, even when it’s borrowing by Washington to create jobs and speed recovery.

But for the majority of millionaires – the 1 percent — incurring debt does not evoke anxiety. They’re numb to the feeling of responsibility that indebtedness induces in the 99 percent. They believe they owe nothing to their country or society despite all they’ve gained. They feel no duty to repay America for creating the environment that enabled them to amass all that wealth.

Thus the Super Committee failed.

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13 Ways to ‘Tax the Rich’

By Jack Rasmus

Jack Rasmus

The ‘Occupy Wall St.’ movement across the USA has raised the slogan of ‘We Are the 99%’ and the related ‘99% vs. the 1%’. Thus far the idea of taxing the rich has remained stated in general terms. For greater impact it must be further clarified, or else it will be misinterpreted and co-opted by politicians pushing false ideas while claiming to tax the rich but not really doing so—such as the recent proposals by Republican presidential candidate Cain’s phony 9-9-9 or even Obama’s ‘millionaires tax’. The following is an effort to suggest various measures to ‘tax the wealthiest 1%’ that represent true, progressive tax the rich proposals.

Tax Program #4.1: Professional Investors’ Tax Haven Repatriation Tax.

About $4 trillion today is held in offshore tax havens by US investors, individuals and institutions, in island nations like Cayman islands, Vanuatu, Seyschelles, Isle of Man, Cyprus, etc., and in more traditional havens like Switzerland, Lichtenstein, and so forth. The IRS has identified 27 of these, which it calls ‘special jurisdictions’. If just $2 trillion >of that $4 trillion was required to be re-deposited in US banks, those investors would have to pay the 35% top tax bracket personal income tax on the $2 trillion in the first year, raising about $700 billion. Future earnings on the remainder would also be taxed in the second to fifth years, yielding another $200 billion a year. Refusal to repatriate could result in a 10% penalty after 90 days, followed by similar penalties. Countries that refused to cooperate should have their US based assets frozen and then taxed until compliance.

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