Speaking of badges of honor, Adam Smith wrote that taxation was a badge not a burden. Yes, the father of capitalism wanted the Elon Musks of the world to pay very high taxes. We might admire the entrepreneur for his vision, energy, and creativity, But, as Smith knew, capitalism over-rewards (Exhibit A: Mark Zuckerberg), and unbridled capitalism destroys itself by destroying the free market. Taxes curb the power of the wealthy, and can be used for things that most entrepreneurs have no interest in, such as roads and bridges, i.e., infrastructure.
We used to have a prosperous Smithian capitalism in this country, with high taxes, until the path to the New Gilded Age was laid by that lickspittle Milton Friedman and his sidekick, Ronald Reagan. So, if you really want MAGA, you must RAISE taxes for goodness sake.
It's not socialism, it's capitalism. Bring on the wealth tax and everything will fall into place.
you make several excellent points. I started out being against the wealth tax. It wasn't personal, it was that I have an aversion to the government doing complex taxation, because of the administrative burden. so, having confessed that, I am now in favor of it. simply because of the ridiculous and arrogant behavior of people like Musk. the libertarian ethic of the tech barons is doing harm to our country. in WWII, the CEO of GM left his job to run the effort to build aircraft for the government - for $1 a year. when he was told by the board chair he wouldn't get his job back, he basically said "okay, I'm doing it anyway, cause of what America has done for me." where are those kind of people now?
I agree with you. I was also against the wealth tax when I first heard it mentioned, and thought of Piketty as some kind of socialist. Now I'm all in. Musk is exactly the kind of creature Smith wanted to avoid.
Our New Age is another age of socialism, this time for the wealthy rather than the common man - so Musk is one of the new Welfare Queens. How else can you describe it? The non-payment of taxes is nothing more than government welfare for rich people. Since the truly wealthy don't have much income, their wealth must be taxed.
And 20% is far too little.
Suppose your name is, I dunno, Mark Zuckerberg. Your wealth is $150 billion. 20% takes away $30 billion, so he is now worth $120 billion. Next year his net worth goes up $15 billion. Tax that at 20%, and he is now worth $130 billion, almost back to baseline. Now make the tax 50%, and after a year his assets amount to $82.5 billion, and after two years $90 billion, and rising. After 5 years, he is worth $120 billion and rising....so it's not as onerous as it sounds.
How does Mr. Zuckerberg pay his 50% tax bill? Does he dump 50% of his Facebook stock onto the stock market, causing the Facebook stock price to crash, reducing his net worth even more than 50%, or does he simply transfer ownership of the stock to the US government, making the government a major (if not the largest) stockholder of Facebook? A billionaire owner of a private business may have to sell the business to raise the capital to pay the tax, or make the US government a partner in the business.
He WOULD indeed have to sell stock, CEOs do that all the time. As for Facebook, the corporation is worth a lot more than Zuckerberg, so it would barely make a dent, particularly since investors know that sales like this in all corporations are to be expected every April. So it would not be a surprise. The sky would not fall.
As for government as a business partner, agreed. Don't want government as a business partner, lived through that when I was growing up - it's a disaster. No, government is there to raise taxes, spend on infrastructure, maintain the legal system and policing, as well as to fund and direct the armed services.
A graduated income tax could not POSSIBLY be any simpler! Someone making a measely $35,000 a year? .25% tax or lower. Someone stealing TRILLIONS each year? 10% of NET WORTH.
We could give EVERY American not only Medicare for All, but a GUARANTEED INCOME like a REAL "first world countryty!" [sic (four years of Bunkerboy ruined my English.)]
My understanding of a graduated income tax is a higher marginal income tax rate, which I fully support. My understanding of a wealth tax is a tax on net worth. Much harder to administer and a boon for lawyers helping people hide net worth. But I also support that for the reason I mentioned
Wealth tax. The markets turned against Musk as soon as he decided to acquire Twitter. He lost $22 billion in Tesla value a few hours after he made the offer. That's an "organic" loss costlier than any tax.
Apparently the shorts still far outnumber the long plays on the options market.
Twitter shares ended down another 1.5% at $39.57 on Monday, a large discount to the target $54.20 per share deal price, as investors bet against Musk.
The infrastructure law provided funding to companies in competition with Tesla.
It took the Great Depression and WWII to tax the wealthy at the previous Gilded Age. How much devastation must we endure before we do what we know actually works?
Elizabeth Warren has been after a wealth tax for years. Completely agree. This skirmish about to erupt between MAGA and the rest of the country (January 6th hearings) will be, I think, the proverbial canary in the coal mine regarding the directional future of our country.
TOTALLY. Our democracy's foundation is the "rule of law," laws that are meant to protect our country, our people. Never has the legitimate authority of our laws been more important than at this moment. The DOJ should rein in democracy's criminals and our security agencies (FBI, CIA, National Security Agency) should be able to protect us from the onslaught of violent militias. I fear we are going to get a chance to see how well all this works in the months to come.
Well, I think that capitalism puts profits before people, but if you feel that wealth taxes are still part of the status quo (we did have them once), then use that argument in capitalists.
Do U think that is preferable to boot licker or butt kisser?? I’m assuming the meanings are all the same??!! Seems like the Rethugs have a preponderance of folks who own that adjective!!
This is slightly off topic, but I’m going to digress anyway. Remember in 2021, in the depth of COVID-19, when New York City, and other caring places Nationwide held a vigil every evening honoring “essential workers”? Well, those essential workers are still out there doing their jobs and they are still essential. This about one group of those essential workers, the delivery persons. Do you think Louis De Joy, Carol Tome, Frederick W, Smith or any of the aristocrats heading large corporations would step out of their air- conditioned, offices for one day to drive in an unairconditioned truck for 8 to 16 hours (in one day)? And yet, delivery drivers for USPS, UPS, FedEx, and numerous others demand exactly that. It’s not just the heat, I live in California, not only are we anticipating a long hot summer, we’re also anticipating a worsening fire season. The clouds of carbon filled smoke drift easterly (the winds blow from the west) so all the States between here and the Rocky Mountains are also inundated with choking smoke from the fires in California, Oregon, and Washington.
My Grandson worked one summer for USPS until his asthma grew so bad, he had to quit. My Granddaughter is a driver for UPS, she still is. Both delivered products to all of us, my granddaughter continues to do so. There are documented cases of heat stroke among these drivers and deaths due to heat stroke. If the unions are aware of this, they are doing nothing, if they aren’t aware they should be. I advised my Granddaughter to attend union meetings and if she works too late to attend, talk to the shop steward and demand action. Put it in writing.
But that will drive up the cost of delivering, you say. Why? Even if it cost $2000 per truck (and I think that is high) what is the life of the driver worth? A month’s worth of fine Scotch? A couple of boxes of cigars? The weekly fee at the Country Club? Surely the ultra-wealthy could afford that little dab?
I am in the age group I refer to as End Of Lifers. I quit driving 5 years ago when I considered myself an unsafe driver. Now retired, I find even walking is difficult. All my shopping is online, I am totally dependent on the essential workers who deliver my purchases. I could probably absorb a 10% increase in delivery fees. I usually tip 20% anyway. I think this is a union issue and If I were still on the Board of Directors of the two unions to which I belonged I’d start making demands. But if the unions can’t or won’t demand it, it should come under the umbrella of health care and perhaps some conscientious politician could write a bill enforcing the necessary expense on the delivery agencies.
No, I am not anti-union. When I became a teacher the first thing I asked at orientation, was how do I join the union? I later was elected to the Board of Directors for thar t union and remained so until I retired from teaching. I then went to work for a California County. Again, I immediately joined that union, was soon elected to the Board of Directors, and again re-elected until I retired. I was also part of the negotiating teams and the political action committees. I just recognize that as important as they are, unions have some flaws, they are only as good as the leadership.
Fay, thanks for this. Incidentally, the Labor Department's Bureau of Labor Statistics just reported that the job categories expected to expand the most over the next few years are warehouse and delivery.
Human or robots? Amazon has drone delivery in some places. Driverless vehicles.
Workers' comp covers injuries and illness connected to the job. I heard Surface Transportation Assistance Act cases. Surface Transportation Assistance Act (STAA)
49 U.S.C. §31105 Employee protections.
(a) Prohibitions. -
(1) A person may not discharge an employee, or discipline or discriminate against an employee regarding pay, terms, or privileges of employment, because -
(A)
(i) the employee, or another person at the employee's request, has filed a complaint or begun a proceeding related to a violation of a commercial motor vehicle safety or security regulation, standard, or order, or has testified or will testify in such a proceeding; or
(ii) the person perceives that the employee has filed or is about to file a complaint or has begun or is about to begin a proceeding related to a violation of a commercial motor vehicle safety or security regulation, standard, or order;
(B) the employee refuses to operate a vehicle because -
(i) the operation violates a regulation, standard, or order of the United States related to commercial motor vehicle safety, health, or security; or
(ii) the employee has a reasonable apprehension of serious injury to the employee or the public because of the vehicle's hazardous safety or security condition;
(C) the employee accurately reports hours on duty pursuant to chapter 315;
(D) the employee cooperates, or the person perceives that the employee is about to cooperate, with a safety or security investigation by the Secretary of Transportation, the Secretary of Homeland Security, or the National Transportation Safety Board; or
(E) the employee furnishes, or the person perceives that the employee is or is about to furnish, information to the Secretary of Transportation, the Secretary of Homeland Security, the National Transportation Safety Board, or any Federal, State, or local regulatory or law enforcement agency as to the facts relating to any accident or incident resulting in injury or death to an individual or damage to property occurring in connection with commercial motor vehicle transportation.
(2) Under paragraph (1)(B)(ii) of this subsection, an employee's apprehension of serious injury is reasonable only if a reasonable individual in the circumstances then confronting the employee would conclude that the hazardous safety or security condition establishes a real danger of accident, injury, or serious impairment to health. To qualify for protection, the employee must have sought from the employer, and been unable to obtain, correction of the hazardous safety or security condition.
Thank you for this, Daniel. I will copy and send to my Granddaughter with the admonition to present it at the next union meeting and to give a copy now to the shop steward. I am very much appreciative,
This is great to know Fay. I too am very pro-union. Unions can become corrupted to. You’re right about that but overwhelmingly they insure better treatment for employees.
All of these delivery people and hospital personnel etc sacrificed so much during Covid. I tipped 25% throughout Covid for as many service people as I could. My husband is working and I felt we should be as generous as we can while we have a decent income. It’s not much really but even those with a minimum wage of $15 can’t possibly get ahead with expenses today. I would like all tips to go away and all companies to support their employees with proper wages, not rely on us to subsidize at various rates.
We need to pay what people are worth and pay more for the products. Buy 2 quality shirts per year instead of 10 because they’re cheap and don’t last. We need to be re-trained!
You are certainly Speaking Reason. Problem is all of us are preaching to the choir. The people we need to reach are the top 1% and then all the trumpsters who believe their hero is promising them Utopia while he is giving the Hell.
All men and women that do an honest day's work is essential to society. I remember when I was growing up, people would look down at the garbage collectors. Can you imagine what the cities would look like without them? Their work not only keeps the city clean, but it also keeps the people in the city healthy.
Absolutely and we have seen what that looks like. Remember when the garbage collectors went on strike in New York City? The pictures of the streets were appalling. And yes all worker's doing an honest day's work deserve more than minimum wage, they deserve a living wage. The only people we could possibly live without are the top 1%
Jun 7, 2022·edited Jun 7, 2022Liked by Robert Reich
Musk's image of a socially and environmentally conscious individual has faded. The chic nature of purchasing one of his EVs, for example, will dissipate before his treatment and condemnation of American workers, his enrollment in the Republican party and, should he acquire Twitter (which, I believe, he is trying to walk away from) and then allow former president Trump back, will repel those consumers. I, for one, will never buy a Tesla EV.
Musk is a con man extraordinaire. Did you know a Tesla has no manual adjustment for its side view mirrors? You have to go into the "app". That's probably when you will have that accident - the "deer that came out of nowhere" because you were working a touch screen.
Most of what Musk has promised he has not delivered. Great writing out there now about his arrogance and endless stream of BS. I gag when I see a Tesla now...
I already have a Tesla. I love it but didn’t know what an ass Musk was. Hopefully people won’t take it out on our cars. There are no left wing car companies here. They are mega businesses and support causes we don’t.
You can only know what you know at the moment. A lot of people own Tesla's and may well regret it and, like you, will look elsewhere for their purchases. I wonder if, just maybe, Musks fame is peaking? Finally, everything that is awful about him is finally being revealed. He is an extravagant, overblown plutocrat in everyone face.
There are many, many outstanding car makers that now produce electric cars. I understand you bought your car before you knew Musk was a humanoid, he's absolutely awful for a thousand reasons...still, enjoy your car, maybe you'll make a different choice next time.
I’m a team player and have always paid every dime of taxes I owned. I love the idea of making America stronger. I ran a small business and by investing back into the business I created a bigger pie not just a bigger slice. Everyone benefited and yes it’s that simple. Honesty is the best policy. I respect everything you wrote and totally agree
A bit off topic, I started collecting SS as a survivor (my husband was 10 years older and always was paid better than me). At 70 I am semi retired and pay into social security, I view the money I have paid over my lifetime of working as contributing to the ‘pot’ and am happy to do so 😊
Unions are going to face enormous pushback. The Starbucks in Ithaca, NY, a very profitable store, closed up shop after employees voted to unionize. Amazon is learning how to stop unions from forming in its warehouses. With unregulated capitalism as a main goal and a key issue in the fights between parties winning the right of workers to unionize might be a prolonged and painful crusade, but one that it is worthwhile to undertake.
One hundred million followers on Twitter may not translate into 100 million votes but Americans do seem to like sheer audacity, ego, and wealth over dedicated public service these days. I keep hoping that Elon Musk will turn into a real boy one day.
I like Joe Biden as President more than I thought I would. However I am worried about his poll numbers and his age. Perhaps he should hint at who he might make his heir apparent just in case. Too bad America did not vote in the Congress he needed. He is unable to show how well his policies might work for middle-class Americans.
As for returning to the presidency the man who was raised to be a fascist, the man who made an oath to protect a constitution he had most likely never read, a man who should be on trial for sedition, it is a possibility that both shows how a democracy functions and how it can bring about its own demise. We are all fighting to prevent this from happening but without the support of our justice system we are still having trouble trying to win an advantage.
I will boycott any company that is a union buster. What you believe and what you actually do are related. If people choose greedheads and crooks for leaders, they deserve what they get.
Professor Reich is definitely making exactly the kinds of powerful statements that might sway more voters and there are many other voices too including MSNBC and Heather Cox Richardson. I have been speaking from the cheap seats for a decade too. But the media muddles the message and many Americans think a society is only about economics. Everyone wants to be at least a multimillionaire and being a worker bee no longer seems to be enough. Sometimes the left seems to be just speaking into the wilderness. What is so great about the prof is that he is trying to figure out how to get people to listen. Wish I knew the answer to that.
N.L. Brisson ; There is nothing more effective and durable to get people's attention than to point out what is in their best interests. If there is a better deal, smart people learn about it. The less smart keep voting for those who do not deliver and do everything against their best interests ; from clean air, water, untainted food, fairness in the economy and taxes, to justice.
That’s a valid point! Unfortunately a lot of smart people are also wealthy! There is no easy way to persuade them it’s in their best interest to pay more taxes! This was a great opportunity for the government to act. This is why I abhor Joe Manchin and Sinema!
Jean Chakour ; It is frustrating to see very wealthy people have so much power and be blind to the damage that wealth inequality, degradation of the environment and poor education can have ultimately on the quality of all of our lives. The common good will not improve with the downward spiral of injustice, with mass shootings (for profit!) and the selling of our country to the highest (not the best) bidders.
Totally agree! The problem is that those of us who are listening to Robert Reich already agree with him and getting "MAGA" or Musk followers to listen is practically impossible.
They would no more open their minds to him than I would to Tucker Carlson. I too wish I knew the answer.
I like Stacey Abrams and I like Andrew Yang, although I would have to know more about Andrew. Right now I am liking Senator Chris Murphy. Someone younger, hipper (although Biden can seem hip on occasion, and when Steven Colbert puts on those sunglasses he recalls the Biden of the Obama era), someone passionate but rational, authentic but also strategic.
perhaps most frightening (for me) is that the NYTimes -- a newspaper-of-record that i once read daily & admired & wished to write for -- is now in political turmoil so that few people understand what is happening there or where the newspaper's editors stand on the issues each week. where can the public turn to get consistently excellent independent journalism that is not aimed at satisfying a filthy-rich man's ego? there are few choices available.
Great suggestion Professor Reich! I’ve relied upon The Guardian’s superb news coverage and insightful analyses for several years.
Unlike The New York Times, The Guardian’s fearless investigative reporters and editorial board members never hesitate to publish groundbreaking news and take important political stands, regardless of the risks and political repercussions that might occur.
i canceled my NYT subscription 3 months ago. the amount of hoop-jumping they required me to go through to cancel was unacceptable. for example, subscribing is a process that requires three (i think) clicks, but canceling my subscription required me to sit in a chat queue online for almost an hour! then, after i'd waited for a looong time and had quietly achieved maximum rage level, they wanted to know why i wanted to cancel, so i told them. (yes, i referred to my notes i'd made so my rage didn't blot out my reasons for cancelling. yes, i was polite.)
then, weirdly, the next day, they emailed a link to an online questionnaire that again, asked me why i was cancelling. but that online questionnaire never downloaded so i couldn't reiterate and underscore my outrage. that was frustrating because i was SO looking forward to making sure they got my message.
oh, and now, i get an email every day from them, telling me i can resubscribe for a "special price".
i wrote for The Guardian for 6.5 years, so i share your high opinion of its journalism! i'm currently enamoured by ByLine Times (it's British) which i have $upported for 1.5 years now, and am looking closely at Boston Review and will likely support it soon, too. I also love The Economist, but even as a digital-only subscription, it's expensive! you mentioned The New Yorker -- i absolutely love it -- and am awaiting an affordable digital-only subscription offering.
Those sound like great recommendations! I did find The Economist too far right for my taste though. The New Yorker is my desert island reading. It is expensive though.
i think it's good to read those whose (coherent, cogent, provocative, thoughtful) opinions differ from my own. it keeps my mind awake and, well, thinking. thus, The Economist. it makes my own arguments stronger (or so i like to believe) and it helps remind me that not ALL people who stand on the political right of where i stand (quite left, actually) are mindless knee-jerk demons.
the New Yorker does sometimes have online subscription specials ... i think they've got one now, or will soon. it's about that time of the year ...
I find it hard not to read opinions that are different from mine since they’re so pervasive. 😀 I used to be able to get a very cheap subscription to The New Yorker when my mother was a teacher. Even without that, though, it’s gone up astronomically. It’s worth it but it’s pretty steep.
those who disagree with me are often abusive lunatics. but not always. i want to know why people whose opinions differ from my own opinions (and experiences) think the way they do. if i understand them and where they are coming from, maybe they will understand me and my arguments? and if not, whatevs. either they're conspiracy theorist-lunatics or i've not made my arguments clearly enough.
Thank you for stating that a rich corporate person should be judged by the way he treats his workers. His uncaring attitude toward workplace safety, resulting in the ravages of COVID, is inexcusable.
Completely agree. Elon Musk is a selfish dick who wasted a lot of money and fuel shooting himself into space. He should have stayed there.
Being famous and rich has nothing whatsoever to do with the ability to govern wisely. People seem to have lost the ability to make the distinction. Voting for Oz is like voting for Elvis or the Beatles for Senate.
Long ago we chose not to have a monarchy so we didn’t have to put up with any particular genetic toss of the dice in charge of our lives.
We seem to be substituting wealth instead of
a royal gene pool as the determining factor for choosing leaders and getting the same dismal outcome as a result.
The advice from the NYT is ridiculous and speaks poorly of its editor. He needs to stay in his lane and check his hero worship at the door to his office.
GrAnnie! Perfect! Love that you mentioned a correlation between monarchy vs. wealth in determining leaders..I never thought of that but that is so true!!
You are correct. My bad. I should have checked which billionaires were wasting money and fuel and started my rant with my assessment of Musk’s character.
Don't refer to them as Republican MAGA candidates - they are MAGGOT Republicans who only know how to destroy and cause decay in our society. Maybe someone fed up with Musk will shove an AR-15 up his ass soon. Am SO tired of those with big mouths, tiny dicks and no conscience always taking center stage.
A hearty thumbs up to you, Michael Hutchinson! I used to teach chapters from The Wealth of Nations, a work that true capitalists should be familiar with before they destroy themselves (and everyone else, by the way!). On another note, it's hilarious to me that Dr. Oz has anyone in the Maga crowd supporting him. I don't know what his personal religious preference is, but for sure his name is Islamic in origin. "Mehmet," his first name, is a variation of "Mohammed." Of course, the Maga crowd is too ill-informed to know this!!! They'd rather concentrate on a "true" Muslim, like Barack Hussein Obama!
Another superb and sobering commentary on the vanishing American democratic republic by brilliant Professor Reich.
It is shameful that The New York Times is so intimidated by Elon Musk’s immense wealth and huge number of Twitter fans that the Times has abandoned responsible journalism reporting standards. The New York Times barely mentioned Musk’s dismal record of mistreating Tesla employees and engaging in illegal labor practices. Case in point: In September 2019, California administrative judge Anita Tracy ruled that Tesla had violated U.S. labor laws 12 different ways.
The atrocious steady decline in the quality of US news reporting and the overall US media throughout the years is partly responsible for the continued “dumbing down” of the American electorate. Of course the failure of America’s public schools to educate students about their civic rights and privileges and the basic history of U.S. governmental branches is also responsible for US citizens’ abysmal ignorance about the US government and the US election system.
A citizenry that lacks critical analytical skills and knows nothing or very little about its country’s governmental structure and important election system is easily susceptible to the dangerous and crazy ideas of a seemingly personable lunatic like Dr. Mehmet Oz.
Musk is a self proclaimed narcissist with asbergers syndrome which sadly makes him very smart and has created great success materially. But he lacks the empathy and social conscience/social intelligence that is key to true leaders like Biden. Unfortunately material success has great currency over spiritual values today. To my young high school graduates and college grandchildren keep the prize of humility, compassion and empathy healthy in your passions and dreams.
Bravo for these comments! and shame on Andrew Ross Sorkin for peddling his rubbish. We need to live by the basic values of Joe Biden (and Robert Reich) and not those of egomaniac narcissists like Elon Musk.
I agree with your assessment of the dangers to Amercan democracy, Dr. Reich! But how do you convince the powerful in America not to "cut off" the "cancer" they think the rest of us are?
The problem with America runs deeper than your profound analysis! As it stems from what shapes and forms our understandings of what the problems are!
Sorkin and company just lost this reader. Really now. Cozy up to Elon Musk is a. not possible and b. could never be genuine. He is a manipulator only self interested with zero public good in mind. Biden is a grown up with principles no matter what the scorecard of popularity says. Content is what matters. Principled content.
Speaking of badges of honor, Adam Smith wrote that taxation was a badge not a burden. Yes, the father of capitalism wanted the Elon Musks of the world to pay very high taxes. We might admire the entrepreneur for his vision, energy, and creativity, But, as Smith knew, capitalism over-rewards (Exhibit A: Mark Zuckerberg), and unbridled capitalism destroys itself by destroying the free market. Taxes curb the power of the wealthy, and can be used for things that most entrepreneurs have no interest in, such as roads and bridges, i.e., infrastructure.
We used to have a prosperous Smithian capitalism in this country, with high taxes, until the path to the New Gilded Age was laid by that lickspittle Milton Friedman and his sidekick, Ronald Reagan. So, if you really want MAGA, you must RAISE taxes for goodness sake.
It's not socialism, it's capitalism. Bring on the wealth tax and everything will fall into place.
you make several excellent points. I started out being against the wealth tax. It wasn't personal, it was that I have an aversion to the government doing complex taxation, because of the administrative burden. so, having confessed that, I am now in favor of it. simply because of the ridiculous and arrogant behavior of people like Musk. the libertarian ethic of the tech barons is doing harm to our country. in WWII, the CEO of GM left his job to run the effort to build aircraft for the government - for $1 a year. when he was told by the board chair he wouldn't get his job back, he basically said "okay, I'm doing it anyway, cause of what America has done for me." where are those kind of people now?
I agree with you. I was also against the wealth tax when I first heard it mentioned, and thought of Piketty as some kind of socialist. Now I'm all in. Musk is exactly the kind of creature Smith wanted to avoid.
Our New Age is another age of socialism, this time for the wealthy rather than the common man - so Musk is one of the new Welfare Queens. How else can you describe it? The non-payment of taxes is nothing more than government welfare for rich people. Since the truly wealthy don't have much income, their wealth must be taxed.
And 20% is far too little.
Suppose your name is, I dunno, Mark Zuckerberg. Your wealth is $150 billion. 20% takes away $30 billion, so he is now worth $120 billion. Next year his net worth goes up $15 billion. Tax that at 20%, and he is now worth $130 billion, almost back to baseline. Now make the tax 50%, and after a year his assets amount to $82.5 billion, and after two years $90 billion, and rising. After 5 years, he is worth $120 billion and rising....so it's not as onerous as it sounds.
How does Mr. Zuckerberg pay his 50% tax bill? Does he dump 50% of his Facebook stock onto the stock market, causing the Facebook stock price to crash, reducing his net worth even more than 50%, or does he simply transfer ownership of the stock to the US government, making the government a major (if not the largest) stockholder of Facebook? A billionaire owner of a private business may have to sell the business to raise the capital to pay the tax, or make the US government a partner in the business.
He WOULD indeed have to sell stock, CEOs do that all the time. As for Facebook, the corporation is worth a lot more than Zuckerberg, so it would barely make a dent, particularly since investors know that sales like this in all corporations are to be expected every April. So it would not be a surprise. The sky would not fall.
As for government as a business partner, agreed. Don't want government as a business partner, lived through that when I was growing up - it's a disaster. No, government is there to raise taxes, spend on infrastructure, maintain the legal system and policing, as well as to fund and direct the armed services.
A graduated income tax could not POSSIBLY be any simpler! Someone making a measely $35,000 a year? .25% tax or lower. Someone stealing TRILLIONS each year? 10% of NET WORTH.
We could give EVERY American not only Medicare for All, but a GUARANTEED INCOME like a REAL "first world countryty!" [sic (four years of Bunkerboy ruined my English.)]
My understanding of a graduated income tax is a higher marginal income tax rate, which I fully support. My understanding of a wealth tax is a tax on net worth. Much harder to administer and a boon for lawyers helping people hide net worth. But I also support that for the reason I mentioned
Maybe people should be taxed on the number of Twitter followers they have. (That’s a joke but still, it is wealth, isn’t it?)
Right you are.
Wealth tax. The markets turned against Musk as soon as he decided to acquire Twitter. He lost $22 billion in Tesla value a few hours after he made the offer. That's an "organic" loss costlier than any tax.
Apparently the shorts still far outnumber the long plays on the options market.
Twitter shares ended down another 1.5% at $39.57 on Monday, a large discount to the target $54.20 per share deal price, as investors bet against Musk.
The infrastructure law provided funding to companies in competition with Tesla.
https://www.reuters.com/business/autos-transportation/us-spend-more-than-3-bln-ev-battery-manufacturing-white-house-2022-05-02/
It took the Great Depression and WWII to tax the wealthy at the previous Gilded Age. How much devastation must we endure before we do what we know actually works?
Great and accurate points.
Elizabeth Warren has been after a wealth tax for years. Completely agree. This skirmish about to erupt between MAGA and the rest of the country (January 6th hearings) will be, I think, the proverbial canary in the coal mine regarding the directional future of our country.
I think so too! If this doesn’t blow their crimes wide open, there will be no one left to support or trust our DOJ.
TOTALLY. Our democracy's foundation is the "rule of law," laws that are meant to protect our country, our people. Never has the legitimate authority of our laws been more important than at this moment. The DOJ should rein in democracy's criminals and our security agencies (FBI, CIA, National Security Agency) should be able to protect us from the onslaught of violent militias. I fear we are going to get a chance to see how well all this works in the months to come.
Precisely. I’m waiting to exhail!
Well, I think that capitalism puts profits before people, but if you feel that wealth taxes are still part of the status quo (we did have them once), then use that argument in capitalists.
Capitalism without proper regulations is truly a system of greed.
I love that word “lickspittle.”
Yeah, that IS a good word, isn't it? First person coming to mind is Lindsey Graham!
Do U think that is preferable to boot licker or butt kisser?? I’m assuming the meanings are all the same??!! Seems like the Rethugs have a preponderance of folks who own that adjective!!
I think it’s much more elegant than the other terms. It’s English and literary vs. street. But there’s a place for all of them. 😀
Excellent comment Michael.
This is slightly off topic, but I’m going to digress anyway. Remember in 2021, in the depth of COVID-19, when New York City, and other caring places Nationwide held a vigil every evening honoring “essential workers”? Well, those essential workers are still out there doing their jobs and they are still essential. This about one group of those essential workers, the delivery persons. Do you think Louis De Joy, Carol Tome, Frederick W, Smith or any of the aristocrats heading large corporations would step out of their air- conditioned, offices for one day to drive in an unairconditioned truck for 8 to 16 hours (in one day)? And yet, delivery drivers for USPS, UPS, FedEx, and numerous others demand exactly that. It’s not just the heat, I live in California, not only are we anticipating a long hot summer, we’re also anticipating a worsening fire season. The clouds of carbon filled smoke drift easterly (the winds blow from the west) so all the States between here and the Rocky Mountains are also inundated with choking smoke from the fires in California, Oregon, and Washington.
My Grandson worked one summer for USPS until his asthma grew so bad, he had to quit. My Granddaughter is a driver for UPS, she still is. Both delivered products to all of us, my granddaughter continues to do so. There are documented cases of heat stroke among these drivers and deaths due to heat stroke. If the unions are aware of this, they are doing nothing, if they aren’t aware they should be. I advised my Granddaughter to attend union meetings and if she works too late to attend, talk to the shop steward and demand action. Put it in writing.
But that will drive up the cost of delivering, you say. Why? Even if it cost $2000 per truck (and I think that is high) what is the life of the driver worth? A month’s worth of fine Scotch? A couple of boxes of cigars? The weekly fee at the Country Club? Surely the ultra-wealthy could afford that little dab?
I am in the age group I refer to as End Of Lifers. I quit driving 5 years ago when I considered myself an unsafe driver. Now retired, I find even walking is difficult. All my shopping is online, I am totally dependent on the essential workers who deliver my purchases. I could probably absorb a 10% increase in delivery fees. I usually tip 20% anyway. I think this is a union issue and If I were still on the Board of Directors of the two unions to which I belonged I’d start making demands. But if the unions can’t or won’t demand it, it should come under the umbrella of health care and perhaps some conscientious politician could write a bill enforcing the necessary expense on the delivery agencies.
No, I am not anti-union. When I became a teacher the first thing I asked at orientation, was how do I join the union? I later was elected to the Board of Directors for thar t union and remained so until I retired from teaching. I then went to work for a California County. Again, I immediately joined that union, was soon elected to the Board of Directors, and again re-elected until I retired. I was also part of the negotiating teams and the political action committees. I just recognize that as important as they are, unions have some flaws, they are only as good as the leadership.
Fay, thanks for this. Incidentally, the Labor Department's Bureau of Labor Statistics just reported that the job categories expected to expand the most over the next few years are warehouse and delivery.
Human or robots? Amazon has drone delivery in some places. Driverless vehicles.
Workers' comp covers injuries and illness connected to the job. I heard Surface Transportation Assistance Act cases. Surface Transportation Assistance Act (STAA)
49 U.S.C. §31105 Employee protections.
(a) Prohibitions. -
(1) A person may not discharge an employee, or discipline or discriminate against an employee regarding pay, terms, or privileges of employment, because -
(A)
(i) the employee, or another person at the employee's request, has filed a complaint or begun a proceeding related to a violation of a commercial motor vehicle safety or security regulation, standard, or order, or has testified or will testify in such a proceeding; or
(ii) the person perceives that the employee has filed or is about to file a complaint or has begun or is about to begin a proceeding related to a violation of a commercial motor vehicle safety or security regulation, standard, or order;
(B) the employee refuses to operate a vehicle because -
(i) the operation violates a regulation, standard, or order of the United States related to commercial motor vehicle safety, health, or security; or
(ii) the employee has a reasonable apprehension of serious injury to the employee or the public because of the vehicle's hazardous safety or security condition;
(C) the employee accurately reports hours on duty pursuant to chapter 315;
(D) the employee cooperates, or the person perceives that the employee is about to cooperate, with a safety or security investigation by the Secretary of Transportation, the Secretary of Homeland Security, or the National Transportation Safety Board; or
(E) the employee furnishes, or the person perceives that the employee is or is about to furnish, information to the Secretary of Transportation, the Secretary of Homeland Security, the National Transportation Safety Board, or any Federal, State, or local regulatory or law enforcement agency as to the facts relating to any accident or incident resulting in injury or death to an individual or damage to property occurring in connection with commercial motor vehicle transportation.
(2) Under paragraph (1)(B)(ii) of this subsection, an employee's apprehension of serious injury is reasonable only if a reasonable individual in the circumstances then confronting the employee would conclude that the hazardous safety or security condition establishes a real danger of accident, injury, or serious impairment to health. To qualify for protection, the employee must have sought from the employer, and been unable to obtain, correction of the hazardous safety or security condition.
Thank you for this, Daniel. I will copy and send to my Granddaughter with the admonition to present it at the next union meeting and to give a copy now to the shop steward. I am very much appreciative,
This is great to know Fay. I too am very pro-union. Unions can become corrupted to. You’re right about that but overwhelmingly they insure better treatment for employees.
All of these delivery people and hospital personnel etc sacrificed so much during Covid. I tipped 25% throughout Covid for as many service people as I could. My husband is working and I felt we should be as generous as we can while we have a decent income. It’s not much really but even those with a minimum wage of $15 can’t possibly get ahead with expenses today. I would like all tips to go away and all companies to support their employees with proper wages, not rely on us to subsidize at various rates.
We need to pay what people are worth and pay more for the products. Buy 2 quality shirts per year instead of 10 because they’re cheap and don’t last. We need to be re-trained!
You are certainly Speaking Reason. Problem is all of us are preaching to the choir. The people we need to reach are the top 1% and then all the trumpsters who believe their hero is promising them Utopia while he is giving the Hell.
Preaching to the choir indeed!
Beautifully written! Doris Austerberry
All men and women that do an honest day's work is essential to society. I remember when I was growing up, people would look down at the garbage collectors. Can you imagine what the cities would look like without them? Their work not only keeps the city clean, but it also keeps the people in the city healthy.
Absolutely and we have seen what that looks like. Remember when the garbage collectors went on strike in New York City? The pictures of the streets were appalling. And yes all worker's doing an honest day's work deserve more than minimum wage, they deserve a living wage. The only people we could possibly live without are the top 1%
Musk's image of a socially and environmentally conscious individual has faded. The chic nature of purchasing one of his EVs, for example, will dissipate before his treatment and condemnation of American workers, his enrollment in the Republican party and, should he acquire Twitter (which, I believe, he is trying to walk away from) and then allow former president Trump back, will repel those consumers. I, for one, will never buy a Tesla EV.
Musk is a con man extraordinaire. Did you know a Tesla has no manual adjustment for its side view mirrors? You have to go into the "app". That's probably when you will have that accident - the "deer that came out of nowhere" because you were working a touch screen.
Most of what Musk has promised he has not delivered. Great writing out there now about his arrogance and endless stream of BS. I gag when I see a Tesla now...
I already have a Tesla. I love it but didn’t know what an ass Musk was. Hopefully people won’t take it out on our cars. There are no left wing car companies here. They are mega businesses and support causes we don’t.
We have Tesla solar panels and batteries only because we didn’t know what an ass he is either. I would never buy them if I were starting now.
You can only know what you know at the moment. A lot of people own Tesla's and may well regret it and, like you, will look elsewhere for their purchases. I wonder if, just maybe, Musks fame is peaking? Finally, everything that is awful about him is finally being revealed. He is an extravagant, overblown plutocrat in everyone face.
I hope so. I’m sick of seeing his ugly face everywhere.
There are many, many outstanding car makers that now produce electric cars. I understand you bought your car before you knew Musk was a humanoid, he's absolutely awful for a thousand reasons...still, enjoy your car, maybe you'll make a different choice next time.
I’m a team player and have always paid every dime of taxes I owned. I love the idea of making America stronger. I ran a small business and by investing back into the business I created a bigger pie not just a bigger slice. Everyone benefited and yes it’s that simple. Honesty is the best policy. I respect everything you wrote and totally agree
A bit off topic, I started collecting SS as a survivor (my husband was 10 years older and always was paid better than me). At 70 I am semi retired and pay into social security, I view the money I have paid over my lifetime of working as contributing to the ‘pot’ and am happy to do so 😊
Unions are going to face enormous pushback. The Starbucks in Ithaca, NY, a very profitable store, closed up shop after employees voted to unionize. Amazon is learning how to stop unions from forming in its warehouses. With unregulated capitalism as a main goal and a key issue in the fights between parties winning the right of workers to unionize might be a prolonged and painful crusade, but one that it is worthwhile to undertake.
One hundred million followers on Twitter may not translate into 100 million votes but Americans do seem to like sheer audacity, ego, and wealth over dedicated public service these days. I keep hoping that Elon Musk will turn into a real boy one day.
I like Joe Biden as President more than I thought I would. However I am worried about his poll numbers and his age. Perhaps he should hint at who he might make his heir apparent just in case. Too bad America did not vote in the Congress he needed. He is unable to show how well his policies might work for middle-class Americans.
As for returning to the presidency the man who was raised to be a fascist, the man who made an oath to protect a constitution he had most likely never read, a man who should be on trial for sedition, it is a possibility that both shows how a democracy functions and how it can bring about its own demise. We are all fighting to prevent this from happening but without the support of our justice system we are still having trouble trying to win an advantage.
I will boycott any company that is a union buster. What you believe and what you actually do are related. If people choose greedheads and crooks for leaders, they deserve what they get.
Except we get them too.
Professor Reich is definitely making exactly the kinds of powerful statements that might sway more voters and there are many other voices too including MSNBC and Heather Cox Richardson. I have been speaking from the cheap seats for a decade too. But the media muddles the message and many Americans think a society is only about economics. Everyone wants to be at least a multimillionaire and being a worker bee no longer seems to be enough. Sometimes the left seems to be just speaking into the wilderness. What is so great about the prof is that he is trying to figure out how to get people to listen. Wish I knew the answer to that.
N.L. Brisson ; There is nothing more effective and durable to get people's attention than to point out what is in their best interests. If there is a better deal, smart people learn about it. The less smart keep voting for those who do not deliver and do everything against their best interests ; from clean air, water, untainted food, fairness in the economy and taxes, to justice.
That’s a valid point! Unfortunately a lot of smart people are also wealthy! There is no easy way to persuade them it’s in their best interest to pay more taxes! This was a great opportunity for the government to act. This is why I abhor Joe Manchin and Sinema!
Jean Chakour ; It is frustrating to see very wealthy people have so much power and be blind to the damage that wealth inequality, degradation of the environment and poor education can have ultimately on the quality of all of our lives. The common good will not improve with the downward spiral of injustice, with mass shootings (for profit!) and the selling of our country to the highest (not the best) bidders.
Totally agree! The problem is that those of us who are listening to Robert Reich already agree with him and getting "MAGA" or Musk followers to listen is practically impossible.
They would no more open their minds to him than I would to Tucker Carlson. I too wish I knew the answer.
Sadly, that is why we need to tell everyone we can about this forum, so they can learn something.
Adam Schiff would be a good choice although he probably couldn’t win.
I like Stacey Abrams and I like Andrew Yang, although I would have to know more about Andrew. Right now I am liking Senator Chris Murphy. Someone younger, hipper (although Biden can seem hip on occasion, and when Steven Colbert puts on those sunglasses he recalls the Biden of the Obama era), someone passionate but rational, authentic but also strategic.
perhaps most frightening (for me) is that the NYTimes -- a newspaper-of-record that i once read daily & admired & wished to write for -- is now in political turmoil so that few people understand what is happening there or where the newspaper's editors stand on the issues each week. where can the public turn to get consistently excellent independent journalism that is not aimed at satisfying a filthy-rich man's ego? there are few choices available.
Try the Guardian!
Great suggestion Professor Reich! I’ve relied upon The Guardian’s superb news coverage and insightful analyses for several years.
Unlike The New York Times, The Guardian’s fearless investigative reporters and editorial board members never hesitate to publish groundbreaking news and take important political stands, regardless of the risks and political repercussions that might occur.
I've been reading it for a few years now. Love it!
I've had a subscription to the NY Times for decades. Time to let it lapse.
i canceled my NYT subscription 3 months ago. the amount of hoop-jumping they required me to go through to cancel was unacceptable. for example, subscribing is a process that requires three (i think) clicks, but canceling my subscription required me to sit in a chat queue online for almost an hour! then, after i'd waited for a looong time and had quietly achieved maximum rage level, they wanted to know why i wanted to cancel, so i told them. (yes, i referred to my notes i'd made so my rage didn't blot out my reasons for cancelling. yes, i was polite.)
then, weirdly, the next day, they emailed a link to an online questionnaire that again, asked me why i was cancelling. but that online questionnaire never downloaded so i couldn't reiterate and underscore my outrage. that was frustrating because i was SO looking forward to making sure they got my message.
oh, and now, i get an email every day from them, telling me i can resubscribe for a "special price".
I think I use PayPal to pay for it. I can just cancel the payment. Done!
My subscription was cancelled immediately. I just used foul language to show how angry I was at their latest "reporting".
I truly loved reading a newspaper on Sundays, but gave them up about 5 years ago as they leaned too right for my tolerance.
Yikes, totally agree! I can't believe the NYT said that. Bari Weiss left that paper, maybe now I'll understand better why she did.
The fight as Ms Weiss states is between the young wokes and the 40+ liberals. That seems to define the democratic party today. The Guardian has been suggested as an alternative. The Guardian is a woke news outlet. https://www.nytimes.com/2020/07/14/business/media/bari-weiss-resignation-new-york-times.html
The Guardian is pretty good, I think, and BBC News, although neither is American. The New Yorker is also still top notch.
i wrote for The Guardian for 6.5 years, so i share your high opinion of its journalism! i'm currently enamoured by ByLine Times (it's British) which i have $upported for 1.5 years now, and am looking closely at Boston Review and will likely support it soon, too. I also love The Economist, but even as a digital-only subscription, it's expensive! you mentioned The New Yorker -- i absolutely love it -- and am awaiting an affordable digital-only subscription offering.
Those sound like great recommendations! I did find The Economist too far right for my taste though. The New Yorker is my desert island reading. It is expensive though.
i think it's good to read those whose (coherent, cogent, provocative, thoughtful) opinions differ from my own. it keeps my mind awake and, well, thinking. thus, The Economist. it makes my own arguments stronger (or so i like to believe) and it helps remind me that not ALL people who stand on the political right of where i stand (quite left, actually) are mindless knee-jerk demons.
the New Yorker does sometimes have online subscription specials ... i think they've got one now, or will soon. it's about that time of the year ...
I find it hard not to read opinions that are different from mine since they’re so pervasive. 😀 I used to be able to get a very cheap subscription to The New Yorker when my mother was a teacher. Even without that, though, it’s gone up astronomically. It’s worth it but it’s pretty steep.
those who disagree with me are often abusive lunatics. but not always. i want to know why people whose opinions differ from my own opinions (and experiences) think the way they do. if i understand them and where they are coming from, maybe they will understand me and my arguments? and if not, whatevs. either they're conspiracy theorist-lunatics or i've not made my arguments clearly enough.
Thank you for stating that a rich corporate person should be judged by the way he treats his workers. His uncaring attitude toward workplace safety, resulting in the ravages of COVID, is inexcusable.
Completely agree. Elon Musk is a selfish dick who wasted a lot of money and fuel shooting himself into space. He should have stayed there.
Being famous and rich has nothing whatsoever to do with the ability to govern wisely. People seem to have lost the ability to make the distinction. Voting for Oz is like voting for Elvis or the Beatles for Senate.
Long ago we chose not to have a monarchy so we didn’t have to put up with any particular genetic toss of the dice in charge of our lives.
We seem to be substituting wealth instead of
a royal gene pool as the determining factor for choosing leaders and getting the same dismal outcome as a result.
The advice from the NYT is ridiculous and speaks poorly of its editor. He needs to stay in his lane and check his hero worship at the door to his office.
GrAnnie! Perfect! Love that you mentioned a correlation between monarchy vs. wealth in determining leaders..I never thought of that but that is so true!!
That’s an excellent point. We had a revolution to get rid of a king and now people want another one? Yeesh.
I'm not sure a revolution is "wanted" but necessary..not in a violent way but in aggressive legislation and overturning Citizens United..
Oh, I’m not saying we should have a revolution. I’m saying that trying to install a strongman as president negates the one we had.
Branson did it, Bezos did it—Musk himself hasn’t flown yet
You are correct. My bad. I should have checked which billionaires were wasting money and fuel and started my rant with my assessment of Musk’s character.
Don't refer to them as Republican MAGA candidates - they are MAGGOT Republicans who only know how to destroy and cause decay in our society. Maybe someone fed up with Musk will shove an AR-15 up his ass soon. Am SO tired of those with big mouths, tiny dicks and no conscience always taking center stage.
You rock, Dee. I just love the way you express yourself.
Laurie Maldague
16 min ago
A hearty thumbs up to you, Michael Hutchinson! I used to teach chapters from The Wealth of Nations, a work that true capitalists should be familiar with before they destroy themselves (and everyone else, by the way!). On another note, it's hilarious to me that Dr. Oz has anyone in the Maga crowd supporting him. I don't know what his personal religious preference is, but for sure his name is Islamic in origin. "Mehmet," his first name, is a variation of "Mohammed." Of course, the Maga crowd is too ill-informed to know this!!! They'd rather concentrate on a "true" Muslim, like Barack Hussein Obama!
They support Saudi Arabia too.
Another superb and sobering commentary on the vanishing American democratic republic by brilliant Professor Reich.
It is shameful that The New York Times is so intimidated by Elon Musk’s immense wealth and huge number of Twitter fans that the Times has abandoned responsible journalism reporting standards. The New York Times barely mentioned Musk’s dismal record of mistreating Tesla employees and engaging in illegal labor practices. Case in point: In September 2019, California administrative judge Anita Tracy ruled that Tesla had violated U.S. labor laws 12 different ways.
The atrocious steady decline in the quality of US news reporting and the overall US media throughout the years is partly responsible for the continued “dumbing down” of the American electorate. Of course the failure of America’s public schools to educate students about their civic rights and privileges and the basic history of U.S. governmental branches is also responsible for US citizens’ abysmal ignorance about the US government and the US election system.
A citizenry that lacks critical analytical skills and knows nothing or very little about its country’s governmental structure and important election system is easily susceptible to the dangerous and crazy ideas of a seemingly personable lunatic like Dr. Mehmet Oz.
Musk is a self proclaimed narcissist with asbergers syndrome which sadly makes him very smart and has created great success materially. But he lacks the empathy and social conscience/social intelligence that is key to true leaders like Biden. Unfortunately material success has great currency over spiritual values today. To my young high school graduates and college grandchildren keep the prize of humility, compassion and empathy healthy in your passions and dreams.
Oz is a huckster and a hack. He should have his medical licenses revoked. If he gets elected, he and Rand Paul can discuss 'medicine' like bleedings.
Bravo for these comments! and shame on Andrew Ross Sorkin for peddling his rubbish. We need to live by the basic values of Joe Biden (and Robert Reich) and not those of egomaniac narcissists like Elon Musk.
I agree with your assessment of the dangers to Amercan democracy, Dr. Reich! But how do you convince the powerful in America not to "cut off" the "cancer" they think the rest of us are?
The problem with America runs deeper than your profound analysis! As it stems from what shapes and forms our understandings of what the problems are!
Sorkin and company just lost this reader. Really now. Cozy up to Elon Musk is a. not possible and b. could never be genuine. He is a manipulator only self interested with zero public good in mind. Biden is a grown up with principles no matter what the scorecard of popularity says. Content is what matters. Principled content.