Taxes, Grand Fortune, and Gloria Vanderbilt

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

Hundreds of advocates for a more equitable economy will be gathering in Washington, D.C. this coming Tuesday for an all-day conference on “Taxing the (Very) Rich.” Hundreds more will be streaming online and watching as conference speakers explore a variety of bold new proposals, everything from an annual tax on wealth to tax penalties on corporations that pay their top execs unconscionably more than their workers.

Many of these same proposals will then soon likely surface again almost immediately, at next week’s first set of national debates for the Democratic Party’s White House hopefuls. Most of the 20 debaters figure to endorse one — or more — of the ideas that get Tuesday’s “Taxing the (Very) Rich” spotlight.

In other words, we’re shaping up to have a really good week for tax justice. We haven’t had a political climate this open to new initiatives for taxing the super rich since FDR sat in the White House.

All this political momentum, not surprisingly, has America’s flacks for grand fortune more than a little bit worried. They thought they had us convinced that upping taxes on the rich would wreck the economy and penalize “success.” But Americans aren’t buying what the flacks are selling. Our richest owe their “success,” many more of us now understand, to an economy they’ve spent the last four decades rigging.

Serenades to the “successful” are clearly not winning over a deeply skeptical — and cynical — American public. So the flacks are switching gears. They’re doubling down on the cynicism all around us. They’re arguing that taxing the super rich will always be a fool’s errand — because the rich and their armies of lawyers and accountants will always be able to stay a step ahead of Uncle Sam.

So why bother trying to tax the rich, the argument goes, when these deepest of pockets can simply evade whatever taxes Congress imposes? Just accept reality, the flacks implore us. The rich will always stay rich.

That happens not to be true. History shows we can make real progress against grand concentrations of private wealth. We did just that in the mid-20th century, a time when Americans making more than $400,000 a year faced top income tax rates over 90 percent and heirs to grand fortunes had to watch estate tax rates as high as 77 percent carve multiple millions off their inheritances.

Sam Pizzigati edits Too Much, the online weekly on excess and inequality. He is an associate fellow at the Institute for Policy Studies in Washington, D.C. Last year, he played an active role on the team that generated The Nation magazine special issue on extreme inequality. That issue recently won the 2009 Hillman Prize for magazine journalism. Pizzigati’s latest book, Greed and Good: Understanding and Overcoming the Inequality that Limits Our Lives (Apex Press, 2004), won an “outstanding title” of the year ranking from the American Library Association’s Choice book review journal.

Posted In: Allied Approaches

Union Matters

He Gets the Bucks, We Get All the Deadly Bangs

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

National Rifle Association chief Wayne LaPierre has had better weeks. First came the horrific early August slaughters in California, Texas, and Ohio that left dozens dead, murders that elevated public pressure on the NRA’s hardline against even the mildest of moves against gun violence. Then came revelations that LaPierre — whose labors on behalf of the nonprofit NRA have made him a millionaire many times over — last year planned to have his gun lobby group bankroll a 10,000-square-foot luxury manse near Dallas for his personal use. In response, LaPierre had his flacks charge that the NRA’s former ad agency had done the scheming to buy the mansion. The ad agency called that assertion “patently false” and related that LaPierre had sought the agency’s involvement in the scheme, a request the agency rejected. The mansion scandal, notes the Washington Post, comes as the NRA is already “contending with the fallout from allegations of lavish spending by top executives.”

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Corruption Coordinates

Corruption Coordinates