Phoenix44
Master of Arts
That's the classic "trickle down economics" argument: give more to the people at the top, and they will hire more people, pay higher wages, give better benefits. The problem is, it doesn't work that way. Since 1965, the compensation of CEOs of major corporations has skyrocketed, while the wages of the average workers has actually dropped. In 1965, the ratio of CEO salary to factory workers' wage was 44:1. Now it's about 200:1. CEOs don't share, and the wealth isn't "trickling down."
As for taxes, the guy making 20 million probably makes a good part of it as dividend, not wages. The tax on dividends is 15%, not the 35% we workers pay on our salaries. Basically, we're penalized for working hard; they're rewarded for investing. But most of us workers don't have that kind of money to invest where it would make a difference. That's a bonus for the ultra wealthy.
As for social security, it's the only way most of us can retire, AND it's guaranteed. I lost my job a couple of years ago, and had to sell some stock immediately. At that point in time, it was 35% LOWER than what I paid for it. But I needed the bucks, and took the hit. Good thing I didn't have to retire at that time. And BTW, it was a blue chip--no amount of investment "classes" would have "educated" me enough to avoid that.
As for taxes, the guy making 20 million probably makes a good part of it as dividend, not wages. The tax on dividends is 15%, not the 35% we workers pay on our salaries. Basically, we're penalized for working hard; they're rewarded for investing. But most of us workers don't have that kind of money to invest where it would make a difference. That's a bonus for the ultra wealthy.
As for social security, it's the only way most of us can retire, AND it's guaranteed. I lost my job a couple of years ago, and had to sell some stock immediately. At that point in time, it was 35% LOWER than what I paid for it. But I needed the bucks, and took the hit. Good thing I didn't have to retire at that time. And BTW, it was a blue chip--no amount of investment "classes" would have "educated" me enough to avoid that.