Just as capitalism is part of our democracy, Andrew Cotto writes, so is fairness.
I heard it on the news while I was getting ready for work. Mitt Romney had just released his taxes from 2010. The numbers were being parsed from a myriad of angles. Whatever. I was busy (and late), and not overly interested, but a few facts from Romney’s tax report hit me pretty hard:
First, on each single day of 2010, Mitt Romney roughly made what I made over the entire year. That was somewhat sobering. Now, don’t get me wrong. This is not the “class envy” of which Mr. Romney speaks. I don’t envy his or anybody else’s wealth. I’m not of the ‘eat the rich’ mentality. This is America. Capitalism is a part of our freedom and part of our greatness. From my experiences with people of all social classes, there’s no correlation between character and income. People are people. And people are free to not only do what they chose for a living but also determine success by their own standards, and if success to them is defined by wealth, so be it. That’s not my choice. I’m a teacher. I have plenty of lucrative professional options, but I choose to be involved in education; therefore, I accept the long hours and the little pay. But, man, my annual teacher’s salary in one day? Something’s wrong with that.
The second fact bugged me even more. Mr. Year-a-Day-Income paid less than half the tax rate that I paid. The reason for this is that Mr. Romney’s income was generated through investments, and investments are taxed differently. I get the argument that the money used to invest had already been earned through other means that were subject to standard income taxes. But, come on. You don’t really work when you invest. You gamble, basically. In Romney’s case, he didn’t even pick the horses. He has a blind trust that does it for him (by the way, blind-trust-guy: nice work, and, call me). And this favorable tax situation doesn’t even factor in all the loopholes the wealthy are able to exploit; all the offshore nonsense that goes on in the Cayman Islands and other places where wealthy Americans hide their money. Now, there’s something seriously wrong with that.
What does this say about our country when the extremely wealthy get special treatment? Just as capitalism is part of our democracy, so is fairness. And there’s nothing fair about the affluent—and the corporations and hedge funds that sustain this affluence—playing by different rules. What does one do with all that money anyway? More investing, I guess. Imagine the difference it would make in America if loopholes were closed and tax rates on investments were equal to regular income. Consider directing these funds towards education and the difference it would make in the quality of students America produces (and the quality of life those students subsequently enjoy). Education as an engine of advancement could truly be available to all of our children. We could add resources and shrink class size. Enrichment programs and healthy meals and special services could be available in every district. And, we could attract more of our brightest and best towards careers that pay in accordance to the effort. Imagine that? I, in my (fair to say) incredibly important job as an educator, might make in a year what guys like Mitt Romney make in two days. That seems fair.
Great article Andrew. Some of the tax laws clearly need to be changed so Glove, I mean Mitt, and other wealthy investors, pay their fare share. However, America never has been fair has it, just ask the native americans,african americans & women, among others…..
It seems pretty fair to guys like Glove, I mean Mitt. With regard to fairness in America, at least we don’t chuck our rock bands in jail for offending those in power…rock on.
I am worried about this country’s excessive focus on fairness. Fairness is way too subjective a concept to leave it in the hands of bureaucrats. Are you noticing how the more government focuses on fairness, the more angry we are getting at one another? There is a correlation there. Unless we are all playing by the same rules, fairness ends up being in the eyes of the beholder. And depending on who the arbiter in power happens to be, your fairness gap is going to change who gets favored next, under the guise of fairness. What you may consider fair… Read more »
Sorry Andrew about the length of my last post. Typed it up than posted it, and said” Oh MY God”. I didn’t realize it was so long. I will try to keep any subsequent posts shorter. Got a little carried away.
Exactly how high do you think the gains rate should be? Can you give me a percentage? Also exactly what do you hope to accomplish by raising the Capital gains rates.?The amount of debt we have amassed is so biblical in proportion to any amount we can raise, that it is of no consequence in its effectiveness, except to perhaps make some people who feel it is unfair, feel better. But that is another fiery issue. I just have a real problem with tax policy changes that will be ineffective in the desired results, and an even bigger problem with… Read more »
No worries on the length there, NA. It did take me a while to read it though. We’ll have to see what happens. My feeling is that we are heading towards an economic system where there is more taxation on the wealthy and even more investment from said taxes put into schools, roads, technology, high speed rail, etc. I hear your points, especially with regard to cronyism and waste. I do believe you are conflating socialism with populism, but we’ll see, either way, how it works out…nice debating with you, as well.
Best Regards,
Andrew
Fair enough on the risk factor in investing, and not wanting to prohibit such capitalistic pursuits; I’d still argue that the rates are too low on investments and an adjustment in that amount wouldn’t stymie investing (what do money markets pay these days? or risk taking of any kind. What you didn’t address were the opportunities for avoiding taxes through loopholes/off shore arrangements, etc. Nor do you mention the write-offs for investment losses. The tax system favors the rich – bottom line. It needs to be changed, but not in a way that smacks of socialism (I love how conservatives… Read more »
Andrew, you start out by stating that you favor Capitalism and wealth, then proceed to fall into the liberal mantra about fairness, and spending. I know this site is mostly liberal, but it might be helpful to hear out a fiscal conservative. Please think hard about what you are saying, and understand the consequences of getting what you wish for. Investment capital by necessity, must be taxed at a lower rate, regardless of where the money comes from. Most ventures fail in comparison to the successes. How many winning stocks do we pick as opposed to losers? Failure rates can… Read more »
So I’ll finally reply to the actual article instead of just the comments: I think using the term ‘fairness’ is problematic. I think the term ‘equity’ or ‘equality’ would be better. In the case of the way taxes can be manipulated by the rich, I find the problem to be one of equity. There are a million loopholes that rich people can hire professionals to find and exploit. Meanwhile, Joe Shmoe is stuck exploiting only the loopholes he can figure out himself. Whether investment income should be taxed the same way as standard income tax is a separate, but related,… Read more »
There’s an interesting education blog, “joanne jacobs” which is on Instapundit’s blogroll. They’re mostly professional in the ed biz.
Their concern is that pub ed is trying to get everybody into college–one reason for the vast increase of remedial actions by the colleges themselves–and little or no voc ed.
The idea that kids are being trained for factories would surprise a lot of employers whose question is…where can I find some.
Resources are disproportionately directed toward big-city schools. NYC. Chicago. LAUSD. Results aren’t all that good.
Anyway, for ed topics, see Joanne Jacobs.
You were on track when you said that there is no correlation between character and income, and that people are free to define success on their own terms. (There’s an important correlary to that also, which you missed. We’re also free to feel like failures on our own terms too, and that includes Gov. Romney, who may indeed feel like a failure if he is not nominated. But I digress). You went off the rails with the idea that income should be compensation for work and the refex-idea that income should be taxed progressively. Both of those assumptions should be… Read more »
“Education as an engine of advancement could truly be available to all of our children. We could add resources and shrink class size… I, in my (fair to say) incredibly important job as an educator” Americans have a lot bad values I disagree with: consumerism, belief in education, belief in science, housing and health care, overvaluing of sex, belief in independence, egoism …. the list goes on. I don’t think your job is incredibly important. I think the education system SUCKS. I don’t believe in it and I am amazed at how much Americans believe in it. The founding fathers… Read more »
I am trying to figure out a way to ask a question without sounding like I’m attacking you, because I’m not. I am just very curious. Curious to the extreme, really…and so I can’t help but want to ask you what I’m about to ask you. I am so totally not trying to argue. Actually, regardless of your answer I won’t be replying except to say thank you for your answer. But, like they say, curiosity killed the cat. I was wondering two things: where are you from? And what is your own level of education? I would like to… Read more »
Dear people, have you not yet realized that the Republican and Democrat party are both arms of the Rulers – the Major corporations – and they are not going to help you at all unless it is by accident! Why are you relying on a group of power-elite mostly men to determine the well being of your children and family when it is our responsibility to do that? Why are you not seeing that we must come together as a people and do these things and help one another reach these goals. The schools are so poor the children are… Read more »
where are you from?
Canada. Although it might as well be America since Canada is pretty similar to America except that on some things we are a tiny bit smarter than you.
And what is your own level of education?
Two Master Degrees.
Thanks. Like I said, I wasn’t trying to be confrontational with those questions. I was just curious to see what your perspective was. So thank you for answering. 🙂
Now I am curious and I would like to ask a question. What were you expecting?
I honestly wasn’t expecting anything. You’re use of ‘our’ at the end of the post made me think you might be from the US, but your use of ‘Americans’ at the beginning suggested you were from outside the US. But then the ‘our’ could have just referred to the modern western system and not the US system in general…so that’s why I asked. As for the education question…I was just curious whether you were someone who had experienced the education system first hand and had found it lacking, or whether you were someone was making a judgement about it but… Read more »
Yes, the current system which was developed to train children to use the machinery in the industrial revolution still prepares them to work in factories and the really good teachers must fight the administration.
We have an archaic education system that we as parents can change. It was changing for the better many years ago when the Monarchy – oligarchy rulers, decided it was too threatening to have an educated populace so they dummied it down and feed it pennies.
Good teachers are needed and they become role models in our community along with good parents and good people.
One reason for taxing investments differently is that we consider investing in business to be a social good. However, as many investors will tell you, some of them quite poor, not all investments are winners. In order to get investors to put money into businesses which might fail, we increase the return on those which succeed by taxing them less. Say you end up making the equivalent of 5% on your investment in a business. If it’s taxed as ordinary savings, it may as well be ordinary savings, not the more useful investment. So to attract investment, we increase the… Read more »
Dear Andrew Cotto, I am a Hispanic scientist living on Long Island. I believe in Education and fairness. In 2009 I started a series of workshops to include undeserved minority High School students in publishable science research. On Jan 30 I was in Freeport high school to give an after-school seminar, which I hope will convince some of the students (90% Hispanic or African American) to consider innovation as a career goal. I devote 20 to 30 hours per week to entirely unpaid, volunteer work in education, motoring, and career advancement of minorities. I will vote Republican in November —… Read more »
I’m not trying to be contrary. I’m not trying to push my agenda. I find your position to be completely valid. – Just had to get that all out there from the outset. I think a lot of us have certain issues that we just care about more. Yours is boys education and so you look at both sides and determined that the Republicans are doing more for your issue, and you’re voting for them. (I’m not saying it’s that simple obviously. I’m sure there are other issues that you agree with the Republicans on. I’m just saying obviously that… Read more »
Here are the 100 things I don’t agree with the republican party about, in order of importance:
1) I think that high levels of income inequality (gini > 0.4) require government action. Republicans either like income inequality (a few) or think the market needs to take care of this issue (most).
2) I think the environment should be protected using market forces (tax policy). Republicans like market forces, but don’t care about the environment.
… (many other issues)
100) I believe that leagal abortion is the lesser of two evils, and should be discouraged but allowed. Republicans want abortion banned.
Okay right, yeah, that’s kind of what I’m saying. We all have certain issues that we prioritize. You have placed boys education at the top of your priorities and so you vote Republican. Because of what my top priority issue is, I will be voting Democrat. But when you say this: “I will vote Republican in November — and I cannot understand how anyone who believes in fairness, education, children’s welfare, or minority issues would do otherwise.” It sounds like you’re shutting out any opposing opinions. Not just opposing opinions about boys education (which I agree with you on, by… Read more »
Or wait…are you assuming in that comment that my issue is abortion and that’s why you pointed out it’s bottom of the list for you? My issue isn’t abortion. My Top Priority Most Important Issue is LGBT rights. It’s personal, and as such I care about it deeply. I try very hard not to be a one-issue-voter, but when it comes to that I pretty much am. So if (when) we have equal rights, then I’ll be reconsidering who I vote for. Until then, it’s pretty much sealed.
The best student I ever had was gay. I learned a lot of things from her, and I think LGBT issues are a moral imperative, similar to the Ritalin issue. The two issues are very similar actually, in that a vulnerable group is violated for the sake of electoral expediency. Both are issues of fundamental human dignity and equal protection under the law. You’ll get no argument from me. I understand now, and I wish you every success. Personally, I don’t think “fairness” is a good strategy in these cases. I think the word “fair” implies a sliding scale. Issues… Read more »
Yeah, I could go on on and on about LGBT issues…but I won’t because this really isn’t the article for that. 🙂 Yeah I agree with what you said about ‘fairness.’ I only actually used the term in quoting you. lol. Anyway, I personally wouldn’t use the terms ‘right’ and ‘wrong.’ (that’s more to do with the fact that I’m a moral relativist, but that’s another topic for another place). Mind you, I don’t really have any replacement terms because I do believe that they are human dignity issues and that there can’t be any half-way measures or compromises. Anyway,… Read more »
Mind you, if I were into conspiracies I’d say that the Democratic party is putting off doing anything for LGBT rights because they know there are a lot of LGBT people out there who might not support the party whole-heartedly after we get those rights. But I don’t really believe that.
“personality-killing drugs”
Amphetamines kill personality or the others?
I’m not sure whether he was referring to how they kill a person’s personality on a short-term basis. Like how that’s the point of something like Ritalin…to alter a child’s personality. Or maybe he was talking about the long-term affects of taking a drug – as in, how it can alter your brain chemistry permanently. And that doesn’t even take into account the ways powerful drugs affect children (versus adults). ADHD is over diagnosed, and it’s mostly over diagnosed in boys. Feeding a kid drugs so that they behave in a way that is more socially acceptable could have devastating… Read more »
Ah ok, misdiagnosis would be a major problem since the pills are to raise dopamine levels in those with ADHD/ADD so on a normal kid that will probably be too much. I found my anti depressants changed my personality a bit and made me numb, but my adhd meds (Dexamphetamine) just simply make me focus and no change to personality, ritalin also didn’t seem to change my personality as a kid either but that’s most likely because it’s a genuine case and not a case of being misdiagnosed. The drugs should be administered as part of therapy and under the… Read more »
Right, exactly. Now I don’t want to speak for Anthony (but apparently that’s what I’m doing), but I think that was kind of his point. That drugs are being thrown at kids (especially boys) as a way to make them more socially acceptable.
Has anyone considered offering those children who refuse to sit quietly stuffed into a tiny seat for hours an alternative setting? Perhaps the classroom as it is structured is not suited for all children, and rather than drug the children to meet the needs of the school, would it be possible for the school to find a better way to address the needs of those children? How does a child with ADD, ADHD prefer to learn? What is best for the child and how can we provide that? Maybe that child learns by doing or in short spurts, how can… Read more »
Andrew, nice article. I agree with our need for quality education, and free education at that, and equality within a system of fairness. The present system in our country is an oligarchy, a corporate ran and corporate owned government, whose only goal is to amass more power and money. Human needs are not factored into the financial statement. In order to serve the needs of human beings and to provide a great education to all of our children, and with that – great free health care including dental and vision – the goals of the people in this country must… Read more »