This applies to every country, but let’s consider the USA as I’ve some figures handy.
For example, the wealthiest 10% of Americans have now hoarded 68.3% of all US wealth, leaving the poorest 50% of Americans to share just 2.5% of US wealth. In fact, the wealthiest 1% have managed to hoard more wealth than the whole poorest 90% of Americans.
So, the wealthy clearly have a huge amount of wealth, but why should they share it with the rest of the American people when they’re the ones who earned the money? That’s not an unfair question for them to ask, so let’s consider some of the reasons why they should.
They have access to the most productive workforce in the world in terms of the monetary value they generate.
That workforce is so productive in part because of the amount of money spent by the government on education.
Further benefiting the businesses that generate their wealth, they disproportionately benefit from their use of public infrastructure, including roads, ports and airports, as well as making greater demands of energy systems that enjoy substantial government subsidies.
Their businesses also enjoy tariff free access to the world’s richest consumer market, assuming they employ American workers, rather than cheaper labor overseas.
And being American based businesses, they receive the preferential trading terms negotiated by the US government, as a result of being part of the world’s biggest economy.
They benefit from the social stability that emanates from a strong government, making it easier to launch and run the businesses that generate their wealth.
That extends to protections that both wealthy individuals and their businesses enjoy under the protection of the rule of law, ensuring that their assets enjoy full protection from others, including enforceable business contracts and the defense of intellectual property. Arguably, the wealthy actually enjoy even greater legal protections than most Americans and they certainly tend to receive relatively lighter punishments.
They and their businesses enjoy access to a stable and well regulated financial system that ensures their investments are protected. They benefit much more than poorer Americans from these protections, particularly when the government steps in during times of financial stress to protect individuals and businesses.
Beyond the protection of the law within US borders and via international agreements, they further benefit from the defense of the military. A military that almost exclusively relies on the contributions and sacrifices of the poorest members of American society. It’s never those with the most to lose fighting to defend the US.
The taxes and sacrifices of previous generations of Americans created the society that has allowed them to generate and/or maintain their wealth. In return, their taxes will help ensure that future generations benefit from the same head start they enjoyed.
Thanks to the reasons listed above, the wealthiest 10% of Americans have hoarded wealth of $118.71 trillion. That’s more than three times the US national debt of $39 trillion. Considering all the benefits they enjoy, why isn’t it fair to make them pay off the full debt. They would still be hugely wealthy and the US would save more that $1 trillion each year that could be used to benefit all Americans.
The wealthy don’t think they should pay taxes, but is that fair?
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