Forum Post: Wealth redistribution is already the norm. Somehow we ended up with a system that steals from the poor and gives to the rich. How do we fix it? Find out here.
Posted 5 years ago on Oct. 25, 2011, 7:57 p.m. EST by LobbyDemocracy
This content is user submitted and not an official statement
I have heard many arguments against interfering with the way that the market works as I have sifted through this forum. I think it is important to understand that we already have many features of our system that interfere with the natural market distribution of resources. To claim that we can't change the system for the sake of market purity is outrageous, because we do not have and will never have market purity.
The moment a tax system is put in place it effects the way that the market distributes income. Whatever system you put in place helps determine winners and losers. There is no such thing as an unbiased tax system. Every system is built around a set of assumptions. When it comes to the tax code there are two different concerns that should be addressed as the code is built: is the system efficient and is it fair.
I will focus on the efficiency of they system and leave the fairness of the system for another time. I will propose a means to creating a more efficient, equitable tax code.
Our system fails us on the efficiency side, because it does not accurately reflect the driving force of our economy. 70% of our economy is based on consumer spending. Yet, our current tax system favors the top 1%. The top 1% spends a smaller portion of their income on expenditure than any other group. By favoring this 1% we are siphoning money out of the driving force of the economy. Henry Ford wisely recognized "It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages." As we take the money out of the customers hands the employers lose the ability to pay there workers. This causes the employers to lay off workers, contributing to the downward cycle. To stop this cycle, we must understand that keeping money in the hands of the 99% not only benefits the 99%, but also the 1%.
This means that as opposed to the "job creator" theory and trickle down economics, we should be looking at a trickle up system. It is important to recognize here that I am not planning on any drastic market interventions or seizing of wealth. I am simply talking about structuring the tax system in a way that will help drive the system forward. So long as we are running a market based on free market principles there will always be a tendency for money to collect at the top. It is the reward of success, and the drive towards that success helps push the economy forward. In the current system, however, we are speeding that tendency and causing the money to rush to the top of the food chain.
So why did we structure the tax code this way and why are we OK with it? The answer to this question lies in the realm of politics. Capitol Hill has been overrun by lobbying money. Last year alone $3.5 billion dollars was spent lobbying our government. The money represents the interests of the top 1% and creates legislation that favors that 1%. Big business and special interests have the ear of our leaders, and they are listening.
It is time that we changed this system and let the voice of the majority once again be heard on Capitol Hill. I am founding a lobbying organization to achieve that goal. We will be polling our membership to determine what issues are important to them. Any issue that receives 65% support or opposition, we will take to our elected leaders and let them know where their constituents stand.
Many people have argued to me that there is no way that we can overpower the lobbyists that are currently in place, but I beg to differ. There is one thing on Capitol Hill that is more important to our elected leaders than money, and it is something that the 99% controls. What they treasure most is votes. The money the politicians beg, borrow, and plead for is there to buy votes. If we can pull together into a large enough voting block, that voting block will have more power than all of the money on Capitol Hill. We will be cutting out the middle man and supplying our elected leaders with the currency they truly treasure.
If you are interested, please visit www.lobbydemocracy.com to learn more. If you like what you see or have questions please let us know here so that we can rise to the top of the list and be seen by others.