Restructuring the US Tax Code is always in vogue regardless of which party holds the power of the purse. Cutting taxes forms one of a few planks of the Republican party platform, and much of Democratic policy is based on raising government revenues by taxing the rich. Both parties claim their goals are to lower the national debt and decrease the financial burden on the majority of Americans. We at The Cabal see a path forward towards one of those goals by doing away with the other.

While we are counting the ways by which we can try to tax 1% of our population on 2% of their wealth, going through permutations of capital gains taxes, estate taxes, and higher marginal income tax brackets, we are staring at a solution to the government debt right in front of us, if only we would lower our sights: taxing the 99%.

Arguments for wealth taxes miss the boat: a wealthy person donating much of their wealth to charity would be taxed the same as one spending on a yacht. This doesn’t make intuitive sense! One of these people is contributing much more to society than the other, yet they would be taxed the same. Consumption taxes, to make spending on extravagances like fast cars, large TVs, loud speakers, and other favored toys less practical seem reasonable by comparison. These could then be aimed at favorite status symbols of the not-quite-as-wealthy, such as working cars, smaller TVs, and microwave ovens.

Futhermore, the top 50% of taxpayers paid 97% of tax revenue, while the bottom 50% of Americans paid a paltry 3% of the tax revenue.¹ Clearly this inequality is out of whack! We continue to plumb the well of the richest, taking as much as we can from them. Why are we trying to get water from a stone, squeezing the top for even more when they have given us so much, while the bottom skate by on a free ride?

Furthermore, these untapped masses are the same souls who want to increase government spending. Policies like universal healthcare, New Deals (Green or otherwise), and Great Societies are fundamentally only on the majority’s wishlist. The wealthy minority has healthcare covered, is very happy with the current deal, and would like to have more events with High Society rather than any Greater or Larger Society.

To end income inequality, we must tax the poor. Who else could pay for all of this?