“And Jesus sat over against the treasury, and beheld how the people cast money into the treasury: and many that were rich cast in much. And there came a certain poor widow, and she threw in two mites, which make a farthing. And he called unto him his disciples, and saith unto them, Verily I say unto you, That this poor widow hath cast more in, than all they which have cast into the treasury: For all they did cast in of their abundance; but she of her want did cast in all that she had, even all her living.”
Mark 12:41-44
I wonder what Jesus would have said about the concept that reducing the marginal tax rate for the rich improves economic conditions for the poor?
This tax policy of the Reagan and Bush years was based on a supply-side economic theory popularized by Arthur Laffer. But that theory didn’t recommend the policy. The policy simply used the theory as an attempt to justify itself. Bruce Bartlett, a supply side advocate in the Reagan administration, wrote an interesting op ed piece in the NYTimes basically saying the same thing.
That column spurred a vigorous debate on economist Mark Thoma’s blog where both Bruce and Paul Krugman add their comments.
The problem is that there isn’t conclusive evidence that the trickle-down tax policy has accomplished anything other than making the rich richer. The Clinton economic boom came during a time of increasing marginal tax rates for high income individuals (started by “read my lips” Bush I). Though the current administration likes to point to reduced taxes as the cause for the current economic recovery, any potential effect was overwhelmed by the tidal wave of deficit dollars that the Federal government pumped into the economy.
At this point, however, what started out as economic theory has now become a basic philosophy of conservatives.
Conservatives argue that wealth is the rightful reward that individuals and corporations have earned for their hard work, talents, and the risks that they were willing to take. So ANY sort of progressive tax system (rates increase in proportion to disposable income) is a punishment to those who are the primary drivers of economic success. Further, conservatives believe that the unregulated free market will develop much better solutions to meet the needs of society than government.
Progressives argue that to whom much is given, much is expected. Those that are enjoying the benefits of living in this country should bear a larger portion of the burden than those that aren’t as successful because it isn’t a level playing field. Further, it is also the responsibility of government to make sure the every citizen has at least an opportunity to develop to their full potential. Finally, government should enforce a level of ethics, safety, and stewardship which prevents profit at the expense of the greater good.
To put in Biblical terms, conservatives seem to believe that wealth is God’s reward for the righteous and poverty is His punishment for those who are lazy, weak, or inferior. Progressives believe that we are all made in God’s image and likeness and that we serve God by giving of our abundance to the least fortunate of our brothers.
My friend Joe who is a rabid Liberal, Blind to the problems of the world said this ” Compassionate Conservatives Bless you before the evict you or fire you.” Joe though i real life helps Joe, he wants the government to help the rest.
As the owner of a construction Company that builds vacation homes in Harbor Springs every penny I make I believe is a reward for the great risks that I take. Not only monetary but physical. Last year I fell off a high ladder and destroyed my arm, No one comes to my aid, No government helps me like they help the poor and old. They have a safety net. I am, We are in reality on our own.
I do not appreciate the liberals wanting to grab any wealth I accrue for there wasteful projects of Corporate guilt. What I make, I want to Keep. I have no pension, I have no Health care. The government only exist to screw me.
There is literally no one there for me except Jesus.
And so because of Jesus I tithe, Most times more than 10% and through my church I designate a large portion of that Tithe to the hungry, and the poor. I also give huge amounts of my free time mentoring the least of these.
I literally believe that you give a man a fish he will throw it in the garbage, but teach him to fish he will feed the world.
Peace out
Rick
Rick,
Thanks for your post.
You sound more libertarian than anything else I can put my finger on.
I think that your commitment to charity is wonderful.
Unfortunately that alone isn’t going to improve the educational opportunities for those who live in our poorest neighborhoods. Education is the most reliable path out of poverty and we haven’t figured out yet how to educate those who need it most. That’s one thing that government can and should do.
Jeff