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Posts Tagged ‘Lincoln

Four GOP Presidential Icons on Tax Fairness and Values

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Three Republican Presidential Icons Who Advocated Tax Fairness

Bruce Bartlett, in the Fiscal Times, makes a really good argument for raising taxes on the wealthy, especially on those who receive capital gains, dividend, and inheritance tax breaks.

What is novel about Bartlett’s argument is that he uses four Republican Presidential icons to make his case.

At least through the 1980s, special tax breaks, such as those for dividends and capital gains, were viewed as unfair and unjustified. Indeed, Ronald Reagan was among those who decried the capital gains break because it meant that rich people, who get most of their income from capital, paid less taxes than the average working man. Consequently, as part of the Tax Reform Act of 1986, he agreed that income from capital gains and wages ought to be taxed at the same rate.

Reagan was building on long tradition by Republicans of demanding fairness in the tax code, which, among other things, meant making sure that capital and labor were treated equally. For example, in his first State of the Union Address in 1861, Abraham Lincoln said, “Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.”

In 1910, Theodore Roosevelt excoriated big corporations and wealthy men for rigging the system in their favor and not paying their fair share of taxes.

    The true friend of property, the true conservative, is he who insists that property shall be the servant and not the master of the commonwealth; who insists that the creature of man’s making shall be the servant and not the master of the man who made it. The citizens of the United States must effectively control the mighty commercial forces which they have themselves called into being….

    We grudge no man a fortune in civil life if it is honorably obtained and well used. It is not even enough that it should have gained without doing damage to the community. We should permit it to be gained only so long as the gaining represents benefit to the community. This, I know, implies a policy of a far more active governmental interference with social and economic conditions in this country than we have yet had, but I think we have got to face the fact that such an increase in governmental control is now necessary.

    No man should receive a dollar unless that dollar has been fairly earned. Every dollar received should represent a dollar’s worth of service rendered – not gambling in stocks, but service rendered. The really big fortune, the swollen fortune, by the mere fact of its size acquires qualities which differentiate it in kind as well as in degree from what is possessed by men of relatively small means. Therefore, I believe in a graduated income tax on big fortunes, and in another tax which is far more easily collected and far more effective – a graduated inheritance tax on big fortunes, properly safeguarded against evasion and increasing rapidly in amount with the size of the estate.

In 1954, Dwight Eisenhower said that everybody should pay their fair share and denounced unjustified tax cuts. “An unwise tax cutter, my fellow citizens, is no real friend of the taxpayer,” he said.

In short, the real debate on the Buffett rule is about fairness. Its particulars are less important – especially since it has no chance of passage at this time – than the debate that will accompany it. If Republicans are successful in conveying the message that it’s okay for rich people to pay less than working people then this will frame the forthcoming budget debate in a particular way….

If history proved any answers, the one answered by these four Republican presidents is that labor should be taxed at the same or lesser rate than capital gains and inheritance because labor is inherently worth more to society.

Something to think about as discussions on taxes and tax rates continue throughout the year.

Related:

Have the Rich Ever Paid a Fair Share of Taxes? (Part 1)

Have the Rich Ever Paid a Fair Share of Taxes? (Part 2)

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Written by Valerie Curl

April 20, 2012 at 10:35 AM

California forgotten

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Today I read through the latest edition of Sunset Magazine. This issue spotlights California and all the vacation destination locations. However, Sunset Magazine failed to note the towns in the Gold Country between Auburn and Tahoe.

The towns and communities above Auburn on the way to Truckee and Tahoe are well worth visiting. They are the heart of the Gold Country. Grass Valley, Nevada City and Colfax make up a triangle of High Sierra Gold Country communities. Each of these three towns began as mining towns and still prize their unique heritage.

Today, small businesses and high tech reign. Nevada City is home to award-winning leading companies in video/film technology as well as numerous 19th and early 20th Century-style B&Bs that give the visitor a taste of the old Victorian West without losing any of the modern conveniences of the 21st Century. Broad Street, Nevada City’s main street, is also home to some of the best restaurants north of San Francisco.

Grass Valley is much larger than Nevada City but still retains its unique heritage. The shops meander off the main Highway 49 exit and are definitely well worth stopping to visit. The restaurants, like those in Nevada City, specialize in fresh, local, organic produce, meats and artisan products. The numerous farmers in this area grow a wide variety of organic agricultural products which are marketed to the local restaurants and markets as well as to the public in the many farmers’ markets that serve the entire area.

Historic downtown Grass Valley hosts an historic Victorian hotel, the Holbrooke, that began operating in 1852 and still exudes the flavor of the gold mining era while serving modern California cuisine. A few miles east on Interstate 80 at State Highway 174 is Colfax. The current economy has not been as kind to Colfax as it has been to Grass Valley and Nevada City. Nevertheless, Colfax is worth visiting, especially if you’re a wine aficionado. The north counties have a surprisingly plentiful number of wineries that specialize in cold country wines, including a much hailed ice wine. And Colfax has the wine bar to taste them all.

There are a number of other small communities above Auburn, including Truckee and Lincoln, that Sunset Magazine failed to feature in its special insert. Even in the rest of the magazine, this area remains totally forgotten; yet, of all of the Sierra communities, these are the best of the best…and well worth visiting.

So, the next time you’re looking to take a trip, take a look at the towns north of Auburn. Oh, did I forget to mention that the Yuba River runs just a few miles from Nevada City? Or the many State parks and camping areas that dot this landscape? There’s fun for the whole family…or just a romantic getaway for the two of you…in Nevada and northern Placer counties just waiting for you.

Simon Schama on America

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Simon Schama, British art and literary critic who since 1990 has written and presented more than 30 documentaries as well as such best-sellers as THE POWER OF ART and the three-volume A HISTORY OF BRITAIN, spoke to Bill Moyers tonight on Bill Moyers Journal regarding American race relations and the promise of America.

Remarking on the historic election of Barack Obama and race in America, Schama said,

Benjamin Franklin, 1750, is terrified about the Germans in Pennsylvania. For Franklin, this was going to be an empire of the free but only if you’re maybe Scots, maybe Irish or English. He wrote, of course actually, he was aware of German journalism and so on. But he fought bitterly against the possibility that the Germans would overrun Pennsylvania. The notion is: there’s always the next wave. They’re not going to be ready or right or, in some peculiar biological way, compatible with democracy. The Irish weren’t going to be compatible. The Italians weren’t going to, but time takes its own. We were talking earlier about the amazing power of education. And, you know, that has the capacity somehow magically over the generations to make all these people just fine as Americans.

The jump which we’re seeing now, however, is what Chuck Alaman in Dearborn, Michigan, says at the end of that film, talks about with great pride, says, “I’m not an Arab American. I’m an American who happens to be a Muslim. I’m as American as apple pie.” And we are seeing, if Obama’s elected, the coloring of America. And you gave me an article to read in the “Atlantic Monthly” which was sort of about how white America is ending. And I thought, yes. But am I missing something here? But what exactly is the problem?

[…]

The race problem will not go away, not least because when times are tough actually those who are, in any case, economically disadvantaged, who have less schooling, are likely to be those who are most, alas, disposable in terms of the possibility of unemployment. So we’re going to expect I think trouble in the cities. Not I think trouble like 1960s.

But you asked, of course, the historical question. That is profound. America begins with an act – and you know, I’m deeply sentimental in my enthusiasm about the beginning of the American experiment. But it begins with an act of profound bad faith. Jefferson writes the Declaration of Independence in which liberty and equality are offered as the defining principles that make you American, while he is himself a slave owner. And then the Constitution is made at the moment in which African Americans are defined as three-fifths of a human in order to give the South enough clout to perpetuate slavery.

And, you know, Lincoln’s conversion coming up to the Civil War and then during the Civil War, from someone who found it morally loathsome but pragmatically had to be kept that way, to someone who, for whatever reasons, to win the war or not, was responsible for the Emancipation Proclamation, was an enormous change.

Lincoln, simply in the end, found it unbearable to hold up his head as an American and keep that act of bad faith going. But then we had a hundred years of Jim Crow and we had the civil rights movement. So this moment, it does seem to me to finally wipe clean that original sin, that profoundly repellent act of bad faith at the very beginning.

Bill Moyers continued with:

BILL MOYERS: But one reviewer says, “I was left feeling rather chilled by Schama’s take on the U.S. and its prospects. This may be the end of an empire as we knew it. And one can only wonder what it will mean for someone like Obama to preside,” and here’s where your historical convergence arrives on the scene, “to preside over its dismantling or its transformation.”

SIMON SCHAMA: That’s the challenge. That’s typically dark European view. But it’s the challenge. You can either be – it’s an extraordinary thing, this convergence of catastrophe and euphoria. Euphoria at the president we have and the heap of trouble we’re in. Either the heap of trouble will do him in and there’ll be a terrible dark backlash of disappointed expectations, or he’ll flip it. It won’t be easy. The flipping won’t happen overnight. But he can actually turn it to an extraordinary vindication of the American experiment. I rather hope he will.

BILL MOYERS: Have you learned something about the American character that surprised you, that enables you to project where we are going as a people, the soul of America?

SIMON SCHAMA: There are moments in our history, some of the ordeals of the Revolutionary War, the Civil War, that Americans were called on to sacrifice, during the New Deal and during the Second World War. We are indeed going to go through a kind of test of that order. But in each occasion really America has emerged with an essential characteristics altered, but intact.

BILL MOYERS: And that is?

SIMON SCHAMA: I think freedom, ingenuity, and justice.

BILL MOYERS: Those you think are the bedrock of American character?

SIMON SCHAMA: I do. I do. And as I say, I think actually equality and justice were a dark joke so long as racism remained embedded in the institutional fabric of the United States. That’s changed.

Shama’s interview with Bill Moyers is a prelude to a television series premiering on BBC America next week, during the inauguration, and this upcoming book, THE AMERICAN FUTURE: A HISTORY.

Written by Valerie Curl

January 17, 2009 at 2:14 PM

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