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Tax

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“It is mathematically impossible to invest enough in our economy and our country to sustain the middle class (our customers) without taxing the top 1 percent at reasonable levels again” – Venture Capitalist Nick Hanaeur

Hanauer has put his name on a growing list of 1 percenters who are boldly stating what most economists already recognize.

Writing on Bloomberg’s website, Hanauer observed:

We’ve had it backward for the last 30 years. Rich businesspeople like me don’t create jobs. Middle-class consumers do, and when they thrive, U.S. businesses grow and profit. That’s why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.

A new post on ThinkProgress.org reports that even someone in the belly of the beast, Morgan Stanley Chief Financial Officer Ruth Porat, has awakened to this reality:

“The wealthiest can afford to pay more in taxes. That’s a part of the deal. That makes sense. I don’t know anyone that doesn’t agree with that,” Porat said. “The wealth disparity between the lowest and the highest continues to expand, and that’s inappropriate.” “We cannot cut our way to greatness,” she added.

I hope this is the dawning of a new capitalist idea.

We have lived too long in the shadow of timid CEOs and their sycophants who look no further than the next quarter.

In order for capitalism to be sustainable, a robust middle class must exist.

The article goes on to note that one of the major factors driving income inequality is the outrageous compensation and bonuses given to the top tier of huge corporations.

Instituting practices that reward performance and sustainability would go a long way toward creating a healthy economy.

-Chris

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December 6, 2011 - Posted by | Deficit, Economics, Politics, Tax Debate, Unemployment, Wall Street | , , , , , , ,

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