April 20, 2005

"Responsible" Wealth

I discovered a website today called Responsible Wealth. The mission of Responsible Wealth is:

We are leaders in business, community, government, philanthropy, academia and finance. We are among the wealthiest 5% of Americans, the primary beneficiaries of the robust growth of the American economy. We are united by our common concern that despite a booming economy, many are not sharing in the prosperity.

Wow, that sounds great! Responsible wealthy people are concerned with the rest of us poor slobs and want us to do better. How do they plan to achieve such wonders? Will they be giving away money right and left? Will they stop living in their mansions, start driving economy cars and shopping at K-Mart, and take their vacations in the Poconos rather than go skiing in Switzerland?

No...they plan to do it the old fashioned way...by raising taxes on the rich.

That sounds good too...kind of. If you buy into the hype these responsible wealthy people are promoting, you believe that

Tax cuts for the wealthy are hurting our country. You can help stop them.

Tax cuts are draining our nation of capacity to preserve vital services, invest in research and infrastructure, build a strong and sustainable economy, and assure fairness and opportunity. Now, more than ever, itÕs crucial for wealthy people to take a public stand against them.

Of course, they don't mention that the more corporate America is taxed, the less they want to spend in expanding business...which means hiring more workers and being able to pay them more. Statistics show that the American economy boomed during the Kennedy and Reagan years as a result of tax reform.

Not to mention, the more Americans are taxed, the faster Congress will find ways to spend the money. Our founding fathers originally had a very limited government in mind when they set about organizing our federal government. David Limbaugh said,

Under the Articles of Confederation the federal government had no power to tax and no power to raise an army. Congress could not force states or individuals to comply with its decisions.

We've come a long way, baby.

It seems strange that some of these responsible wealthy people are for higher taxes. It makes me wonder why? And then it comes to me...why should they worry about higher taxes when they can afford to hire accountants whose job it is to find as many loopholes and tax shelters they can? That means many of these wealthy people end up paying less taxes than the average middle class citizen. Teresa Heinz (conveniently Kerry during the last presidential campaign) illustrated this point nicely when she released her 2003 tax return. Her overall income was $5.07 million, but she was able to shelter $2.78 million from being taxed. And her husband was promising higher taxes for the rich if he was elected! Wouldn't you think she'd be first in line to pay her "fair share" of taxes? And what about all of those other responsible wealthy people? Do you think they'll share their tax returns so we can see how much they enjoy paying taxes?

What about charity, you ask? According to the American Association of Fundraising Counsel, Americans gave $241 billion in charitable contributions in 2003, a jump of 2.8 percent since 2000. I wouldn't blame you for thinking that's a good thing. But it's not. Here's why, according to William Gates, Sr. (father of software billionaire Bill Gates):

Let's be honest: People give money to charity for many reasons -- altruism, a belief in a particular cause. But when they know that they are directing that money to a cause they believe in rather than to the IRS, they give more to charity.

In other words, people can't be trusted to give money on their own. They might choose to give to a cause that people like Gates, Sr. doesn't believe in. Only the government can be trusted to "distribute wealth" fairly and with equality.

That's the point. These people aren't interested in so-called fairness...they're looking for a socialist "utopia," which is one step away from communism. Socialism isn't working in Europe. Look at the unemployment rates in Germany and France! Communism didn't work in the former Soviet Union, it's not working in Cuba, it's not working in North Korea, and it is at odds with the growing capitalism in China. For example, everyday Cubans live in poverty while their leader Fidel Castro lives in opulence (something he denies, of course).

No matter what the system, someone is going to end up on top. I'd rather have a capitalist system where I have the opportunity to make something of myself, no matter what the pitfalls, than live in a country where everyone is supposedly "equal," but some are more equal than others because they either know the right people or were in the right place at the right time. And let me tell you that the responsible wealthy people who are a part of the Responsible Wealth movement are going to be among those who want to call all of the shots. Fair? Only if you like long lines to buy toilet paper.

Those who expand their business empires, thus creating more jobs and investing in their communities are the only responsible wealthy people I can think of. It's time we all realize it.

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