America’s Most Coddled
Senator Charles Schumer got partway off the fence this week on the issue of whether the most highly paid Americans — mainly partners at hedge funds and private equity firms — should continue to enjoy a super-low tax rate. Currently, at a typical hedge fund or private equity firm, partners pay a flat tax of 15 percent on most of their mega-earnings. Salaried employees and wage earners — the majority of the work force — face income tax rates as high as 35 percent.
The super-rich are approaching their Marie Antoinette moment in the ‘let them eat cake’ department, even though that particular quote is in error. Anyone blessed to make multi-millions annually should be eager to pay for the care and feeding of the nation that benefitted their economic climb. Currently, Warren Buffet heads the small (but growing) list of objectors.
As metaphor to the tragic bridge collapse in Minneapolis, we will fix this structural defect in the taxing of the wealthy or face a wreckage of the relationship between those whose labors depend upon one another.