The Rich Are Different From You and Me

F. Scott Fitzgerald's famous line, "The rich are different from you and me," was met by Hemingway's rejoinder, "Yes, they have more money." Today, the rejoinder could be changed to say, "Yes, they don't pay taxes."

Included in an LA Times article on Rodeo Drive, is the following:

An Internal Revenue Service report obtained by the Wall Street Journal in March showed that the 400 richest Americans -- those with incomes of at least $100 million -- controlled 1.15% of the nation's wealth as of 2005, or twice the amount of a decade earlier.

Thanks to President Bush's tax cuts, though, the average income tax rate for the mega-wealthy fell to 18% from nearly 30% over the same period.

The Wall Street Journal often complains that the rich pay too much in taxes, that a small number of taxpayers pay a high percentage of the total taxes collected. However, the reason is that those taxpayers receive a high percentage of all the income received in America, and for the amount of income they receive, their taxes are relatively low. Although the dates don't exactly match up, one study says that in 2005 the top 1% of taxpayers received 21.8% of all income. A Treasury press release says that in 2002 the top 1% paid 33.7% of all taxes. This doesn't seem disproportionately high.

Much of their income is taxed at a low rate, such as the taxes on dividends and other "investments." One argument for low taxes on dividends is that the company paying the dividend has already paid taxes on its income. But an article in the NYT recently said that two-thirds of businesses do not pay income tax.

Russia 1, US 0

Surprisingly (given its conservative bias), the Wall Street Journal says that Russia "gave the U.S. a bloody nose" in the Georgia dust up. But if Bush got a bloody nose, then John McCain got a broken nose and lost a few teeth as the most conspicuous friend and promoter of Georgia, as I noted previously.

Of course, Condi Rice didn't come out too well either. The NYT reports that in a recent visit to Georgia, Condi's public stance was one of "defiant support for Georgia in the face of Russian pressure," while she claims that privately she warned Saakashvili "not to get into a military conflict with Russia that Georgia could not win." Maybe Condi should not have been so shy about publicly warning Georgia not to get into a fight with Russia.

Did McCain Start the Russia-Georgia War?

According to the Washington Post, John McCain's principal foreign affairs adviser, Randy Scheuneman, is a lobbyist for the country of Georgia. On the one hand, McCain is well briefed on Georgia, on the other, has he been too hawkish in encouraging Georgia to tweak Russia's nose? Thanks to his lobbyist/adviser, he has talked to the Saakashvili numerous times, but what has he told him? The neocon Republicans hate Russia and want to bring it down. Did they see Georgia as a tool in their attempt to destroy Russia? Will Georgia be destroyed as a result? Is John McCain the leader of the use-Georgia-to-destroy-Russia bloc of neocon Republicans?

Republicans Hate America

CNN reports that the US is using contractors in Iraq more than any previous administration in any previous war. It's because Republicans don't like the government, and they love to give money to their political contributors, like Halliburton. But it you hate the government, you hate the basis on which the country was founded. Republicans would prefer that their wars be fought by Blackwater, paying over $100,000 per combatant, rather than by the US military, who would be $30,000-$50,000 per combatant And the people getting $100,000+ would be firmly Republican.

Republicans will fight for money, but not for the flag. When a country relies on mercenaries to defend itself, it's on shaky ground.