Zandi: today's rich are more sensitive to tax increases

[Enrique]

http://blogs.wsj.com/wealth/2010/08/27/rich-are-more-sensitive-to-tax-increases-today-zandi-says/

(...)

In a presentation at a Democratic issues conference in California this month, Mr. Zandi–who has advised both Democrats and Republicans–said he supports a one-year extension on the Bush tax cuts for the wealthy, with the cuts phased out starting in 2012.

He says that in normal times, cutting taxes on the wealthy doesn’t stimulate the economy much, since the wealthy tend to save more.

But today is different.

“Normally, I would firmly agree that raising taxes on people who make over $250,000 a year would not make a meaningful difference in the way they spend money. But I worry that these aren’t normal times and that even this income group may be sensitive,” Zandi said.

(...)

[ladjf]

1. The rich may be more concerned that the lower income class never

have enough rather than their own desire to get more money. If so, it would be a control issue.

[Bozita]

2. And I'm sensitive to their sensitivity.

Gotta start putting those bundles of used clothing together for the aggrieved.

[HereSince1628]

3. IMO, the rich become more sensitive the less they are taxed

Once it becomee less expensive to be greedy greediness becomes an expansive strategic upperhand. As a matter of principle this must take place when the cost of greediness is less than 50%.

As Andrew Carnegie said, if the rich don't give it away, the rest will come and take it. We just need the rest to become unrestful.

[Curmudgeoness]

4. I respectfully disagree with Mr Zandi. The wealthy will spend

the same amount of money regardless of how much taxes they have to pay. There is an upper limit to this, but we are so far from that upper limit that it is not relevant to this discussion.

[blueworld]

5. Of course the working stiffs are sensitive about borderline poverty & using their homes...

and unemployment checks and their kids' college funds to subsidize the wars that give the rich government defense contracts.

...so they can make more money to invest in corporations that destroy people & the planet & foment more wars & pollute more...and attempt to manipulate elections...

We were sensitive whining babies when they-who-sit-on-the-Board-of-Directors sent most of our jobs overseas. We went out & retrained as Wal-Mart greeters & part-time janitors.

Maybe the rich can best face their sensitivity by retraining themselves to spend 10 or 20 percent less per month on food, toys & travel. It's a wrench, but their characters will be stronger. :sarcasm:

[aquart]

6. Today's rich are greedier and more entitled?

AND WHY THE FUCK SHOULD I EVER CONSIDER THE WISHES OF THE ETERNALLY OVER-PRIVILEGED?

Who is this amazing asshole?

[The Magistrate]

7. Easily Fixed, Sir: Relieve Them Of Their Money, And Their Worries Disappear As Well

Clearly, it is the humane thing to do....

[EC]

9. Well said,

Sir...:-)

[customerserviceguy]

11. Nice idea, in theory

but first we have to divest them of the congresscritters that they have bought and paid for. Ain't gonna happen this year, maybe we have a fresh chance in 2012.

[mike r]

8. Wall Street anointed Zandi to be “the de facto chief economist to Congress”

http://www.csmonitor.com/USA/Politics/monitor_breakfast/2010/0825/Economist-Zandi-John-Boehner-just-wrong-about-Obama-stimulus

Mr. Zandi was an advisor to John McCain’s presidential campaign. The Wall Street Journal has called him “the de facto chief economist to Congress.”

[WinkyDink]

10. Hello?? Operative word = "RICH."

[L0oniX]

12. O yea I really care about the sensitivity of the rich...

about as much as they are sensitive toward the plight of the poor and jobless. The poor give more than the rich and that says a lot.

[Enrique]

13. and I guess the corollary is that today's poor are hardier

today's poor can take it!