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Essay: New Ordeal

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/* Wealth Tax Act of 1935 */
Other durable goods were not easily obtainable by civilians during the conflict. Gibson refrigerator for example, still produced refrigerators, but only for the government. Part of their factory was dedicated to the production of gliders for carrying troops in the D-Day invasion of June, 1944.
==Wealth Tax Act of 1935==
The [[New Deal]] was able to expropriate the upper income brackets even before [[World War II]]. In 1929, total aggregate Personal Income was estimated at $80.6 billion and the tax brackets making above $50,000 retained $5.2 billion, after income and surtax; in 1936, when total Personal Income was estimated at $64.2 billion, not quite $1.2 billion was retained by "the Rich". Taxable income above $100,000 was wholly absorbed by the government when account is made of the inheritance tax. Economist and former Austrian Finance Minister [[Joseph Schumpeter]] described it in these terms:
:"''a tremendous transfer of wealth has actually been effected, a transfer that quantitatively is comparable with that effected by [[Lenin]]. The present distribution of disposable incomes compares well with the one actually prevailing in Russia.''<ref>Schumperter continues: "the Russian act of April 4, 1940, concerning the income tax, reveals that incomes as low as 1.812 rubles per year were subject to it. It also reveals the existence of incomes of over 300,000 rubles which were then taxed at the rate of 50 per cent. Now, let us neglect the tax on the lowest incomes entirely and put the modal income in the 1,812–2,400 ruble group at 2,000 rubles; further, let us put the modal retained income in the highest group at no higher than 150,000 rubles (though those 300,000 rubles before tax were a lower limit). Then we discover that the higher of these modes was 75 times the lower one. Even if we put, for 1940, the American equivalent (not of course in purchasing power, but in the sense of equivalent position in the income scale) of the lower mode at as low as $1,000, we shall evidently not find much in the United States income distribution of retained incomes (even apart from the reductions specifically motivated by the requirements of war finance) to support, in the light of the Russian paradigma, the current phrases about atrocious inequalities, “concentration of power” as measured by concentration of income, and the like. The evidence presented in the well-known book by Bienstock, Schwarz and Yugov on ''Industrial Management'' in [[Russia]] tends to support this view. Many other details point in the same direction, for instance, the fact that those ranges of the professions who could formerly but cannot now afford domestic servants in the United States, do enjoy this privilege—worth a ton of electrical household gadgets—in Russia. All this still fails to take account of advantages that do not pass through income accounts. The power and social position—which is one of the main reasons for valuing a high income—of the industrial manager, especially if leader of the local unit of the [[Bolshevik]] party, is far and away above that of an American industrialist. Interesting phenomenon—this Lag of Ideas! Many well-meaning people in this country now profess horror or indignation at social inequalities which did exist fifty years ago, but no longer do. Things change, slogans remain."</ref>
===Class warfare===
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