The "progressive tea party" has been born. Inspired by the UK Uncut movement, the popular revolutions sweeping through North Africa, and articles in the Nation and Washington Post, activists in Mississippi, Chicago, New York, California, Maine, Oklahoma, North Carolina, Washington DC and elsewhere have started US Uncut to mobilize against corporate tax cheats who are costing America billions of dollars each year and forcing the government to propose deep cuts to vital services and pay freezes for hardworking families.
Economic historians will look back on this era as a time when policy-makers damaged Americans' welfare with ideologically driven, self-inflicted wounds.
I've written before about the crisis of inequality in the United States and about the quasi-religious abhorrence of "wealth redistribution" that causes many Americans to oppose tax increases, even on the ultra rich. The conviction that taxation is intrinsically evil has achieved a sadomasochistic fervor in conservative circles-producing the Tea Party, their Republican zombies, and increasingly terrifying failures of governance.
Happily, not all billionaires are content to hoard their money in silence. Earlier this week, Warren Buffett published an op-ed in the New York Times in which he criticized our current approach to raising revenue. As he has lamented many times before, he is taxed at a lower rate than his secretary is. Many conservatives pretend not to find this embarrassing.
Conservatives view taxation as a species of theft-and to raise taxes, on anyone for any reason, is simply to steal more. Conservatives also believe that people become rich by creating value for others. Once rich, they cannot help but create more value by investing their wealth and spawning new jobs in the process. We should not punish our best and brightest for their success, and stealing their money is a form of punishment.
Of course, this is just an economic cartoon. We don't have perfectly efficient markets, and many wealthy people don't create much in the way of value for others. In fact, as our recent financial crisis has shown, it is possible for a few people to become extraordinarily rich by wrecking the global economy.
Nevertheless, the basic argument often holds: Many people have amassed fortunes because they (or their parent's, parent's, parents) created value. Steve Jobs resurrected Apple Computer and has since produced one gorgeous product after another. It isn't an accident that millions of us are happy to give him our money.
But even in the ideal case, where obvious value has been created, how much wealth can one person be allowed to keep? A trillion doll
Would more accurate news coverage prompt Tea Party and Republican leaders to pay more attention to facts in their assertions about the economy? Maybe yes, maybe no. But, suggests Henry Banta, if the coverage continues at its present dismal level, we'll never find out.