Response to idle rich discussion on NS Island board

Bill Gates has paid billions in taxes precisely because he did the work and took the risk. Bill Gates is the perfect example of the type of individual most screwed by the current system. The government asks nothing of existing wealth,it takes everything from wealth that is being built. Old wealth would apply to some future great grandchild of Bill Gates. Let's pretend that Bill Gates is not giving away all of his money to the Bill and Linda Gates foundation. Under those circumstances he would have a great grandson in 2060 who would do nothing with his life but sit around a pool sipping frozen drinks and chasing women. The great grandson would be extremely rich but would never pay taxes throughout his life because he would never have a job or create wealth.

Wayne, study the year 1913. The great entreprenuers of the 1880s were dying off. Their children and grandchildren were getting nervous about the children of all the European immigrants who came into the US in the 19th century to do the labor of the industrial revolution. The old rich were paying more and more into philanthropy to avoid problems with the children of the immigrants. They knew that they could not sustain a social welfare safety net forever (because they were slackers) and not building new wealth. They feared communist influence from thinkers like Lenin and Trotsky in Russia and the socialist influences in Europe. Plus, they were simply getting tired of being burdened by philanthropy.

Meanwhile, the rich brats were paying more and more in salaries to their plant managers, property managers and financial managers. So they hatched a plan. Instead of taxes being paid on wealth (the defacto result of philanthropy), why not have taxes on income? This way, the hard workers who were the managers of the wealth, the factories, the banks, etc. would have to pay all the costs of the masses' socialwelfare system needed for all the huddled masses that were still here after building all the cities and factories.

So what about new entreprenuers? Well,the rich kids could kill two birds with one stone. The new income tax would also be used to tax the growth of new companies and, thereby, prevent new rich from emerging to compete with the old rich! Furthermore, the old rich wanted to divide the underclasses. They knew an income tax would make the productive members of the middle class resent those that they perceived as being non-productive. The lower middle class thinks the upper middle class is greedy for not wanting to pay more taxes. The upper middle class feel weighed down by the lower middle class. Meanwhile, everyone has forgotten about the old rich because they are not really involved in the income tax system since they do not have jobs.The income tax is the result of a diabolical scheme by the idle rich.Of course, the other scheme by the idle rich was the creation of the Federal Reserve. This allowed them to make even more money without working - by charging interest on money that the US is printing and by being able to manipulate recessionary and inflationary waves. The rich knew they were in control of the Fed and could control when inflation occurred and when recessions occur. So all they have to do is buy depressed property during recessions and sell these properties during inflationary bubbles.

The country was actually destroyed between 1913 and 1917 but the US economy was so strong that it has taken until now for the problems to really be felt fully. Ironically, the swine flu of 1918 killed off many of the immigrants that constituted the huddled masses; as did WW1 and WW2. Also, the Great Depression forced many of the huddled masses into lifestyles that required less help - like dependence on extended families - but through all the trials and tribulations the idle rich have simply kept their heads low. I agree with Wayne that we need to do all we can to protect and defend the rights of the productive to create wealth. We just need to remember that wealth is not always the result of productivity.