Katrina vanden Heuvel: Among the wealthy, a new voice for fiscal sacrifice

[babylonsister]

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/30/AR2010113002961.html

Among the wealthy, a new voice for fiscal sacrifice

By Katrina vanden Heuvel
Tuesday, November 30, 2010


President Obama's discussion Tuesday with leaders of both parties about the expiring Bush tax cuts comes at a time when a growing chorus of progressives and other reasonable-minded Americans have been ramping up pressure on the White House to allow the cuts for millionaires to end - as intended - at the end of the year. Last week that chorus was joined by a group of unlikely, albeit welcome new singers: the millionaires themselves.

In a November letter to President Obama, a group calling itself Patriotic Millionaires for Fiscal Strength argued that the wealthiest Americans do not need, and should not be given, an extension on tax cuts that have done next to nothing to improve broad economic prosperity. "We are writing to urge you to stand firm against those who would put politics ahead of their country," the letter's authors write. "Now, during our nation's moment of need, we are eager to do our fair share."

Signers include a number of early Google executives as well as leaders of companies such as Ben and Jerry's, Men's Wearhouse and Princeton Review. They aren't the first group of ultra-wealthy people to signal discomfort with senseless fiscal policy designed to benefit the top 2 percent. A group of 700 business leaders and individuals known as Responsible Wealth have called the Bush tax cuts "irresponsible" and "downright inexcusable." Bill Gates Sr. and Warren Buffet, of course, have also called for a change in priorities.

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It isn't regulations and tax rates that are stifling business. It's a lack of demand, spurred by a lack of investment by business, caused by an economic crisis that was, in turn, the result of the kind of reckless deregulation these same individuals and businesses spent the last several decades fighting for.

Millionaires aren't better off over the long run with the continuation of the Bush tax cuts. They'd be better off if the $700 billion it will take to pay for those cuts was instead put into new stimulative efforts - the kind of efforts that would spur real economic growth. Those initiatives would create jobs and new prosperity not just for the wealthy, but for everyone. They would drive demand.

When business is doing well, millionaires will be doing well too. In the meantime, their selfishness hurts everyone, including themselves. Will they ever snap out of it and see the new reality as it presents itself in front of them? Only time - and perhaps the negotiations that began today - will tell. In the meantime, this group of Patriotic Millionaires gives us hope. They give us reason to believe that not everyone at the top believes that it's only the top that matters.

[Tippy]

1. K&R.....For real Americans......

[Skink]

2. This shows how out of touch the republicans actually are.

[BonnieJW]

3. Corporations, businesses don't need more money!

They all need CUSTOMERS. They will never have customers as long as there is no middle class. Who is going to buy all the Chinese crap? After everything is gone, even Wal-Mart is too expensive. India won't be able to hire for all those call centers when no one is ordering anything. Tech support in India? Not if no one is ordering computers. It won't be long, just a few more months without any unemployment insurance, no jobs = no customers.