Why poor people don't want to tax rich people

I've been puzzling over this issue for a long time now. It doesn't make a whole lot of sense to me, but the gist of it is that many Americans who earn a median income down to the poverty level* defend vehemently the right of rich people to keep their vast sums rather than tax them at a higher rate past a certain earning point.

The most common argument is that those rich people work hard for their money and they should keep it. The same is said for the middle wage earner - they work hard for their money and they should keep it. But those poor folks aren't working hard for their money so we have no right to tax the middle class or the upper class at a higher rate than the poor. No redistribution of wealth, no sirree. That would be communism.

There's a funny statistic out there and, by funny, I don't mean humorous, but ironic. If you ask wage earners where they fall, invariably they respond the "middle class", regardless of the fact that they are closer to the poverty line. Even those in the top 5 percent of all earners refer to themselves as middle class.

I suspect this is an issue for those who are in the top 5% because they "feel" like they aren't wealthy. Especially when they compare themselves to the extravagant, flagrant wealth that exists in this country. Namely folks like Bill Gates, Oprah and the Kardashians.

But what's with the taxation thing? My theory is that Americans, poor and middle class, don't want to tax the rich at a higher rate because they themselves wouldn't want to be taxed at a higher rate. And, since the American Dream is still alive and well, they firmly believe that one day they, too, will be rich. So, you better not start taxing their peeps now because they'll be joining them shortly!

This is just my theory because I honestly can't figure out the whole "rich people work hard so they deserve those hundreds of millions" thing. I know an incredible number of poor people who work harder than rich people. But, then again, maybe they're defining "hard" differently than I. There's some dissociative behavior going on there. It's the distancing of "us" versus the poor - a bizarre discrimination even though most of the "us" are poor but just classify themselves as middle class.

What do you think? Why is there resistance among many of the middle to lower class against taxing the rich at a "fairer" rate? And, what's with the firm belief that poor people are lazy?

*Poverty level is $22,314 for a family of 4 (or 46.2 million people in the U.S.); Median household income is $49,445.

Bartering in a new economy

A lot of people have been discussing using bartering as a method of exchanging goods and services in the new economy, one where jobs may be scarce and the money tight, but where the need for exchange still exists.

Well, a Seattle company has created a website, called Dibspace, where you can post and exchange bartered services and goods. Basically the way it works is that you offer your services for a certain number of "dibits". Each dibit is equivalent to one dollar. So, let's say I sold my services providing canning lessons to someone for 25 dibits. I now have a credit that I can use for another service on the site, say housecleaning, window washing, sock folding, whatever is being offered. (For more detailed info you can read the FAQ.) The site does provide the appropriate tax forms at the end of the year as there are tax liabilities with bartered services.

The nice thing about Dibspace is not only is it free (for now), but you don't have to find someone to match an exchange with since you are bartering for dibits. It's an interesting concept and one might wonder why not dispense with the dibits business and just use dollars altogether instead? Their site offers the following answer:

Dibits pick up where the dollar leaves off. Even in a strong economy there's a whole lot of productive hours that go unfilled. Why? Because consumers don't always have enough dollars to afford to consume it all. To fill that gap, a specialized currency is actually necessary.

Consider the current economy. Cash is getting harder to come by and people are spending less. As a result, businesses are getting less work and consumers have more unmet needs. In economics-speak, we're value rich but cash poor. Dibspace.com makes it possible for businesses and consumers to continue to trade even when the US dollar isn't up to the job.

This isn't the only online bartering website. The issue with Dibspace, at this point, is that it's local to Seattle only. There are other online bartering sites that are national, like Joe Barter and ITEX, but you have to register to view data or make an offer and there just isn't much there in the way of services. Basically, the problem here too is that you have to find someone willing to accept some exchange that you can provide for their goods or services.

These sorts of sites offer some practical services (accounting, web design, etc.) along with more recreational things like pet portraits, photography and the like. I would love if there were a site similar to Dibspace that hooked up people needing basic homesteading goods and services in a similar fashion since finding someone to trade services where both parties match what they need is difficult.

Would you be interested in this sort of homestead bartering website? What kind of services would you be able to offer?

Energy, economy and climate change

The issues of energy, the economy and climate change, when looked at face value, seem like discrete problems facing not only the United States, but the rest of the world as well. These are the three biggest challenges we will (hopefully) face in our lifetime. But, when looked at a little closer, each of these issues represent a leg on a three legged stool.

If one leg is wobbly or can't hold its weight, then the balance is off and we risk tipping over permanently. Without a solid energy plan, the economy can spiral into ruin and, if we choose a deleterious energy plan (coal, oil, etc.), then climate change is exacerbated beyond potential repair. This is certainly a frightening prospect and this triad of issues can seem horribly insurmountable.

However, if we pursue a green energy plan, then the other issues, by default, have the potential to be resolved. This is the type of resolution that the next administration should focus on.

You see, if we invest in green energy, this creates jobs, not just in the development of new technologies that can be used for the benefits of U.S. citizens, but also can be sold to other nations or shared with developing countries to help reduce their emissions. This clearly helps our economy and the environment.

Additionally, an investment in energy also assumes an investment in energy infrastructure. This means shoring up the electrical grid which, in turn, creates a tremendous number of jobs and industry. Think of it as the Green New Deal. This also means development of more energy conservative products such as appliances as well as cars and transportation alternatives. This is not only good for the economy, but for the environment as well.

A side benefit of a strong green energy plan and investment also necessitates that we no longer are dependant on foreign sources of energy whether that be oil or even natural gas. With that comes increased national security. This is just good all around.

If all this were to be developed, a decrease in carbon and other climate affecting emissions would be lowered rapidly and considerably, hopefully reducing the world's risk of increased issues resulting from advanced climate change. In other words, less flooding, less hurricanes, less polar ice melting.

So, I urge you to consider writing to the president-elect and asking that his focus be on investing in green and renewable energy, the accompanying jobs that would be created and the resulting impact on climate change, air quality and environmental health. It's a one-two-three punch that is low-hanging fruit to some really tough problems.

Related posts:
Clean coal or dirty politics?
Stop drilling the American public
Fool sell

Related books:
The Green Collar Economy: How One Solution Can Fix Our Two Biggest Problems
Freedom From Oil: How the Next President Can End the United States' Oil Addiction
Building the Green Economy: Success Stories from the Grassroots
A Declaration of Energy Independence: How Freedom from Foreign Oil Can Improve National Security, Our Economy, and the Environment