Monday, September 5, 2011

Rich People In France Want To Pay Higher Taxes?


It's always good to see citizens of a country go the extra-mile to help their nation. Such is the tale of France right now. Wealthy citizens of France have signed a petition to their government to tax them more so as to make up for the nation's enormous debts and budget deficits. For a while now, tax rates of income and wealth have fallen dramatically; since then creating stronger incentives for people to work harder and also declare their income. As a result of this, wealthy citizens' businesses are now more successful than ever and they are now eager to "give back" to the economy.

One of their suggestions was a tax equivalent to 3% of their income which will be imposed until the budget deficit in their country was reduced to 3% of the gross domestic product. Billionaire investor Warren Buffett had stated in a piece published in The New York Times that it is time the U.S. Government took away more from the super rich. Saying that the wealthy have been caressed enough by a billionaire-friendly Congress. This idea has now been embraced by a number of European countries. Buffett and the French petitioners have used terms such as solidarity and shared sacrifice that are usually part of the lexicon of the Left. It is however, unclear whether this is a genuine move by the wealthy citizens or just a cynical ploy to escape public ire at a time of great economic distress.

Economists argue that it is regressive that the middle class should pay relatively higher income taxes and earn negative real returns on their preferred mode of savings, the bank deposit. They say this kind of taxing kills economic growth and doesn't allow for income equality.

Also, it is worth noting that the calls have come from business people who have built their wealth in activities that have not faced popular anger. In short, they are not hedge fund managers or bankers. This move by the wealthy citizens of France leave a lot to be speculated by spectators. The fact remains that this could be the best thing that has happened to the French government in almost 25 years! Obviously, the news sounds controversial, primarily for the fact that people all over the developed world are crying for less tax.
But, this might just be what the world needs to save itself from this economic downturn.

Saturday, September 3, 2011

Jobs & Crime

President Obama's speech on his plan for job creation can't seem to come fast enough for America. Albeit, grown people make their own decisions and are responsible for them, the scarcity of jobs does play a role in the rate of crime right now. While nationwide unemployment stubbornly sits around 9 % and higher in some mid to major metropolitan areas, this has many people nervous and anxious. The unemployment rate is significantly higher for African Americans, which sits around 16%. Many of the few jobs that are out there are low paying and offer no benefits. Also, hundreds and even thousands of Americans at a time are still losing their jobs or finding out they will not have one soon. Republicans and Democrats go back and forth about which side’s ideas are better and will or will not work, but they are not the people feeling the burn of not having a steady income. So while politicians with their unjustified high salaries bicker and act childish with their egos, the average American citizen continues to struggle and fall deeper into financial holes. Most Americans still believe the country is set in a recession. In which some economists agree with them. There is no quick fix to this issue, but a resolution is needed like air is needed to breathe.

Due to there being a wide shortage of jobs, crime appears to be on the rise. People are finding ways to put money in their pockets and food on the table one way or the other. Men and women alike have found themselves breaking the law to feed themselves and/or their families. Crimes are ranging from petty theft, prostitution, burglary, robbery, money making scams online, and drug trafficking. Now, some people just have regular criminal tendencies and act out regardless, but for others desperate times call for desperate measures. Frequent “Smash & Grabs” in cities like Atlanta are definitely bold and desperate crimes to find money for reselling stolen merchandise. Clothing, liquor, and beauty supply stores are typical targets for these types of crimes. Law enforcement agencies and courts find themselves with a higher number of cases involving property theft and robbery as unemployment numbers steadily increase.

Without a constructive plan in place to progress America’s financial future including job creation, crime will continue to spiral out of control. It’s time for the government to step up and put some firm actions in motion that will truly benefit the American people sooner than later. Don’t talk about it, be about it!