Tyler Cowen attempt to excuse the maldistribution of Income of late years, he linking to this Post from a current Post. Daniel Gross published this article in Slate where he wonders about a future Tax Crash, all because most Corporate Taxes collected were Short-term speculative financial transaction Windfalls. Examination of the real Gains in Income must rise to the surface, and the Question asked: How will all this affect the Economy and Government deficits?
A simple Answer states there are only two basic Ways to achieve massive increases in Income in this Country (though People will talk about $400/hour Lawyers, $700/hour Accountants, and $3000/ hour Surgeons). The first method is to be a CEO of a large Corporation, whose Stockholders are such a diffuse Group that attaining a Majority position for Alternate Board membership is almost an impossibility. The second method lay in design of complex Computer Software of high value. Here is where there is a Split: ordinary Software program developers seek a huge Sale price for their Software, Money Manager Software convince Investors to invest heavily at an extremely high Management fee. Study of the above information will conclude that these methods, at all levels, exclude discretionary power of Customers, Stockholders, and Labor. A simple Statement is that in all Cases, vast Income growth comes from establishment of a very limited Cartel (something which the above lawyers etc. have also managed to create).
A Democratic Administration and Congress could possibly decide to extend legislation curtailing Monopolies, to limit Cartel-style Profits-Taking by utilization of Patents and controlled access to preferred Expertise. It is highly unlikely, though, as legislators find themselves excessively lubricated by Lobbyist contributions. It is a nice Thought, but will without Doubt not be initiated; at least until such Cartels can be prosecuted under the RICO act. lgl
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