It seems like a stretch, right? Pretty unlikely that anyone would want to do this, huh? And yet, CNBC is reporting that a group of 51 German millionaires are proposing to do just that. Germany, for the record, has the most millionaires in Europe both proportionally and numerically. I cannot imagine that all of the EU's financial issues would magically vanish because this small group is willing to kick in a little extra. Far from it. But the larger concept is worth examination.
Most industrialized countries (or is that term now obsolete, since industry no longer is the engine of economic growth?) are facing difficult times right now. Deficit spending is the order of the day, as it often is when the global economy slumps. As long as free market economies are in the lead on the international stage, the rise and fall of fortunes are likely to remain the norm. There is little good that comes from lean economic times for most people, beyond the stereotypical "character building" and "bootstrap pulling" that are nothing more than mental and verbal exercises in taking the edge off the pain and hardship that average people endure (or the mantra that those not impacted repeat to themselves as they ignore the cries of the suffering).
But there is a real good in taking advantage of the reflective necessity that generally accompanies hardship. In this downturn, it is perhaps worth thinking about my first statement, the seemingly absurd idea that anyone would want to pay higher taxes. It is an unpopular idea, sure, and if I ever decide to run for office, I'm sure what I am about to say will likely become fodder for an opponent, but it is worth articulating. If we expect services from our governmental entities, we need to pay for them. Period. And if there isn't enough money to pay for what we want, need, and/or expect as a people, we have only a few choices. We can choose to cut services. We can choose to borrow and hope to pay for our spending later. Or we can raise taxes.
I think the mistake we make is not taxing when times are good, when revenues are up, and the mood of the public is on the whole more positive. The previous administration, when there was some modest positive economic growth still afoot, opted to cut taxes for the wealthiest Americans, for example. I think we make the mistake of not following the advice of good financial planners - as a nation, we do not save for lean times. We have no cushion to fall back on. We carry too much debt. All of this is a formula for fiscal failure. As households, many of us set aside money for retirement, for our kids' college funds, in HSAs, or for unexpected (or even expected) expenses of all sorts. Wise planners take the riches in times of bounty and set them aside, so why can't we ask for that on local, state-wide, and national levels? The pain is lesser when the wallet is fatter, no?
What's more, many (even most) of us are insured in some way. We pay into a system designed to spread risk (that is, when insurance companies aren't simply trying to make excessive profits, but that's another rant). As much as folks would like to think otherwise, that's a bit of a socialist idea and at the core, what these German millionaires are proposing is a bit of a socialist idea as well. Americans sadly fear the implications of that word - socialism. Germans, as the article points out, are not as uncomfortable with it.
Post-war Germany created its very own brand of capitalism — the “Soziale Marktwirtschaft”, which literally translated means “social market economy”, but in essence it understands itself as capitalism with a strong social conscience; an economic blueprint that is built on a consensus society, rather than one of social conflict.
I like to think that, at heart, most people want what is best not only for themselves, but also for those around them, their families, friends, and neighbors. While we may not always consciously strive to thrive together, most of us are at least not interested in building ourselves up at the expense of others. And yet, when a slim percentage of any nation holds an overabundance of that nation's wealth, and that group sits back and watches as the larger group endures the pain of economic hardship, it is hard to think that market capitalism is a humane and logical choice for a civilized people.
Even many of America's wealthiest citizens understand their obligation to the society that allows them to become so wealthy. Bill and Melinda Gates, for example, give away incredible sums every year, and they are far from alone. We are a charitable people, we Americans. Perhaps, in spite of all the rhetoric surrounding the Arizona immigration laws, we still understand that we are a nation of immigrants whose families lived the cliches, pulled themselves up by the bootstraps, if you will, and we still know that you need a fair playing field, and sometimes even a little help, to get those boots on.
I am certainly no millionaire. I make a good living, and feel remarkably fortunate to have all I have; a nice home, a great TV, plenty of food, and a few good bottles of wine in the cooler. I may not have a whole lot more to give than I already do when paying my taxes, but I certainly have enough to give to charitable and political causes, to go out or order in dinner more than occasionally, and to spend on those bottles of wine and the cable and other services that feed content to that TV of mine. I see the point these 51 individuals are making. Maybe it isn't easy to see if you don't have the luxury of a little extra, but when we don't have 10% unemployment, an imploded housing market, and financial institutions up to all sorts of shenanigans, most of us in the US have at least a little bit of that luxury, no?
I want to see tax revenues spent wisely. I want to see a solid plan for the future, prudent spending now, and tangible payoff for the monies spent. I see my taxes as investment, on the one hand, and as a charitable gift on the other, and I hold those accountable for managing that money. I make sure I vote, I contact my elected officials, and I stay informed.
And I guess I'm a bit odd here - I suppose what I'm saying is that, like these German millionaires, I'm willing to pay more taxes.
I would be willing to pay more taxes also. I may be more socialist than you: I think there should be a maximum wage, beyond which the rest of the money goes toward the public good.
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