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Nov 05, 2012

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Dan

Well, you may be overlooking the wealth divide as well. All too often CEOs of major corporations are being paid a relatively modest sum, however what is not being accounted for is the ability to build wealth, money that is not expended on necessities upon reception of such funds. Once you start tallying ratio of income to growth in wealth, the picture becomes incredibly stark. Government transfers, by design, prevents the build up of savings in the poor while attempts to tax growth in wealth has been met with such hostility that the GOP has pretty much run an entire campaign on trying to zero out taxes on such gains.

Also, while total redistribution may be out of the question, the incredible amount of wealth stored away by 1% of the population may do as much to hinder growth as the other extreme options.

Michael W. Kruse

Thanks, Dan. It is complicated.

With regard to you last sentence, I's suggest that the wealthy do have their wealth "stored away," as though it is under a bed or in a vault. They have it invested, which makes it available for use in the economy. I'm not suggesting that doesn't meant that more of it could be taxed, but rather that there are trade-offs. Taking money from the wealthy is also the same as reducing the amount available for economic growth. There are many trade-offs that have to be weighed.

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