Big Spender, by Martha Thomases – Brilliant Disguise | @MDWorld
October 11, 2014 Martha Thomases 3 Comments
One classically right-wing premise that has always interested me is this (at least as I understand it): Taxes should be kept low, especially on the wealthy, because they are better able to judge the needs of their communities. For example, why send dollars to Washington to develop alternative energy sources when people can see if solar, wind or tidal work best for them. The wealthy would spend just as much on the public good, but not by way of the government.
I don’t agree with this perspective, but I get it. In a world in which we were all good and kind, it might work. I aspire to live in a world in which we are all good and kind.
But we’re not. Here’s the gist:
“Between 2006 and 2012, the wealthiest Americans became less generous with charitable donations, as a share of their total income, while lower- and middle-income Americans reached farther into their pockets as they witnessed the need for charity in their communities, a study says.”
There are individual wealthy people who donate a lot of money to many worthy causes. The study didn’t say that every rich guy was a selfish pig. However, in the aggregate, they might be.
All sorts of studies have shown that the money in this country is increasingly concentrated in possession, not just of the top one percent of the wealthiest people, but the top .01 percent. And as they get more of the wealth, they are sharing it less.
The article speculates that, perhaps, the reason less affluent Americans are giving a larger proportion of their incomes to charity is that we actually do see the need. More and more, the richest Americans are cut off from everyone else. They hang around with other wealthy people, and that’s all they know.
i don’t know about you, but when I am with the same group of people for a long time, I start to get envious and competitive. I like to see my high school friends, but if there are more than a handful of us, I feel my high school insecurities returning, as I resume my perceived role.
It’s one of the reasons I don’t think I would enjoy living in Los Angeles. It’s too much of a company town. Instead of being happy in my own space, I would be consumed with jealousy for those who have more or get to do more. If you live in Los Angeles and this doesn’t bother you, then you have more control over your feelings than I do.
If I were in the .01% and lived in such exclusive communities, I might not notice that my money could make a difference in the lives of billions of others. I wouldn’t see billions of others. But I might notice that the hedge-fund manager next door had a bigger swimming pool than I did, or threw better parties. I would try to compete on that kind of playing field.
That’s because I can be petty and venal. You know, human.
Which is one reason why it’s ultimately more efficient to pay taxes. Yes, there is waste and mismanagement in government, and we should all fight against that. But there is even more waste and mismanagement in the private sector. And the private sector (as far as charities are concerned) will never have the potential that the government does.
I’d like to find a cure for cancer. It’s not something I’m going to do, because I’m not smart enough and I’m not trained. By myself, I can’t donate enough money to make a difference. Neither can you. However, if our elected officials chose to do so, they could appropriate hundreds of billions of dollars for this effort (instead of spending the money on weapons that end up on the hands of ISIL).
That’s why it’s an honor to pay my taxes (even though it fills me with anxiety) and it’s important to vote. And, in the meantime, it’s important to point a spotlight on the superrich and see if they can be shamed into doing their part.
At least, that’s what this Jewish mother is going to try to do.
Media Goddess Martha Thomases aspires to tithe, and sometimes she even does.
Howard Cruse
October 11, 2014 - 12:47 pm
I’m with you, Martha. When I was a kid I was taught that paying taxes was an important part of the social contract, and that taxes that were structured progressively so that larger percentages of income were paid by the fortunate people who had more money to spare. It made moral and practical sense to me then and it makes sense to me now.
Ed Sedarbaum
October 11, 2014 - 1:36 pm
Martha, your piece prompted some musings of my own specifically about envy and gratitude. Do not expect to find any conclusions at the end.
My life is far from perfect, and yet I feel lucky.
One of the reasons I consider myself fortunate is that I am.
By whatever manner, the atoms in me happened to all come together in a country that, in this century and in my part of the previous one, was and is pretty easy to live in. I say that, of course, as a person born white. Also as one fortunate enough to have had parents who, without earning much money, managed to save enough so that there’d be a little assistance to my old age. Just a little, but boy am I glad for it.
Far more important than money to my sense of good fortune are such factors as: I don’t have to dodge bullets to buy scarce bread for my family — not in a US city and not in Sarajevo and not in a no-man’s-land between warring enemies. Natural disasters? The worst natural disaster here in my neck of the woods was a hurricane a few years ago that ruined a lot of roads, flooded basements, and destroyed the Williamstown Theater Festival’s entire archive of sets and costumes. The people of The Spruces, a trailer park of mostly local retirees, lost their homes. But that storm was NOT followed by a cholera epidemic. Not even a short-term shortage of food.
Watch the news any night and you’ll see several more things I am thankful are absent from my life. (As I joke, I’m lucky I’m old enough not to have to watch the horrors on the news for that many more years.)
As a queer, and as a Jew, I’m fortunate that my atoms came together in the Northeast quadrant of the USofA. Even better, in a city with plenty of liberals to associate with, even if many of those liberals only recently came to embrace the new understanding of sexualities. Even betterer, it looks like the last part of my life will be spent in the bluest corner of the bluest state: Berkshire County, MA. In a town where the biggest civic controversy is between conserving one of the last pieces of farmland in town versus creating affordable housing in an ideal spot or just a decent spot.
And fortune of fortunes, I get to live this life not just with a guy — who would have thunk it when I was a teen? — but with a guy who is so ideally suited to me that it must be a statistical anomaly.
In addition: that by-now corny old saw about democracy being the worst form of government except for all the others is, of course, true. So I’m lucky there. I never had to do the work of creating such a country, or even crossing oceans to get to live here. And by and large I am allowed to do what I want to try to change it, short of violating the rights of others (theoretically).
Sure, I can get anxious imagining some terrible reversal of one of these stabilizing aspects to my life. I know from the news that such things happen to people all the time. But no such storm is currently on the horizon, and the odds of lightning striking this particular life within the number of years I still have left seem pretty small. (In reality, they are 0% if nothing happens and 100% if something does.)
I have not felt this lucky all my life. My life until early middle age, while apparently comfortable, was, within me, unhappy, confused, painful, and self-defeating. And it’s only very recently I have come to such an exalted sense of good fortune. And yet . . .
An awareness of all of the above — a level of good fortune that I suspect is shared by many of the people in our lives — is what prevents me from feeling envious of the possessions of the people of means I know. Sure, I’d like their swimming pool in my backyard (we have a great big backyard!) and their attached garage attached to my house. And when I hear about their travels I wish I could afford to travel as much as they do. But how can I feel a painful envy given the comfort of my own life? And I even feel that way when I’m not high!
As I said, don’t expect any conclusion.
R. Maheras
October 11, 2014 - 4:45 pm
Sigh.
What the study also said was, “At the state level, residents of Utah were the nation’s most generous, donating $65.60 to charity for every $1,000 they earned. One factor is Utah’s large presence of Mormons, whose church practices call for them to give at least 10 percent of their income to charity. Mississippi, Alabama and Tennessee — also with high proportions of loyal churchgoers — were next in the rankings. At the bottom of the list was New Hampshire, where residents gave $17.40 for every $1,000 they earned. Its neighbors, Maine and Vermont, were the next lowest.
In other words, the four highest donor states are ultra Red States, and the three lowest donor states are ultra Blue States.
The study also overlaps the worst economic times since the Great Depression.
And the partisan spinning continues.
The fact is, many liberals obviously think their social responsibility ends when they pay their taxes.
Martha Thomases
October 11, 2014 - 5:10 pm
Russ, the study is about the economic status of the people giving, not their politics. In other words, if the people of Utah, Mississippi, Alabama and Tennessee were the wealthiest states, that might provide a partisan spin.
I don’t know which of the wealthiest people vote Democratic or Republican. I do know that, as a group, they give away a smaller percentage of their incomes than the rest of us.
I’m real opinionated, but this isn’t a partisan rant in terms of political parties (and, for the record, I don’t think Democrat is synonymous with liberal). It’s about who feels compassion and empathy and who doesn’t, particularly at a class level.
Cyndi
October 11, 2014 - 5:11 pm
Snap! Spending this beautiful spring Sunday doing my taxes.
Rene
October 11, 2014 - 7:13 pm
There have been many studies that correlate wealthy and higher social standing with a lack of empathy. It really does seem like money and status are a factor in making people feel less identification with their fellow human beings.
However, such studies are always dangerous, IMO. Because people tend to not understand statistics. In a gut level, we read such a study and conclude: rich people are bastards. But that is not what the study says.
Such studies can’t say nothing about INDIVIDUALS. They are only valid as an observation of a statistical trend among a large number of individuals. No doubt, there are many rich people who are generous, and many poor people who are selfish.
Because the other problem with such studies, is that people don’t read the fine print. The studies usually look upon one single characteristic. For instance, if two hypotethical people have the same religious beliefs, political beliefs, gender, age, marital status, etc. and one of them is richer than the other, then the richer one is more likely to have less empathy.
HOWEVER, that only applies among two hypotethical people that are alike in ALL OTHER respects. If they differ in other respects, for instance, one rich Mormon versus one empoverished agnostic, it may well be that the rich Mormon is more touched by the plight of the poor, as Russ mention.
R. Maheras
October 11, 2014 - 9:37 pm
Martha — I understand what you’re saying, but you know as well as I do that the left beats the drum relentlessly that the “1 percenters” are all GOP.
Of course, that’s not actually the case, but it’s one of the more popular contemporary anti-GOP memes. And the only reason I brought it up is because you’re the one who associated faulty “right-wing” thinking with the issue of charitable giving versus higher taxes.
All I pointed out is that, based on the study, it appears that in the case of the GOP, many of the wealthy seem to be putting their money where there mouths and their beliefs are. And if that’s the case, why should the right’s taxes be raised across the board just because there appear to be so many rich folks on the left who thing their civic responsibility towards the poor ends once they pay their taxes?
Think about it. If Red State wealthy donors in Utah are already out-donating Blue State wealthy donors in New Hampshire by almost 50 percent, who get screwed a lot more if taxes across the board are suddenly raised to compensate for charitable shortfalls?
Now, if you had argued that anyone in a high tax bracket who currently donates little or nothing to charitable causes should get hit with some sort of compensatory tax, then that would be an altogether different, and more fair, argument.
You hear that, Joe Biden?
Martha Thomases
October 12, 2014 - 5:33 am
Russ, I don’t know if you are not understanding me (in which case, I apologize for not being clear), or if you are deliberately twisting what I said to fit a simpler, more stereotypical discussion.
First of all, I don’t care what “the left” says. In my experience, there is no more a single. Once of “the left” than there is a single type of behavior for rich people. We can all cite rich liberals.m George Soros, Steven Spielberg (most of Hollywood, for that matter, som eWorld say), Bruce Springsteen, etc. etc.
Nor did I say the right -wing thinking is necessarily wrong. I said it could work in a perfect world. So could a lot of idealistic left-wing thinking.
While I don’t know the numbers for Urah (and I’m not in a place where I can look them up easily), I do this that Tennessee, Mississippi, and Alabama get far more federal money than they pay I. Taxes, while those of us I. The liberal Northeast pay much more than we get back. So I think we know who gets “screwed” by charitable shortfalls.
Which is sort of my point.
Rene
October 12, 2014 - 1:35 pm
Martha, I think the kind of utopian right-wing thinking you mention is on the wane, that 1950s “the rich know best” kind of thought, that was founded on comformity.
Modern conservatives are more and more like Ayn Rand, they don’t believe rich folks know what’s best for their communities. They believe rich folks shouldn’t be bothered to think about their communities. They believe that people should look to their own self-interest, and in this way become more productive and indirectly benefit the community.
Of course it’s utopian too. When Rand’s ideals are applied in real life, it doesn’t lead to productive supermen entrepreuners, it leads to selfish and destructive pirates.
Martha Thomases
October 12, 2014 - 1:38 pm
Rene, I don’t disagree. I was talking about the philosophy, not the people who subscribe to it.
One can make a parallel about socialism and humans. On paper, as a theory, it can sound really good. It is not yet practiced perfectly.
That doesn’t mean we should dismiss either one. We should look and see what can be adapted to our real lives, and try to do the best we can.
Rene
October 12, 2014 - 3:11 pm
Yeah, communism is like capitalism in that. It’s only extreme naivete or ulterior motives that make people ignore the fact that, once a party has all the power to make central decisions, they will do so with absolute integrity and selflessness.
That without getting into another problem of Marxism, the belief that the ends justify the means, that a violent means like armed revolution will not influence the kind of society that will be formed after the revolution.
In any case, economical ideologies have become religions. There are people who believe the free market is sacred, there are people who believe the government is sacred. I agree with you that we should put people before economic models.
Whatever works in real life, works. Some good things have come from economic competition, and some good things have come from central planning.
I think the reason I’m more of a leftist these days is because the left is more pragmatic than the right these days. The right is still undergoing an ideological hardening.
Rene
October 12, 2014 - 3:13 pm
I meant… it’s naivete to think that once a party has all the power to make central decisions, they will do so with absolute integrity and selflessness.
Neil C.
October 13, 2014 - 7:43 pm
This reminds me of Tom Hanks’ line from Volunteers: “It’s not that I can’t help these people, I just don’t want to.”
tom brucker
October 13, 2014 - 8:50 pm
What percentage of church tithes actually is directed to social aid? Not much. Big fancy churches are able to support many programs, but the bulk of the donations supports infrastructure, staff, and member programs. Yes, the 4 red states look good on paper, but in real life they are quite selfish.
R. Maheras
October 14, 2014 - 5:40 am
Tom — It depends on the church. Generally, from what I’ve seen, most charitable donations don’t go through one’s church anyway — at least not any church I’ve attended. They will occasionally have separate fund-raising drives for various ministry activities abroad, or for Bible camps or field trips, but normal tithing usually goes to support day-to-day church activities. Which means, if Joe or Jane Sixpack wishes to support outside charitable activities, he or she does so on their own and directly with the charity involved.
As for those Red States being “selfish” despite the fact that they lead the nation in charitable giving, you sound like a character from one of Steve Ditko’s Randian-inspired social commentary comics.
Rene
October 14, 2014 - 12:07 pm
Even when money goes directly to support infrastructure and staff of churches, I hesitate to say that that doesn’t have any positive impact on people living in impoverished areas. Churches have many flaws, but they do a good job of keeping a least a few kids away from drugs and violent crime.
I regret to say that the few things I saw of Steve Ditko’s political comics made me doubt his sanity a little. I don’t know, Libertarianism when taken to an extreme always seems a little insane to me, but that is true of a lof of philophies and religions.
Whitney
October 14, 2014 - 1:41 pm
M –
Finalizing my taxes today. And grateful in so many ways…
I have a job.
I live in America which gives citizens more options than most other countries on this planet.
My small tax contribution can build roads, schools, telecommunications infrastructires…as part of a wise community allocation.
I know someone who knows tax accounting.
All reasons to thank God this day. And joyfully pay my share.