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Wednesday, March 27, 2019

OxyContin, the Special Olympics, Charity, and Taxes

"But the wealthy are so generous in their support of charities and non-profits."

It's a point I often hear from people when discussing taxes.

It's in the news right now.

Here's how:
The White House Budget proposal would cut funding to the Special Olympics. This part of the proposal is an easy target for critics of the White House, but I am much more interested in the way the Administration has defended the cut.

In response to questions about it, Besty DeVos said, “I think that Special Olympics is an awesome organization, one that is well supported by the philanthropic sector as well.”

And there it is. The assumption behind DeVos's statement is this:
The rich are generous with their money and that is why we should cut government spending and stop taxing the wealthy so heavily. The wealthy provide jobs and give to charities. If they were able to keep more of their money, they would give more, and the government wouldn't need to support causes like the Special Olympics or universities or the arts. The wealthy will step up and make sure those causes are supported. 
That argument sounds nice. It plays into our perception that people who succeed must be good people. Look at this list of generous billionaire families; it practically proves success is a sign of a person's inherent goodness. "Isn't it pretty to think so?"

Unfortunately, even bad hombres are able to succeed from time to time.

For example, take one of those very generous billionaire families.
The Sackler family give a lot of money to charities and non-profits, and that's nice.
But it is worth noting that the family owns Purdue Pharma, the company that brought  OxyContin to market in 1996. Much of their wealth has been accumulated through the sale of a narcotic painkiller - a narcotic painkiller that, according to a recently settled lawsuit, has been deceptively marketed in ways that fueled the opioid crisis.

They are drug dealers.

They make and market an addictive drug. They actively worked to get that drug into the hands of as many people as possible. When people started dying, the family did not stop trying to find new customers. When the drug they sold was named as one of the sources of a national crisis, they continued to defend their efforts to sell the drug.

I'm sure the Sackler family does not think they are bad people. After all, they are only working to support themselves. They are enjoying economic success. They shouldn't be punished for that.
And, here's the important part, they give generously to museums, charities,  and universities around the world.

But they are bad people.

They started the opioid crisis.

They sell the drug that kills tens of thousands.

They sought customers in places where their drugs do harm, and they aggressively sold the drug there.

They still sell it.

Our government has not stopped them from selling their drugs in irresponsible ways.

The Sackler family's generosity cannot make up for the harm they have done.

So, don't ask me to consider the generosity of the wealthy when forming my views on tax policy.

I support policy intended to prevent the pooling of wealth.
I believe economic inequality is a serious issue, and that the past thirty-five years of tax policy have contributed to that issue.
I support a return to the top marginal tax bracket that was in place from 1965-1981 when top earners paid seventy percent income tax on anything over a certain level of income.

People don't have to agree with my policy preferences, but I am going to argue with people who tell me my views are wrong-headed. When I discuss such policies, I will try to respect the arguments people use support lower taxes on the wealthy.

But I will no longer listen to arguments that invoke all the good done by wealthy Americans who give to charity.

Nor will I listen to arguments that suggest the philanthropic sector can take on the work of a strong government.

Those arguments ask me to hand over authority to people simply because they have wealth, and I do not believe such people will consider my interests when making decisions.