The Constitution: A Rich Man's Paradise

how does the constitution make the rich richer

The United States Constitution has been criticised for favouring the wealthy, with some arguing that it was written by and for rich white men, perpetuating a system that makes the rich richer. The Constitution was drafted by wealthy men who wanted to protect their interests, and the right to own property is enshrined in the document. This has led to accusations that the political system benefits the rich, who can afford to pursue politics full-time, and that the tax system is structured in their favour. While some argue that the wealthy already pay more than their fair share of taxes, others advocate for a billionaire tax to address wealth inequality. However, the effectiveness of such a tax is debated, and it may face legal challenges due to the complex nature of wealth and income taxes.

Characteristics Values
Written by the rich George Washington, John Hancock, Benjamin Franklin, and Thomas Jefferson were all very rich men.
Written for the rich The Constitution was written to benefit the wealthy and control the laws by which a government operates.
Written to protect the rich The Constitution was designed to protect individual rights, including the right to property.
Taxation issues The Constitution may hinder efforts to impose a billionaire tax or wealth tax due to legal complexities and questions of incidence.
Power dynamics The Constitution was written by the powerful and wealthy, who created rules to maintain their status, making it difficult for the poor to gain control.
Voting restrictions Originally, only white men who owned property could vote, excluding women, tenants, and Black individuals, who still had to pay taxes.
Class division The Constitution solidified a division between a rich ruling class and a poor working class.
Charity and taxes While some argue the rich do not pay their fair share in taxes, Americans across the income spectrum, including the wealthy, give to charity.

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The Constitution was written for the rich

The United States Constitution has been criticised for being a document of, by, and for the rich. Charles Beard, in his 1936 book, "An Economic Interpretation of the Constitution", wrote:

> [T]he primary object of a government, beyond the mere repression of physical violence, is the making of the rules which determine the property relations of members of society, the dominant classes whose rights are thus to be determined must perforce obtain from the government such rules as are consonant with the larger interests necessary to the continuance of their economic processes, or they must themselves control the government.

The Constitution was drafted in 1787 by 55 wealthy men in Philadelphia, including Gouverneur Morris, who was its chief architect. The document was criticised by some for its lack of specific protection against tyranny and its failure to include a bill of rights. For example, Congregationalist minister and abolitionist Samuel Hopkins of Connecticut charged that the convention had sold out, asking:

> How does it appear [...] that these States, who have been fighting for liberty and consider themselves as the highest and most noble example of zeal for it, cannot agree in any political Constitution, unless it indulges and authorizes them to enslave their fellow men?

The Constitution was also criticised for not adequately protecting "those essential rights of mankind without which liberty cannot exist". Some argued that it was rushed through and would saddle the country with an ill-advised, potentially ruinous central authority.

The administration under the new U.S. Constitution was notably different from that under the Articles of Confederation, especially in financial matters. Under the new Constitution, Treasury Secretary Hamilton solidified the credit rating of the United States, in contrast to the old government, which was powerless to raise money.

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The Constitution protects the wealthy

The Constitution of the United States was written by and for the wealthy. The men who engineered the revolt that led to the Constitution were largely members of the colonial ruling class, including George Washington, John Hancock, Benjamin Franklin, and Thomas Jefferson. Four groups were not represented at the Constitutional Convention: those without property, slaves, indentured servants, and women. Thus, the Constitution did not reflect the interests of the disenfranchised. Instead, it ensured a greater permanent division of society into a rich ruling class and a poor working class.

The Constitution was designed to protect the rights of property owners, which included the wealthy. The qualification for voting at the state level required owning property in most cases, excluding women, indigenous people, and slaves. There were no popular elections to higher office, and the wealthy wrote the rules that kept them in power. This led to a system where the rich had more power and influence than the poor, as they were the "constituents" of the government.

The American Revolution, including the Boston Tea Party, was driven by the rich, who feared losing profit due to British taxes on tea imports. The Constitution was created to protect the interests of the wealthy and ensure they maintained control of the government and its laws. However, some argue that the Constitution was not purpose-built to benefit or protect the rich specifically and that it is vague and open to interpretation.

The Constitution also presents challenges when it comes to taxing the wealthy. A billionaire tax, for example, could be perceived as a wealth tax or a direct tax, which are allowed under the Constitution but must be apportioned among the 50 states according to population. This could lead to complexities in determining who bears the tax burden, as corporations may pass taxes on to customers or employees. While there are debates about whether the rich pay their fair share in taxes, the evidence suggests that they already contribute more than their fair share.

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The Constitution does not protect the wealthy at the expense of the poor

While the US Constitution has been accused of protecting the wealthy, it does not do so at the expense of the poor. The Constitution was designed to protect individual rights, and one of those rights is property. Hence, it can be argued that the Constitution protects the wealthy. However, it is important to note that the Constitution does not inherently protect the interests of the wealthy over the poor.

The Constitution has provisions for equal protection and due process, which apply to all citizens, regardless of economic status. For instance, in the case of Boddie v. Connecticut, the Court ruled that the state's filing fees for divorce actions were unconstitutional because they prevented individuals from obtaining divorces, demonstrating that the Constitution can protect the poor from unfair economic burdens.

Additionally, the 16th Amendment allows for taxation of income, which can be used to redistribute wealth and address economic inequalities. While there are debates about the specifics of tax policies, such as the proposed billionaire tax, the Constitution does not inherently prevent efforts to address economic imbalances.

Furthermore, the House, as the Federal Branch directly elected by the public, provides a mechanism for the people to have a say in governance and hold the powerful and wealthy accountable. The Constitution also grants Congress the power to levy taxes and raise revenue, which can be used to fund social programs and address economic disparities.

It is worth noting that the Constitution's protection of property rights and individual rights can be interpreted as favouring the wealthy. However, the Constitution also provides a framework for laws and policies that can address economic inequalities and protect the rights of all citizens, including the poor. The effectiveness of these protections depends on how they are interpreted and implemented through laws and policies.

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The Constitution does not allow a billionaire tax

The US Constitution presents several challenges to the implementation of a billionaire tax. While direct taxes are permitted under the Constitution, they must be apportioned among the 50 states according to population. This means that if all the billionaires live in one state, and a tax is levied to collect a percentage of their wealth, all 50 states would have to pay, rather than the state where the billionaires reside, or the billionaires themselves. This would result in the billionaires paying relatively little, with the burden of the tax falling on the rest of the country, which is presumably not the intention of the proposal.

To avoid this issue, the proposed legislation could be framed as a tax on income, which is permitted under the 16th Amendment. However, it is unclear if this characterization would hold up in court, and the direct tax question would likely be litigated. Furthermore, there is ambiguity around what counts as income, with early interpretations from the Supreme Court stating that income from appreciation must be "realized" before tax can be imposed. While this perspective may have evolved, the relevant case law has not been overruled, leaving room for legal challenges.

Another challenge arises from the complex nature of wealth accumulation and ownership structures. When a corporation pays corporate tax, it is difficult to determine who ultimately bears the tax burden. It could be the shareholders, the customers in the form of higher prices, or the employees through reduced wages. Similarly, future expected taxes may already be reflected in stock prices, impacting shareholders. These complexities make it challenging to isolate the tax burden and apply a uniform tax system to all forms of wealth.

Additionally, the "stepped-up basis" rule, also known as the "angel of death" loophole, allows the value of an individual's assets gained during their lifetime to become immune to taxation upon their death. This enables the billionaire's heirs to sell off assets to pay off any outstanding loans without worrying about taxes. While there is a justification for this rule to avoid double taxation, loopholes exist that allow the rich to avoid paying the 40% inheritance tax on fortunes larger than $14 million.

In conclusion, while the Constitution does not explicitly prohibit a billionaire tax, it presents significant legal and structural challenges that would need to be carefully navigated to implement such a tax effectively and equitably.

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The Constitution was designed to protect individual rights

The United States Constitution has been interpreted in various ways, with some arguing that it was designed to protect the interests of the wealthy. The Constitution was written by wealthy men, for wealthy men, and it is argued that the rules were created to keep the powerful and wealthy in power. The Boston Tea Party, for example, was not simply a protest against taxation by everyday colonists but also a reaction by rich tea smugglers who feared losing profits due to British taxes that favoured the East India Company.

The founding fathers, such as George Washington, John Hancock, Benjamin Franklin, and Thomas Jefferson, were members of the colonial ruling class. They were aware that the government needed to control the laws that governed property relations, and the Constitution ensured a division of society into a rich ruling class and a poor working class. Qualifications for voting often required property ownership, excluding women, indigenous people, and slaves. This further entrenched the power of the wealthy, as they were the "constituents" of the government.

However, others argue that the Constitution was not designed to specifically benefit the rich but to protect individual rights, including the right to property. While it may seem that the Constitution protects the wealthy, it does not do so at the expense of the poor. The system of government has evolved, and some argue that it has helped the poor more than any other system.

The debate over the interpretation of the Constitution continues, especially in the context of modern-day issues such as taxation and wealth distribution. Some argue that the wealthy do not pay their fair share in taxes, while others point out that high-income earners invest their money or voluntarily contribute to charitable causes. The complexity of the tax system and the varying definitions of "fair share" further complicate this discussion.

Frequently asked questions

The Constitution was written by and for rich white men, and it has been argued that it was designed to protect the interests of the wealthy. However, some argue that the Constitution is vague and open to interpretation and has changed a lot over time, helping the poor more than any other system in history.

The Constitution was designed to protect individual rights, including the right to property. The wealthy had to control the government directly or control the laws to ensure their economic processes were not disrupted.

The Constitution has an impact on how taxes are levied and who pays them. For example, the proposed billionaire tax may face constitutional issues as it could be seen as a direct tax, which has to be apportioned among the 50 states according to population.

There are frequent claims that the rich do not pay enough in taxes, but there is also evidence that they already pay more than their fair share. It is also important to note that Americans across the income spectrum are generous with charitable donations.

The Constitution only ensured a greater permanent division of society into a rich ruling class and a poor working class. The qualifications for voting at the state level required owning property, excluding women, people of color, and those without property, creating a system that favored the wealthy.

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