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Let's Drug Test The Rich Before Approving Tax Deductions, Says US Congresswoman (theguardian.com) 760

Press2ToContinue writes from a report via The Guardian: "The [tax] benefits we give to poor people are so limited compared to what we give to the top 1% [of taxpayers]," Congresswoman Gwen Moore says. "It's a drop in the bucket." Many states implement drug-testing programs to qualify for benefit programs so that states feel they are not wasting the value they dole out. However, seven states who implemented drug testing for tax benefit program recipients spent $1 million on drug testing from the inception of their programs through 2014. But the average rate of drug use among those recipients has been far below the national average -- around 1% overall, compared with 9.4% in the general population -- meaning there's been little cost savings from the drug testing program. Why? "Probably because they can't afford it," says Moore. "We might really save some money by drug-testing folks on Wall Street, who might have a little cocaine before they get their deal done," she said, and proposes a bill requiring tests for returns with itemized deductions of more than $150,000. "We spend $81bn on everything -- everything -- that you could consider a poverty program," she explained. But just by taxing capital gains at a lower rate than other income, a bit of the tax code far more likely to benefit the rich than the poor, "that's a $93bn expenditure. Just capital gains," she added. Why not drug-test the rich to ensure they won't waste their tax benefits? She is "sick and tired of the criminalization of poverty." And, she added: "We're not going to get rid of the federal deficit by cutting poor people off Snap. But if we are going to drug-test people to reduce the deficit, let's start on the other end of the income spectrum."
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Let's Drug Test The Rich Before Approving Tax Deductions, Says US Congresswoman

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  • by Anonymous Coward on Friday June 17, 2016 @08:05AM (#52335153)

    Lets drug test bloggers before they are allowed to post online. It should result in a marked decrease in idiotic headlines...

  • Better Idea (Score:5, Insightful)

    by Anonymous Coward on Friday June 17, 2016 @08:05AM (#52335157)

    How about we start treating each other with some god damned respect and abolish the entire drug-testing paradigm?

  • Apples-Oranges (Score:4, Insightful)

    by Anonymous Coward on Friday June 17, 2016 @08:05AM (#52335159)
    On the one hand, when you drug test poor people, you're testing them before giving them money that they did not earn. If they do not want to be tested, they don't need to apply for the money. On the other hand, under the Congresswoman's proposal to drug test rich people, rich people would be drug tested just for filing taxes, something that the government forces them to do. In other words, it's forced drug testing without cause or recourse and for no reason other than they are wealthy, which is a violation of their constitutional rights.

    Personally, I'm not for drug testing anyone unless it's part of a criminal investigation or unless they are in a job where they are responsible for other people's safety.
    • Re:Apples-Oranges (Score:5, Insightful)

      by Anonymous Coward on Friday June 17, 2016 @08:10AM (#52335193)

      They aren't being drug tested for filing their taxes, only for applying for their tax breaks and tax credits. They could just take the standard deduction to avoid the whole thing.

    • Re:Apples-Oranges (Score:5, Insightful)

      by fche ( 36607 ) on Friday June 17, 2016 @08:14AM (#52335219)

      subsidy / welfare == receipt of someone else's money
      tax deduction == less of one's own money being taken

      those things are different

      • Re: (Score:3, Insightful)

        by Anonymous Coward

        Drug testing for welfare benefit recipients = being forced to take a drug test to before getting a financial benefit.

        Drug testing for people claiming over $150k in tax deductions = being forced to take a drug test before getting a financial benefit.

        Those are far more similar than you seem to think they are.

        • Re: (Score:3, Insightful)

          by Salgak1 ( 20136 )

          You're proceeding under a false assumption, namely that keeping more of the income you earn is a benefit, i.e. a cost to the government.

          The underlying assumption is that all income is the property of government, and allowing you to keep a portion of it is generosity on the government's part. . . .

          If you believe, as many of us do, that governments derive their power from the citizens, this follows.

          If, on the other hand, you consider the citizen as a subject of the government, you will conclude differently. .

          • Re:Apples-Oranges (Score:5, Insightful)

            by 140Mandak262Jamuna ( 970587 ) on Friday June 17, 2016 @08:54AM (#52335511) Journal

            The underlying assumption is that all income is the property of government, and allowing you to keep a portion of it is generosity on the government's part. .

            No. The underlying assumption is, government is entitled to part of your income. Your ability to earn that income is the result of investment made by the government in law enforcement, property rights enforcement, maintaining civil courts. When you have a contract with someone, that party does not default because you have government standing by you with a big baseball bat to enforce it. It deserves a cut on the money you make on that contract.

          • You seem to be thinking that the government can't have tax breaks that are conditional on something. There are tax breaks that are conditional on putting a child through school, for example. Why can't deductions over a certain amount call for drug testing? We're not making anyone submit to testing, only those who want extra deductions on their taxes.

      • Re:Apples-Oranges (Score:4, Interesting)

        by burtosis ( 1124179 ) on Friday June 17, 2016 @08:29AM (#52335309)
        On top of that there are so many problems deciding on any action with regard to drug testing. Testing for cocaine is pretty ineffective. Testing and rejecting a federal return for smoking pot where states claim its legal. False positives from numerous sources such as poppy seed buns. The list goes on and on and on. Maybe society should pull the stick out of thier collective asses and realize the war on drugs is a massive net loss for society.
      • Re:Apples-Oranges (Score:5, Insightful)

        by Yokaze ( 70883 ) on Friday June 17, 2016 @08:43AM (#52335415)

        Only if you reject the concept, that taxes are your due share in being part of a society you profit from.

        There is also a difference between possession and ownership: You earn a certain amount of money and possess it. The taxes are your dues, the rest is what you own.

      • Re:Apples-Oranges (Score:4, Informative)

        by whoever57 ( 658626 ) on Friday June 17, 2016 @09:45AM (#52335981) Journal

        tax deduction == less of one's own money being taken

        Money that was made using infrastructure paid for by taxpayers. Money that was often made by pushing costs onto taxpayers.

    • Whether you agree with drug testing for welfare or not, there is a bid difference between testing for handouts, and testing for tax penalty avoidance. A complete lack of comprehension of said difference is the most disappointing thing about such a proposal.
      • Re:Apples-Oranges (Score:4, Insightful)

        by Ol Olsoc ( 1175323 ) on Friday June 17, 2016 @08:59AM (#52335549)

        Whether you agree with drug testing for welfare or not, there is a bid difference between testing for handouts, and testing for tax penalty avoidance. A complete lack of comprehension of said difference is the most disappointing thing about such a proposal.

        While it is a completely different thing, why do you support wealthy people's having addictions?

        I suspect in large part, this might be a point the congresscritter is trying to make.

        And in the end, as we've been told for years, the wealthy are the job creators, and the shakers and movers. They are the engines of commerce, and giving them the well deserved tax breaks is all part of that system, so they can create more jobs and lead the USA to greater things.

        You want addicts running the engines of the economy? If you ask me, a bunch of addicted job creators are much more of a threat to the country than some welfare queen or Walmart worker addicted to vicodin.

        • "As we've been told for years, the wealthy are the job creators, and the shakers and movers. They are the engines of commerce, and giving them the well deserved tax breaks is all part of that system, so they can create more jobs and lead the USA to greater things."

          Someone is doing the drugs and we've been testing the poor people and found far less than the national average. It must be the wealthy doing the drugs. Since they are such magical engines of commerce and all that we should obviously seek to be lik
      • Re:Apples-Oranges (Score:5, Insightful)

        by AthanasiusKircher ( 1333179 ) on Friday June 17, 2016 @09:19AM (#52335741)

        Whether you agree with drug testing for welfare or not, there is a bid difference between testing for handouts, and testing for tax penalty avoidance. A complete lack of comprehension of said difference is the most disappointing thing about such a proposal.

        While I think such a proposal will never be implemented, what is most disappointing to ME about this discussion is the lack of comprehension of justice and fairness in economic systems. Instead, everyone seems to be acting like there's some sort of strict demarcation between "my money" and "the rest of society," when in reality society is necessary for you to make your money, to profit from your skills, and to spend your money on goods that make you happy.

        Your perspective fails the basic "Justice as Fairness" doctrine espoused in one of the greatest works of political philosophy and ethics from the 20th century, John Rawls's A Theory of Justice [wikipedia.org].

        Rawls begins with the idea that we should design a moral economic and political system behind a "veil of ignorance," i.e., not knowing what value our personal skills and abilities may have to society. After all, you may have been born with innate skills that make you rich in one society, but in another you might be the stupidest or least talented person alive. It's only by imagining what's fair to that latter person that we should make decisions about how to structure things.

        Rawls ultimately comes up with what to me seems to be a pretty darn insightful idea about fairness -- which is that obviously inequality benefits us all in a society. Smart people may get rich by inventing cool stuff, and by doing so, they bring up the standard of living of all of us. Thus, a just society needs to allow them an incentive (e.g., more money) to promote our collective well-being.

        But, Rawls says, the point at which we stop that inequality is when the extra money for the rich stops benefitting the society as a whole. At some point rich people just get more and more wealth, but it doesn't actually help the poorest to improve their quality of life (and often begins to make the poorest WORSE off). And again going back to the veil of ignorance, if you didn't know what your talent would be before entering in a society (and you might have ended up on the bottom), you probably would say that's not fair for all. Collectively, we need to design the rules to benefit us all, because rich people don't exist in a vacuum.

        So -- going to the present proposal, the question becomes: We've apparently decided that we want to drug-test the poor to ensure that society's resources will be used well. If we agree to that, why not tax the rich before giving them a tax break?

        Rawls would say that the question should be rephrased in terms of social benefit -- no one has a "right" to be taxed according to a difference scheme. There's no "inalienable right" to have capital gains taxed at a lower rate than other income. So, we have to ask -- by allowing rich people to buy drugs with the money from their tax break, do we actually benefit society as a whole? If you woke up in a society and just happened to be the stupidest and most untalented person, would you think that was a fair thing to grant rich people to improve society as a whole? Or would it be wasting resources on a rich-people tax break that could be used to actually benefit other people?

        Again, I don't think this is a practical proposal. But in terms of justice and fairness, I think you're asking the wrong questions. "My money" does not exist in a vacuum. You get to live your life through the benefits of the rest of society. You have no inalienable rights to whatever complex set of tax deductions you'd like.

        • "My money" does not exist in a vacuum. You get to live your life through the benefits of the rest of society.

          I don't think you or Rawls quite understood what money is.

          Once upon a time, people had to live on their own. They had to grow and harvest their own crops, hunt their own meat, tan and sew their own clothes, build their own shelters, make their own tools, treat their own injuries, etc. This was hugely inefficient because of the massive number of skills you needed to learn, and the rapid multi-ta

    • Personally, I'm not for drug testing anyone unless it's part of a criminal investigation or unless they are in a job where they are responsible for other people's safety.

      You mean like people in charge of large banks and financial institutions?

  • Congress (Score:5, Insightful)

    by Major Blud ( 789630 ) on Friday June 17, 2016 @08:06AM (#52335165) Homepage

    I think the best place to start would be mandatory drug test for Congress.

    • Re:Congress (Score:5, Interesting)

      by Kierthos ( 225954 ) on Friday June 17, 2016 @08:28AM (#52335307) Homepage

      I'm all for this.

      But why stop at drug testing?

      If you want to be on certain committees, you have to pass a test of some sort, so we can get rid of the thundering idiots who think science is of the devil, yet sit on one of the science-based committees. Or if you want to be on one of the finance committees, you have to at least show basic understanding of economics.

  • Seems Reasonable. (Score:5, Insightful)

    by fuzzyfuzzyfungus ( 1223518 ) on Friday June 17, 2016 @08:07AM (#52335171) Journal
    Obviously, the correct approach is "Don't drug test anyone outside of performance critical situations"; but this proposal seems like a reasonable way to point out one of the (numerous) ways we identify some people as presumptively scum until exhaustively proven otherwise; and others as presumptively guiltless until they really screw up(at which point the loss of standing caused by the case is punishment enough...)

    Also worth considering that, even if you hate filthy poor people and criminals and such with a righteous passion; people nobody cares much about tend to be the beta testers for bad ideas that will eventually come to be imposed on the more 'respectable', usually starting with the ones that have less economic leverage. In this case, that's already mostly happened: mandatory drug testing of employees is pretty widespread, even in areas that aren't safety critical, and for metabolites that tell you nothing about the user's impairment on the job.

    As a heuristic, you could do a lot worse when evaluating a law than asking "Would I approve if this law were applied to people I sympathize with?"
    • Re: (Score:3, Insightful)

      by The-Ixian ( 168184 )

      Yeah, I recently went through an entire interview process at a major corporation, got an offer, accepted, passed the bg check and then failed the drug test.

      I toke up from time-to-time, but it had been almost a month since I had last done so.

      It is their loss. I am a good, competent worker and I would have been a good fit for the team.

      I hope that my type of statistic isn't overlooked by HR departments who are always struggling to employ qualified talent. There are plenty of people who puff a little on their o

      • I'm not in favor of more drug testing; but my impression of the bill was that it wasn't actually looking to advance its stated agenda; but to emphasize how much we put up with the current state of affairs only because it targets irrelevant people that nobody likes, rather than gunning for recipients of tax credits who actually count.

        Sometimes, when a bad policy has been hanging on by selectively targeting those least able to do anything about it, arguing for its expansion can be the most effective way of
  • Even better (Score:4, Insightful)

    by drsmithy ( 35869 ) <drsmithy@gm[ ].com ['ail' in gap]> on Friday June 17, 2016 @08:18AM (#52335243)

    Drug test their children.

  • by 140Mandak262Jamuna ( 970587 ) on Friday June 17, 2016 @08:34AM (#52335355) Journal
    Yes, tax deductions are government handouts. Their recipients should be tested for drugs and have some limit on how long a particular tax break one can enjoy.

    Ideally all forms of income earned income, interest and dividend income, capital gains, carried interest, partnership distributions, profits, gambling gains, IRA distributions all should be just treated the same way. Ordinary salaried folks have no ability to reclassify their income streams. They have limited ability to defer income. But the top 0.1% earners can create shell corporation after shell corporation, trusts etc. Each acting as a way to defer income, change its category etc.

    One concession I would agree for capital gains is to let people adjust their cost basis for inflation. This will help people who buy and hold rather than short term investors. Reduce volatility and provide stability to the instruments.

  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Friday June 17, 2016 @08:47AM (#52335445)
    Comment removed based on user account deletion
  • by XNormal ( 8617 ) on Friday June 17, 2016 @10:24AM (#52336375) Homepage

    There was a question on some forum (perhaps AskReddit) for formerly poor people about what surprised them the most after they became better off.

    One poster claimed that he was surprised people with more money actually do drugs for recreation. Everyone where he grew up that used drugs did it to soothe the pain. Everyone knew it. Everyone also knew the price. And those that chose this way were not judged too much.

  • ... or at least the "gain" should be indexed to either gold or silver (government's choice - but in advance of the period during which the so-called "gain" occurs).

    The "capital gain" of the tax code is actually a PRICE gain measured in dollars. The value of the dollar is under the control of the government (via its proxy, the Federal Reserve), and is systematically lowered ("inflation"). So an asset whose value doesn't change at all nevertheless suffers a "gain" in price, which is taxed. (An asset whose actual value does rise still suffers an additional "gain" in price, and one whose value falls doesn't start to show a "loss" unless the loss in value is more than that of the dollar.)

    This means that the government not only steals the value out of money held by printing more of it, for itself and its cronies, diluting the supply, but it also steals a portion of the value of any other property held by someone between its purchase and its sale. Thus the "capital gains" tax is an additional incentive to inflate the currency and rip off the general population for the benefit of the government officials, functionaries, and their cronies.

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