Midcoast Peace & Justice Group
committed to positive change through non-violent action
But wait (excerpt from a Robert Reich article)
Jerry suggests you substitute the word "citizens" for "Democrats" when you read this. (We are all responsible.)
. . . The bottom 90 percent of Americans now earn, on average, only about $280 more per year than they did thirty years ago. That’s less than a 1 percent gain over more than a third of a century. Families are doing somewhat better but that’s only because so many families now have to rely on two incomes.
But wait. The American economy is more than twice as large now as it was thirty years ago. So where did the money go? To the top. The richest 1 percent’s share of national [income] has doubled – from around 9 percent in 1977 to over 20 percent now. The richest one-tenth of 1 percent’s share has tripled. The 150,000 households that comprise the top one-tenth of one percent now earn as much as the bottom 120 million put together.
Given this explosion of income at the top you might think our tax system would demand a larger share from them. But you’d be wrong. You’re not taking account of the power of the super rich. As income and wealth have risen to the top, so has political power. As a result, their taxes have plummeted . . .
So who’s going to foot the bill for everything we need? Even before the Great Recession, the middle class’s share of the nation’s total income had shrunk. Yet their tax burden had grown. They were paying a bigger chunk of their incomes in payroll taxes, sales taxes, and property taxes than decades before . . . Then came the Great Recession – and with it, lower tax revenues. That means all levels of government are squeezed. Obviously, the middle class can’t pay more in taxes. But because the Democrats seem to lack the intestinal fortitude to suggest the obvious – that taxes need to be raised on the super rich – we’re left with a mess . . .
Here’s what Democrats should be saying:
Hike taxes on the super-rich. Reform the tax code to create more brackets at the top with higher rates for millionaires and billionaires. Absurdly, the top bracket is now set at $375,000 with a tax rate of 35 percent; the second-highest bracket, at 33 percent, starts at $172,000 for individuals. But the big money is way higher.
The source of income shouldn’t matter – salary, wages, capital gains, other unearned income – all should be treated the same. There’s no reason to reward speculators. (Don’t penalize true entrepreneurs, though. If they’re owners who have held their assets for at least twenty years, keep their capital gains low.)
And while you’re at it, raise the ceiling on income subject to Social Security taxes. And bring back the estate tax.
Do this and we can afford to do what we need to do as a nation. Do this and you prevent Republicans from setting the working middle class against itself. Do this and you restore some balance to a distribution of income and wealth that’s now dangerously out of whack . . .
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