THIS IS THE FINAL post in a series on fixing the deficit and getting us out of this Republican recession.
You are going to be told a lot of lies before all this is over.
You are going to be told that the deficit is so big that it can't be cured by tax cuts alone.
You are going to be told that the middle class has to take the hit, because that's the only way out.
It's all nonsense.
There was a time, not so long ago, when America was America and the American Dream was still alive for everyone.
A time when any student who was willing to put in the work could afford a good education.
A time when a hard-working family could count on the future getting better.
A time when our corporations and products were a standard of excellence worldwide.
That world did not sink under it's own weight.
It was intentionally dismantled, by a handful of very wealthy people, who advanced a series of changes to undermine the American dream for everyone but themselves.
There are other wealthy people who are not in on this, and who do not agree with it: Bill Gates Sr. and Jr., and Warren Buffet among them—who were against extending the Bush tax cuts for the wealthy.
But the people I'm talking about have been, for the last fifty years, pushing an endless program of tax cuts for the very wealthy and for corporations.
They have cut the top tax rates for individuals by 61% over that period. They have cut the top tax rates for corporations by almost half.
Who do you think took up the slack?
You might believe that they did this out of pure greed—that they simply wanted to save some money—but they didn't.
They quite intentionally set out to bring us to the point we are at right now—the point where they can make the case that the only way to balance the federal budget is to do two things:
- Cut back on the ability of our government to enforce standards on corporate power.
- Squeeze the middle class until we can't fight them anymore.
Why do you think their propaganda arms—Fox Television and right-wing talk hosts—always jump down the throat of anyone who wants to talk about "class warfare"?
It's because their upper class masters have been warring against the middle class for over fifty years, and they don't want us to notice.
The extension of the tax cuts for the wealthy is only the latest move in this battle.
Think about it: we were talking about a few percentage points in the tax bracket of people who make over a quarter of a million dollars a year, and Republicans were willing to put everything else on the line to keep that from happening.
It would have made it possible to close the deficit without cutting programs that children, and old people, and disabled people, and the vast majority of the working people in this country depend upon for survival.
Why in the world wouldn't those who have more money than they could ever spend be willing to pay a few percent more taxes to save their homeland?
Because it wasn't about the money—it was about destroying those programs, raising taxes on the middle class, and bringing your government to its knees, so that you couldn't hold them accountable anymore.
But the fight isn't over yet.
They only got a two year extension, and the proposals I've been making for balancing the budget can still be carried out within the next three years.
Here's the final eight, which are all aimed at addressing the slow strangling of the budget and the middle class I described above:
- I allowed the Bush tax cuts to expire for brackets over a quarter of a million dollars. (Savings: $115 billion)
On average, this would effect about 2% of the household income of the top 2% wealthiest Americans.
The alternative is much deeper and painful cuts for all Americans, especially those who work the hardest and can least afford them. - I extended the payroll tax above $106,000. (Savings: $100 billion)
Right now, those earning more than $106,000 don't pay Social Security or Medicare taxes on any money they make above that amount.
This would restore that ceiling to one which is more in line with the original plan. - I levied a "Millionaire's Tax" on incomes above one million. (Savings: $95 billion)
Under this plan millionaires, who can easily afford it, would be taxed an additional 5.4% on everything they made over a million.
This, like the rest of today's list, is a very minor move toward fixing the damage that has been done during the last fifty years. - I eliminated some tax loopholes, but kept rates slightly higher than the Bowles-Simpson plan. (Savings: $315 billion)
Eliminating the tax loopholes was a good idea, but why in the world would we then lower the taxes to undo the gains—particularly, why would we lower corporate taxes even further than they have been lowered in the last fifty years? - I reduced mortgage deductions for high-income households. (Savings: $54 billion)
The mortgage deduction is there to help middle-class families afford a home, but most of the benefit goes to upper-class families, who buy the most expensive homes.
This would keep the deduction for those who need it, without giving a disproportionate deduction to those who don't. - I refuse to implement a national sales tax. (Savings: $0)
The whole point of a sales tax is to tax the people who have to spend their income without taxing the people who have so much they can save it—thus increasing the gap between the rich and the middle class. - I implemented a carbon tax. (Savings: $71 billion)
Common sense. Corporations that pollute the environment should be encouraged not to.
Meanwhile, the money will help us to control the deficit. - I implemented a bank tax. (Savings: $103 billion)
The idea here is that we regularly end up bailing out the banks, because they are so big and persist in such risky behavior.
So we tax them on their size, and on the risk of their policies, which discourages both and makes puts our government in a better financial system in case they manage to do it again.
That's it.
The approach I've outlined above would not only deal with the deficit while helping us get out of the recession, but it would also begin to turn the country around for the long run.
We can rebuild the American Dream.
Our kids can look forward to being better off than we were.
The economic policies of the greatest generation can be restored.
At least, that's what I think today.
