This is a bit of a logic trap for me... I understand how things were prior to 1980, and I know "fair taxation" is the key to a successful society. However it has been tricky for me to tackle this position.

Any input is appreciated.

Toa.

Comments

Caleb's picture
Caleb 8 years 8 weeks ago
#1

Let me take a stab at this.

I'm not an economist, but some simple facts apply here.

By the logic you suggest, reducing taxes on the top two percent benefits the average wage earners -- and how has that worked out in the last 30 years? Taxes are the lowest on the top percentile than they have been since before the great depression, but I'm not feeling any great uplift here.

From my perspective, raising taxes on the top several percent (and probably other percentiles as well) will allow government spending to insure a safety net for all of us, will help with transportation, education, etc. Cutting taxes on the richest Americans will have the opposite effect.

In addition to cutting taxes, we have to have other reforms (returns to previous practices) in our country, including: anti-trust activities to break up the big monopolies, a return to controls on the banking and investment systems (restoring Glass-Steigel and overturning the "Commodities and Modernization Act" put in place by Graham et al.), restoring appropriate tarrifs and taxes on imports, recognizing that those who export American jobs are not doing this country any favors (and certainly eliminating the tax benefits they get for off-shoring jobs), and, among other things, tax fairness.

Under Eisenhower the top marginal tax rate was 91%. Now the top rate is 35% (and no one pays that, because of deductions, the top rate on passive investments being 15%, etc.) and we have the most unequal distribution of wealth of any of the major countries of the world. The middle class is falling into the pit and we are becoming a have and have-not society.

This trickle-down approach has created a nation of pee-ons for all but the wealthiest among us.

A final point is that this current taxation system is not only cruel but it is unsustainable. And those who will suffer will know who to blame.

Yours,

Caleb

T Reap's picture
T Reap 8 years 7 weeks ago
#2

Thanks Caleb - That makes sense... I agree with everything you said. I knew that raising taxes on the top 2% and the mega corporations actual taxes paid was the way to go but was not aware of the anti trust law issue or the impact of the repeal of Glass-Steigel etc... As usual, there is much more to the story.

We have really been taken to task by these Righties the last 30 years. I hope our country starts waking up to the fact that, unless you're in the top 2% - Republicans have nothing for ya. Nothing.

Again, I truly appreciate the feedback - Regards.

Dan4liberty's picture
Dan4liberty 8 years 7 weeks ago
#3

Let me put some facts on the table, written by someone on this site, that I know for myself before it was written by him. Supplysiders lie about these facts all the time.

Why did your Saint Reagan TRIPLE the national debt from $1 to $3 Trillion?

Why did Reagan preside over the largest tax decrease in 1981 and then and then turn around in 1982 initiate the largest tax increase in US history, of which two-thirds was an increase in business taxes.

Why did Bush Sr. almost double the natl debt to $5 trillion?

Why did Bush Jr. Double the natl debt to $11 trillion?

Why did Reagan give amnesty to 4 million illegal’s?

Why did the Republicans pass the Medicare Part D Pharma giveaway in 2003 that will cost more than the Bank Bailout, Obama's Stimulus and ObamaCare--- COMBINED!?

AND: Why do so few Right-wingers know these facts about Reagan and the GOP leadership and why does the media never mention them?

"Why do Red Conservative states use MORE money from the Feds than they pay in; while Liberal Blue states pay more in taxes than they get from the feds."

"Why was the GDP 4 times higher,( with half the unemployment), in the 1950's with a 92% top tax rate, than it is now with a 35% top tax rate?"

or "Why was the middle class growing so fast in the 1950's with a top tax rate of 92%, when it is shrinking today with a 35% top tax rate on the rich? "

T Reap's picture
T Reap 8 years 7 weeks ago
#4

Excellent points.... First let me be clear... I'm a strong Progressive. To address what your question of Why/how are they able to get away with that? Because it is not in the best interest of for profit media to report on those issues.

All about the bottom line ya know.

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