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In 2009, only 1,198,412 Americans earned more than $250K !!  The meme "it will hurt small business owners is shear bull shit!  There aren't very many of them.

Reagan's Dawning Damned Us! Here's the history of tax rates for the 1%:

In 1982, their TAX HOLIDAY BEGAN.

90%  The tax rate, 1944 - 1964, The Greatest Generation Shared the Sacrifice to pay off the post-WWII debt AND provide a good life for the majority of Americans, Then Lyndon Johnson dropped the tax on the 1% to

70% where it remained until it dropped to

50% in 1982.  Not good enough!  It dropped AGAIN to

38.5% in 1987.  Still not good enough.  It dropped AGAIN to

28% in 1988!  Bush I, increased it to

31% in 1991, Clinton increased it to

39.6% in 1993, and Bush II dropped it AGAIN to

38.6% in 2002.  Still not good enough.  Bush II dropped it AGAIN to

35% in 2003 where it remains.

Why aren't the Democrats framing the issue and asking:

"How will Increasing the tax rate by a mere 4.6%, for only 1,198,412 people, prevent job creation?"  

I say Frig that!  Increase it to 70% again and 90% for those earning more than $10,000,000 a year!  It would stop these damn bubbles just like it did for decades.  Well, along with reinstating Glass-Steagal.

Why continue the 30 Year TAX HOLIDAY that only those earning over $250K have enjoyed?

In this diary we will explore three things:

1.  The Tax Rate History of High Earners (See above):  Do they pay too low a tax rate?

In 2009, this Table shows that only 1,198,412, a mere 1% of all wage earners, earned over $250,000.  The percentage of all workers is found in the fourth column.

Taxes-  Earn More Than $250K

2.  The plight of most American workers, the low wage, part-time road to poverty.

3.  Boycott the Behemoths:  We can force the hand of the greedy behemoths.  Starve them like they seem to feel fine about doing to their employees and the overseas slaves that make their crap.

Review this November 15, 2010 Federal Wage Report for a clear picture of the percentage of workers for each wage level.  

 In 2009, here's the above-referenced Federal Wage Report in chart form. It's easy to see that there is a huge difference between what the majority earn and what the 1% high earners earn:

Taxes Median Income

It is really important to note that:

The Median Income in America has hovered around $25,000 since the 1980s.  In 2009

40% of American's earned less than $20,000/year;

50% earn less than $26,000/year; and

71% earn less than $42,000/year.

50% of households earn under $42,500

The number of people in poverty in 2009 is the largest number in the 51 years for which poverty estimates are available.

1 in 4 Americans require food assistance:  17 Million!



Here are the tax rates that will kick in for 2011 onward, if the Tax Cuts are allowed to expire.  Of course, there are many other factors other than the tax table.  For simplicity purposes, may we please keep the discussion limited to these.  

The Tax Rate History is our friend.
It clearly indicates, Congress has had no problem changing the tax tables over and over again, especially during the 1980s.

Tax Rates:  2000 Pre-Cut Rates

Here are the tax rates for 2010 that will sunset this year.  These rates include the tax cuts Bush II enacted in years 2002 and 2003 as seen in the introduction:

Taxes-  2010 Tax Rates

The High Earner Tax Holiday began in 1982 and continues to this day.  

Because of this 30 Year Tax Holiday for High Earners, America has not had the revenue

to maintain it's antique infrastructure;

to modernize its decaying infrastructure;

to provide a carbon-reduced energy infrastructure;

to provide world class education for all qualified students;

to provide preventative health and dental care for all, or in short;

to do little other than tread water, FOR THIRTY YEARS; and

Worse,

to crumble and decay;
to imprison 1% of it's population, those neglected children with few prospects;
to poorly educate its K-12 children;
to have 1 in 4 facing hunger;
to allow corporations to run the show because they are the only ones left with money.

All while we are asked to sing:

"We are the greatest country in the world, we're number one."

America is the land of the poor in 2010.

Will we fix her?

Are their enough Patriots willing to do their part?  to pay their fair share?


Progressive tax rates are the Right Thing to do and work best when applied to all workers.  

Below are some clear pictures of how America's progressive tax system has changed over the years.

In reviewing these two snapshots of tax history, it is really important to realize that, for the most part, the income brackets of the lowest three or four categories represent approximately 70%-90% of the working population.  

Try not to let the dollar amounts play a role in the analysis as they are subjective to so many variables over time, such as cost of housing, etc.

It could be easily argued that low rates on the highest earners promotes speculation and greed.  Look at the year 1929, the end of the 1925 - 1931 RECORD low high wage earner tax rate of 25%:  The HUGE Tax Holiday preceding the Great Depression:

Here's the 1929 Tax Rates the year the Great Depression was launched.  

1.5% $0 $4,000
3.0% $4,000 $8,000  
5.0% $8,000 $10,000
6.0% $10,000 $14,000
7.0% $14,000 $16,000
8.0% $16,000 $18,000
9.0% $18,000 $20,000
10.0% $20,000 $22,000
11.0% $22,000 $24,000
12.0% $24,000 $28,000
13.0% $28,000 $32,000
14.0% $32,000 $36,000
15.0% $36,000 $40,000
16.0% $40,000 $44,000
17.0% $44,000 $48,000
18.0% $48,000 $52,000
19.0% $52,000 $56,000
20.0% $56,000 $60,000
21.0% $60,000 $64,000
22.0% $64,000 $70,000
23.0% $70,000 $80,000
24.0% $80,000 $100,000
25.0% $100,000

Let's look at 1935 for an example.  All wage earners used the same progressive tax table.  Certainly there were fewer moms working, but there were still millions of single people/women working.  Notice that most wage earners did not pay more than 4% in Federal taxes, and that was a considerably higher rate than the prior 1920s decade:

Now look at the 1935 Tax Rates when median income was under $8,000 a year.  This is why they hated FDR.  This is when the GOP morphed into the Anti-Tax mode.  This is when ruinous speculation stopped until the 1980s when the Reagan/Cheney/Rumsfeld/Bush/Rove/Norquist Gang of Anti-American fascists took the reins of our government followed by the Clinton/Greenspan/Ruben/Summers free-market gang of neo-liberal economists:

4.0% $0 $4,000*
8.0% $4,000 $6,000  
9.0% $6,000 $8,000
10.0% $8,000 $10,000
11.0% $10,000 $12,000
12.0% $12,000 $14,000
13.0% $14,000 $16,000
15.0% $16,000 $18,000
17.0% $18,000 $20,000
19.0% $20,000 $22,000
21.0% $22,000 $26,000
23.0% $26,000 $32,000
25.0% $32,000 $38,000
28.0% $38,000 $44,000
31.0% $44,000 $50,000
34.0% $50,000 $56,000
37.0% $56,000 $62,000
40.0% $62,000 $68,000
43.0% $68,000 $74,000
46.0% $74,000 $80,000
49.0% $80,000 $90,000
54.0% $90,000 $100,000
56.0% $100,000 $150,000
57.0% $150,000 $200,000
58.0% $200,000 $300,000
59.0% $300,000 $400,000
60.0% $400,000 $500,000
61.0% $500,000 $750,000
62.0% $750,000 $1,000,000
63.0% $1,000,000

This country cannot economically recover if

Wages remain low and highly taxed, leaving too little for disposable capital; and

High earners don't pay a fair share of the Revenue Requirement to take care of America, to keep Her safe, educated, and healthy.  

IT'S NOT ROCKET SCIENCE.

And, yes, history is prescient.

For 30 years America has been the most poorly managed!

And those who want to argue that point, look around you.  Your arguments are surrounded by homeless, hungry, desperately escalating facts that simply can't be ignored any longer.

Enough with talking points.

Enough Blame the Poor and Unemployed Dogmatic Lying.

And please SUNSET the the lie that 1.1 million people will create jobs if given a miniscule tax break!  They did a great job of creating jobs for decades when they paid 90% tax!

Obviously, the supply-sider, Friedman worshipping so-called Economic Brain Trust not only failed to learn from history, it seems they only improved on eroding the worst practices even further.

Of course America is presently suffering economically.

The last 30 years of economic/tax policies were worse than they were from 1925 - 1931!

This time their ill-advised, American Dream sabotaging, Economic Models insured

That the majority, 99%, would lack sufficient amounts of disposable capital,

While the high earner, 1% mini-minority got A THIRTY YEAR TAX HOLIDAY; and

Permission was given to trade debt as if it were a commodity like corn, which is why the

Impoverished wage earners were enticed/forced to create huge debt!

And NO ONE is addressing the Truth.

The "Should the Tax Cuts Expire for The Highest Earners" is Front and Center NEWS.

It's a false flag.  It's a grain of sand on the beach of America's socio/economic problems.

If the tax code isn't changed to be more progressive for low wage earners, and returned to the post-WWII rates then I am ready to personally welcome you to

THE SUNSET OF AMERICA!

Brilliant.

BOYCOTT:  I have been quietly interviewing employees of national chains.  They are being impoverished by low wages paid by behemoths that are making record profits.  They can't strike because they would become homeless and hungry.  

However, WE can use our power of the purse to BOYCOTT THEM with a loud and clear message.  PAY YOUR WORKERS A LIVING WAGE with full-time jobs and good health care coverage or we won't spend a dime in your places of business.  PERIOD.

______

The Tax Rate History is our friend.

Poll

Will you consider BOYCOTTING low-wage paying behemoths?

45%10 votes
4%1 votes
50%11 votes

| 22 votes | Vote | Results

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Comment Preferences

  •  Better idea (2+ / 0-)

    they have to mine their own coal for their stockings.

    Corporate philosophy for consumers: Work, buy, shut up and die.

    by Philpm on Sun Nov 06, 2011 at 10:15:53 AM PST

  •  Barter X-mas this year (6+ / 0-)

    Make your own gifts.

    DO NOT buy "things" unless it is from local artisans.

    Break the back of the corporate monster that has been stepping on us for too long.

    Education is a progressive discovery of our own ignorance.

    by Horace Boothroyd III on Sun Nov 06, 2011 at 11:07:35 AM PST

    •  I'm running into a fight from people on this one. (2+ / 0-)

      They worry that if we boycott stores we will cause people to lose their jobs. We as Occupiers need to figure out how to address that (like this diary for instance, but way shorter) in the next few weeks.

      Poverty = politics.

      by Renee on Sun Nov 06, 2011 at 01:07:13 PM PST

      [ Parent ]

      •  No, it's like a reverse strike (2+ / 0-)
        Recommended by:
        cynndara, Words In Action

        For 30 fraking years wages have been flat.

        why?

        We let them get away with it.

        Employees can't strike.

        But we can.

        BOYCOTT THE BEHEMOTHS until they

        1.  Hire full-time employees
        2.  Pay a living wage and enjoy lower profit margins and executive pay
        3.  Provide comprehensive health care
        4.  Paid vacations
        5.  Paid sick time

        You know, Renee, the way it was before the evil fiends took over in the 1980s.

        Hell, Nixon was nicer than the Dems are today.

        It's difficult to be happy knowing so many suffer. We must unite.

        by War on Error on Sun Nov 06, 2011 at 02:32:34 PM PST

        [ Parent ]

      •  Boycott corporations (0+ / 0-)

        Not individuals.  Gifts and seasonal entertainment specialities can be bought from individual owner-operators, small businesses, and above all traded for by mutually beneficial barter.  Gift an artisan by commissioning a gift, and two real human non-corporate people benefit.  But at the least, avoid the obvious predators.  Only go to WalMart to buy predatory-priced loss-leader items.  If you walk away with something for less than its total cost to the corporation WITHOUT buying something else to make it worth their while, you've just looted in a good cause.

  •  You forgot the class war tag. Great diary. (2+ / 0-)
    Recommended by:
    War on Error, Words In Action

    We need to figure out how to make this concise for the people who won't read numbers though.

    Poverty = politics.

    by Renee on Sun Nov 06, 2011 at 01:08:31 PM PST

  •  "From those to whom (0+ / 0-)

    much is given, much should be expected."

    Those who earn well above the median income should realize that it is the structure of our society which allows them to prosper, and a higher rate of taxation is merely a fair levy on the higher benefits they have received from that society.  All men are CREATED equal; if some accumulate more than others, it is not because they are of intrinsically higher moral value; it is because the environment in which they exist matches their unique resources, capabilities, and predispositions more than those of others who do not thrive so well.

  •  Effective Tax Rates? (0+ / 0-)

    Could we have in addition to the above tables of nominal tax rates, some comparable data sets for effective tax rates?

    One of the lines of argument for reducing income tax rates over the years, as I recall, was that the rich had accountants that were so good at utilizing the many loopholes that effective tax rates were much lower, and that excessive loopholing was causing unwanted distortions elsewhere in the economy.  Reduce tax rates, we were told, and there would be less recourse to loopholes, which were to be closed anyway.

    How did that work out for us, you Tax Historians out there?

    Yes, I am prepared to be disappointed by the answers.

  •  Even better than boycott, and strait out of Alin- (0+ / 0-)

    sky.

    Go shopping.  Fill the store, wait till the end of the day, and form lines to purchase the cheapest things possible.

    Then return them the next day.

    Rinse and repeat.

    Perfectly legal. The bad guys have to break the law to stop you.  Might be best to make sure no one in your crowd is wearing anything that would identify them with OWS, but let it leak to the management that this just might be the case.

    Politics is the entertainment branch of industry. -Frank Zappa

    by TheGrandWazoo on Mon Nov 07, 2011 at 10:00:30 PM PST

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