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.
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.
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:
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 $42,500The number of people in poverty in 2009 is the largest number in the 51 years for which poverty estimates are available.
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.
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:
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
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
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
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!
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.