Over the last 30 years we have been
indoctrinated into believing that redistribution of wealth was a black mark
against the American Dream, capitalism and the world of free markets. It caters
to the notion that “taxation is a form of punishment for success” and
that we tax the wealthy for the sole benefit of ‘freeloaders”. The
wealthy are the “job creators” has been bellowed from the highest mountain as if
it should alarm us to impending doom. The reality is that there has been a
redistribution of tax liability from the wealthiest to the bottom 95% and our
revenues have plummeted to unsustainable levels.
Americans are the most productive workers
in the world. Our productivity has realized a steady rise over the last couple
of decades and yet our median income has remained flat and is now on its
decline. All of the benefits and profits of our increased productivity have
benefitted the top. Apparently we have not “earned” it and they did. We
are not in control of the levers that give or deny us a raise even for
consistent excellent performance. The business model of ‘pay for performance’ is
largely a ruse. Those that have benefitted the most are the ones in control of
this distribution of wealth.
They are the same people in control of
the redistribution of tax liability via our tax policy. Our country’s
‘progressive’ tax code has realized a flattening of the tax structure because of
a tax code that most Americans do not have access to. Different laws for the
different classes. The tax cuts for the wealthiest on the federal level have
resulted in the shifting of tax liability to the states and then on to
localities as federal dollars dry up. I can remember Lowell Weicker falsely
reassuring us that our new state tax was only a ‘temporary’ measure. That
was twenty one years ago.
Simple math now escapes our congressmen.
If we cannot tax the bulk of American wealth, who will pay for a necessary
government? One can easily make the argument that we are on a slippery slope to
fascism. Corporate power is palpable in all facets of our government and our law
making process.
Let me say this out loud. I am a job
creator. The 95% are the job creators. We collectively create the demand that
generates production of goods and services. Starving us is what is starving our
economy. The only mechanism to retrieve our fair share of the productivity
advances is to tax the top at an appropriate tax rate. If those in control feel
our excellent performance does not warrant financial reward, then we should at
least compel them to help adequately fund our government and lessen our burden of taxation. When
it becomes acceptable that an hourly wage worker should pay a higher effective
tax rate than a multi-millionaire, something has gone wrong with the system.
America needs to redirect the
conversation from the misappropriated and inaccurate catch phrase of
redistribution of wealth and focus our attention to the distribution of wealth
and redistribution of tax liability. These are the true killers of the American
Dream.
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