We are the 99.9997%!!

November 5th, 2015 at 8:21 am

If you’re someone who worries about ample revenues to meet the challenges we face now and in the future, or you think we have enough market-driven inequality without the tax system making it worse, then you cannot be especially sanguine about the tax plans of the R’s running for president.

But Sen. Rubio’s plan, which zeros out capital gains and dividend taxes–income sources disproportionately held by the wealthy–is uniquely egregious in both of these senses (revenue and distribution). Over at WaPo.

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2 comments in reply to "We are the 99.9997%!!"

  1. Smith says:

    Two points ignored at great peril.
    1) Tax cuts for the rich are sold with tax cuts for the middle class and poor. This is extremely powerful and politically effective. People are less concerned about whether the ultra rich save millions of dollars and cut their effective tax rate to less than theirs or even low income earners if they are going to save a buck. They are less concerned about cutting services, decaying infrastructure, effects of climate change, eventual fallout from deregulation when promised the immediate gratification of tax cuts.
    2) The extra benefits for the poor are real, and give cover to both Democrats and Republicans who gut government programs, raise deficits, and ensure a labor climate of stagnant wages and decline. Reagan and Bush II created and raised the EITC for just this purpose, which robbed middle class Peter to pay low income Paul. A better solution was raising the minimum wage which comes out of the pocket of business instead of the taxpayer. A while back when I suggested raising the minimum $2.50 could entirely supplant the benefits and obviate the need for any EITC program, that kind of increase looked like a pipe dream. No longer.

    The way to counter the appeal of low taxes (who doesn’t want to pay less taxes?) is to offer real benefits, universal benefits, for the tax dollar. Don’t needs test higher education, make it free and universal. If you tax the rich to pay for infrastructure which tightens the job market, everybody gets a raise. Not just the highway workers repairing roads, our fluid and flexible job market means hiring any worker helps all workers. Same is true for ending the exploitation of immigrant labor (which the Democratic bill expands instead of ending).

    Other essential elements are the ideas of making the rich and corporations pay their fair share, they pay less taxes for doing nothing. Why should a working stiff pay higher rates than the rich fella clipping coupons?

    Keeping taxes on lower income instead of negative income taxes keeps pressure on raising wage rates instead of relying on government handouts.

    Finally, Democrats must do a better job in accountability. Why pay taxes, especially higher taxes, if the money is wasted? The stereotype of government waste and inefficiency is too often true. Rarely are Democrats leading the charge. Jimmy Carter promised to cut waste and instead we mostly got deregulation. Obama’s counterproductive Federal wage freeze is not cutting waste.

  2. SeattleAlex says:

    At what amount of stocks/bonds do rational people start to consider supporting this kind of candidate/plan purely out of economic self-interest. 23.8% is no joke…