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What if we raised income taxes on the top 1% several percent with a sunset clause not tied to a year, but based on achieving a certain state unemployment rate.? Perhaps 4.9%?
Work that through sometime soon, please?
It depends on how much you make.
Bloomberg just published the top income estimates for 2013. It is 1928 all over again….
“the top 300 seeing their collective net worth rise by US$ 524 billion to US $3.7 trillion as 2013 ended,”
Were we to raise taxes on just that increased amount by only 1%…. we’d could cut our deficit by $5 billion dollars. Five billion dollars on the other hand, would pay for 16.7 million weeks of $300 Federal unemployment payments. 1,260,400 are currently waiting on Congress to pass an extension.
Twelve weeks of all their benefits could be covered by a 1% increase of taxes just on 300 people…. How badly will this hurt them? Well, it would be as if you were selling lemonade on the corner for $1 a glass, and some kid only had 99 cents. Sure, you’ll sell it… Point is that $5 billion dollars equals only one penny to these guys…
So why not take 2 pennies? Really? No one pays $1 anymore. Everyone pays 99 cents and discount stores start at 98 cents…
Two pennies would fund unemployment for 24 weeks… Will you take 97 cents for a glass of lemonade? Gee, 36 weeks, Done. Covered… How about 96 cents for an ice cool cup of sweetened Lemonade? Let see, it’s cost is only 16 cents per cup, so.. why not? Done! 48 out of a year’s 52 weeks, covered. Accomplished! Just like that…
And with no bump to deficit either…
You are smart enough to figure what to do next.
As with every year there are lost opportunities and lost grievences… Some things that have bothered us, disappear. Somethings that have bothered us, don’t….
This year was no different, and yet, it was very different…. If one asks oneself what was the greatest factor involving the entire year, then pulls back layer after layer until he gets the full perspective, I think he comes to a surprising conclusion….
This year, 2013 was the tipping point. We realized we are a third world nation when it comes to the proportion of wealth across our population…. Like global warming, this disparity was first proposed long ago. Like global warming it was argued by the power brokers that such a proposal was only a crackpot’s theory; it gradually gained momentum….
2013, brought that home…. In 2013, we had the party of the Teas, vote against giving New Jersey relief for Hurricane Sandy, and vote themselves relief when a little hail landed in their district…. In 2013, we had government shut itself down to stop Obamacare, then open itself without creating any change at all. In 2013, we had unemployment benefits cut, then reinstated, and now cut again… We had food stamps cut. We had a sequester go into effect to save $85 billion dollars….
We had the news media lead fake scandals… when the biggest scandal should be, how is Fox and CNN and CBS still able to call themselves news organizations? We had the IRS scandal… despite that they dealt evenhandedly with groups of both political persuasions. We had the Benghazi hearings… Much ado over absolutely nothing… For when it came down to why those four died, all fingers point to that very Congressional committee led by Republican Darrell Issa, which cut well over $100 million in funds that were specifically designated to secure advanced unsecured places of that type.
But when we had a real scandal, which was illuminated by Snowden, all the media shied away. Calling him a traitor for releasing the documents… As more came out, Americans began to really fully grasp the totalitarian phase our nation’s government was just on the threshold of achieving….
In 2013 we had civil right voting laws thrown out by the Supreme Court, and instantly all those dark ugly human traits those laws previously regulated, took over and sprang out into the open…
We had a rational push for gun control, that bumped into the irrational group against it. We did not win the first battle… WE did make considerable ground and showed the NRA was led by psychotic bloodthirsty killers, both nationally and locally….
And the unions… are all bought out… from the top down. Only those on the very bottom in our service industries, the Wal*marts, McDonalds, and retail outlets, who have nothing to lose, are bravely carrying the fight forward… They are on the right track…
Our sole problem in America is that out of every dollar that trades hands in our economy…. 50 cents of it gets sucked out by the top 1%…. The rest of America is economically playing with a half deck…50 cents on the dollar. No wonder job growth is slower than it should be?
If you invested, you love this year…. The year’s DJIA started at 13,000 and is now at 16,500…. 25% yield…. For every $100,000 you had in stocks… you just made $25,000….
We now realize this was at the expense of the QE 3. The Federal Government is lending the large brokerage houses all the money they wanted at zero interest, and instead of creating jobs, it went right into the stock market, chasing prices and making them higher…. When that free money begins costing the brokerage houses… those investments are going to deflate.
Most of America no longer has money in the market. The market is primarily owned by those at the top.
And education? We had corporate America exposed for trying their hand at teaching little children and failing miserably. Just as Corporate enterprises have now destroyed Facebook, television news, and are now destroying Twitter, the same forces demolished education. An attack on the public school system aimed to demolish it and install a privately owned system, is well underway…. It was all just theoretical until 2013.
The prime problem behind all of these?
It took a new Pope to make it mainstream… To tie all these individual threads into one rope. As he spoke, people turned to look at each other and said, ” Wow, why didn’t we see it before?”
When one homeless person dies on the streets it is not news. But the DOW drops two points, it is THE news….
What 2013 did, was bring to light that we were not a nation beset by little battles… Loss of labor unions, stymieing of minimum wage, fierce lobbying against Obamacare, a court controlled by corporate interests, lobbyists writing all our nation’s bills, What 2013 did was bring to light that all our “think tank” research, was pure propaganda, not research. What 2013 did, was show us just how much power and wealth lie in the hands of very few people…. roughly 100,000…… with most of that being held by a core of 1000 individuals…. Meaning 314,899,999 of the rest of us are out in the cold…
2013 showed us that the happiest people in the world, are those where wealth is more equally shared… to be happy, one has to tax heavily… A sharper sense of wealth is gleaned from looking at happy societies… Where there is enough wealth to be shared, it is… It makes little sense to pursue the opposite tack. To let those with money have it at no cost, and charge the masses heavily for their use of it…
2013, is the turning of the tide… Now when someone says low taxes are job creators they are viciously humiliated and never dare mention such again. Now when someone says trickle down economics work, we now know they are secretly praising how well it works for those at the top.
2013…. We know.
2014…. No Tea Party. No Republicans. No Third Way. Only by mandating that the wealthy who got rich over nothing, pay their fair share and everyone else’s fair share too, can we again create an economy and a nation that thrives from the bottom up…
2014 is the battle year. This is where those few at the top will throw billions into protecting the trillions they’ve made from our assets… But… they only have 1% of the population… The question is whether they can mobilize their toadies to vote and suppress the rest as they have successfully done in the past… when in truth, we were still half asleep….
The rallying cry for the 99% needs to be this: the 1% needs to do more for our nation!. We should not be ashamed to mention marginal income (including capital gains) tax rates over 50%, 60%, 70%… at least for the short term, until our economic war is over! That is not too much! Most livable nations have such. and the USA itself had such during our grandparent’s time, back when it was easy to go out and find a job…. we had more demand for jobs than we had people….
Income equality is the lens with which all items need to be viewed…. What that means is that with every question, every line item, every debate, this question gets asked…. “What does this proposal do to reverse income equality?” If it does nothing, it is not good…
What does controlling guns do for income equality? What do charter schools do for income equality? What does cutting taxes on Delaware’s 1% do for income equality? What does making the Port of Wilmington non-union do for economic equality? What does creating NO-prevailing wage zones in Delaware, do for economic equality? What does opening Beaver Valley to development do for income equality? What does raising minimum wage do for economic equality? What does Common Core do for income equality? What does opening Family Court to the public do for income equality? What does building a power plant that runs 24/7 on the brown fields of Newark, do for income equality? What does building a new Wawa in Newark, do for income equality?
I acknowledge some of those are stretches but that is what having a prime filter does. One looks at everything through that perspective…. It is one thing to bash the governor for a luckluster economy in his state…. Republicans do that too often, and offer neither specifics, or alternatives. It is another to bash the governor for ignoring 99% of Delawareans’ needs, or 990,000 people, to the benefit of 10,000, or 1%….. That is legitimate….
Hurting the 1% to the benefit of the 99% will cause 99 times more economic activity in this state. 99% of our citizens will buy more…. If those 1% continue to make more money off our localized spending, then at least they are earning their income honestly for a change….
Perhaps what is missing, is a retort, the kind that becomes a mantra……. When the Chamber of Commerce steps up to a microphone and says, …. “we pay most of the taxes in this state, we should not pay more…”.
The proper response hitherto missing, should be…. ” Then pay your employees more money, so they can help you share that burden…”
2013: the arrow was released… 2014 is when it impacts its target,….
(This came out last spring. Most of you have seen this. If by chance you haven’t, be prepared to have your mind blown. If you’ve become jaded since the last showing, prepare to have your mind blown again.)
Hello, hello, is anyone in there?
Nod if you can hear me… is there anybody home?
Get this… tonight as I speak… (or write) there are at the behest of Nancy Pelosi 174 Democratic Representatives who have signed the letter in support of adding unemployment benefits extensions to the new budget about to be voted in….
Without them, everyone who is on extended unemployment, roughly 4.1 million do not receive an unemployment check in two weeks. They are destitute.
29 have at this point, not signed…. Here they are…..
Ron Barber (AZ-02)
Jerry McNerney (CA-09)
Zoe Lofgren (CA-19)
Raul Ruiz (CA-36)
Scott Peters (CA-52)
Susan Davis (CA-53)
Jared Polis (CO-02)
John Carney (DE)
Joe Garcia (FL-26)
John Barrow (GA-12)
David Scott (GA-13)
Robin Kelly (IL-02)
Tammy Duckworth (IL-08)
Peter Visclosky (IN-01)
Andre Carson (IN-07)
Timothy Walz (MN-01)
Collin Peterson (MN-07)
Sean Maloney (NY-18)
Bill Owens (NY-21)
Dan Maffei (NY-24)
Mike McIntyre (NC-07)
Kurt Schrader (OR-05)
Mike Doyle (PA-14)
Pete Gallego (TX-23)
Henry Cuellar (TX-28)
Eddie Johnson (TX-30)
Filemon Vela (TX-34)
Jim Matheson (UT-04)
Adam Smith (WA-09)
Time for your Democratic Nominee for next year’s Congressional election to have a “Come To Jesus Meeting” with his party’s faithful……
233 N King Street, Suite 200
Wilmington, DE 19801
Phone: (302) 691-7333
Fax: (302) 428-1950
Toll-free (877) 899-7872
1406 Longworth HOB
Washington, DC 20515
Phone: (202) 225-4165
“John Carney…. You are receding…. A distant ship’s smoke on the horizon…. You are only coming through in waves…..
You’re lips move…. But we can’t hear what you say!…….”
You have become……….
How does one grow Delaware Jobs?
- Does one say…. Here come here and will shave a penny off the cost?
- Does one say… If you work here, we will bend regulations to cost you less money?
- Does one say… Our productivity is high because our employees are smart?
- Does one say… There is no better place to live on this planet?
If you are good at what you do, you probably try all three…. (If that didn’t set off signals in your brain then step three is not even in the running).
We have strikes against us… We are are the 40th lowest economy, due to our small size… We have 39 bigger economies competing against us.
Any one of which can under-bid us on business taxes and make up the difference by raising their sales tax rate a penny….
So, against this, how do we increase Delaware’s jobs…
Well we’ve tried the carrot… Now the stick. There are businesses already heavily invested in Delaware…. Why not give them the option to write off new building costs?
In it’s simplest and most abstract form, it works like this:…..
Since paying taxes and building something both equally help the economy of the state, it makes no difference and is a simple trade off from the states economy’s point of view, as to whether the money goes directly to the treasury or indirectly, by being invested into new buildings on business properties… Therefore now is the time for businesses to expand, for that expansion can be written off the tax owed to the state…
The initial lost revenue will be returned in part by the taxes on the new jobs, and by taxes on the business transactions that mushroom as a result of this policy….
So as a business owner, you have this choice. You can pay the state and never see that money again, or you can build upon your property, and keep that money invested in the increased value of your assets… When you sell, you recoup the amount you invested so it is not lost revenue; it is not wasted… Plus the expansion now means your yearly net income is higher as well….
But at Delaware’s current abysmally low rates, even allowing the expansion write off, would benefit only a few of the larger, more prone-to-expand, business entities across this state…. Which is why it must be accompanied with a higher tax rates to create shock and awe among the principle players…
Taxes are based on the amount of money left over. Simply put, if there is no money leftover in a business, there is no tax… There is therefore incentive to maximize one’s profits in the field, and then minimize them on paper…. That incentive, creates the expansion that hires people… most particularly those in the construction trades….
Tax increases drove the WWII economy. The post war expansion. The Clinton Revival. And now this year, 2013… States enacting tax increases such as California and New Jersey, are doing much better now than states reveling on their lack of taxation and their lack of regulation…
More is better in this case.
Delaware has one of the weirdest tax state income tax delineations. The percentage climb stops at $65,000…. A person who makes $65,001 pays the same rate as does someone who’s financial empire brings in $65 billion dollars… We have much room to pay with. This year Delaware needs its General Assembly to act and pass a state tax system such as below…. This is just a first draft that will, and should be tweaked by the lobbyists scrambled by the powers that be to do damage control….
$1 Trillion and above…. 15%
$1 Billion and above…. 10%
$100 million and above…9%
$ 1 million and above… 8%
$100,000 and above… 7%
No further changes are required….
As an example New Jersey’s economic stimulus new tax hike rate stands at 8.97% over $500,000…. No one is going to run away from Delaware because of our increased tax rate…. unless they run away in order to pay even more.
Based on sources inside Delaware’s Department of Revenue, this would increase our state’s annual revenue intake by roughly $220 million dollars or about 7% of our current revenues…
What that should mean for every Delawarean, is that there is a very good likelihood that most of this will be invested right back into this state, if a that change in state tax code is made, thereby allowing the complete write-off of all domestic construction on this tiny patch of earth, only 35 miles wide, and 96 miles long…..
If you build on that small patch, Delaware won’t tax you the amount you spend upon the building. Delaware needs to jump on this idea first. Otherwise other states will take even this competitive edge away……
On a different topic, this correlation does show how educational scores directly correlate to poverty… The more luxurious one’s lifestyle is, the more one learns….
That is so common-sensical it is almost laughable that America pursued the corporate get-rich-quick No Child Left Behind Approach and wasted an entire generation of talent, instead of focusing on the obvious. (Notice I said.. almost laughable. None of the Millennials are laughing at it these days.)
But that is not what I want to talk about right now. I want to address the bigger picture… I want to address why the US can’t have nice things too?
I need you to do two things…
- Find the US on the chart above.(The chart enlarges if clicked)
- Ask and answer this question to yourself, “why?”
Mexico, Chile, and Turkey, are the only developed nations having a higher percentage of families below 50% of the global medium income than the US. Now look at some who are higher….
- Slovak Republic
Does anyone remember what these countries were like in the 40’s? Why is it that the United States despite all its opportunities is barely above the status of being a third world nation?
This was reinforced earlier this week by an article using the same title I chose above, which was based off a returning Americans vision of our nation after being in Europe for a while….
It stated something like: imagine what a First World traveler must think after emerging from JFK and riding the New York Subway into Manhattan…..
That was one of those pieces that stick; I’ve been thinking about it ever since…
Why do we as a democracy, totally and fully support those who are pushing us lower and lower down on the global economic scale? What is so great anymore, really, about being an American?
Oh, I wish I could fly to the Canaries for the weekend… But I can’t. I’m an American.
Oh I wish I could hop on the train and see you a couple of hours (200 miles away) but I can’t. I’m an American.
Oh, I wish I could have healthy food to eat, but I can’t. My store won’t sell it. I’m an American.
Oh, I wish i had enough left over to go to the movies this weekend, but I can’t. I’m an American.
Oh, I wish our schools would teach that to our children, but they can’t. We’re Americans.
Oh, I wish someone would fix that damn pothole. I keep asking. But they can’t. We’re in America.
Oh, I wish I had enough money to buy everyone in my family a Christmas present. I can’t. I’m American.
Oh, i wish they’d kept those woods as a park, instead of making more trashy apartments. But, we’re American.
Oh, I wish they’d make that refinery stop polluting. But they won’t. We’re American.
Oh, I wish we could buy food that wasn’t Gentically modified. But we can’t. We’re American.
Oh, i wish someone would try to save the Monarch Butterfly before it goes extinct. Nevermind, I live in America.
Just some random thoughts… proving that compared to other nations… as the chart well shows, we really do have it bad….
Now why is that so?
Why is the supposedly richest nation in the world, on it’s own accord forcing itself to live in austerity, when it has all the possibilities that have ever been open to the race of men?
Obviously other nations aren’t so picky. They are living much better! So why can’t we have nice things too?
Why can’t we pay ourselves enough to fly to the Canaries for a weekend?
Why can’t we invest more and build ourselves a train system equal to China’s and Europe’s
Why can’t we have healthy food to eat by having unhealthy food cost more to cover it’s future medical expense?
Why can’t we earn enough per week to have enough left over to spontaneously go to the movies this weekend?
Why can’t our teachers teach three foreign languages to all our children by age 8?
Why can’t they fix that damn pothole?
Why can’t I spend what I wish on everyone I love and still have enough to live on later?
Why can’t we keep those woods as a park? Why do we had to commercialize absolutely everything?
Why can’t we establish rules that stop pollution, or cause a non-compliant place to close shop?
Why do we have to have everything genetically modified, even if it kills us later?
Why did we do nothing and let the Monarch butterfly go extinct… when we could have easily saved it?
The easy answer is that we chose to go down that path… Putting blame on any and everything else is a cop-out. We collectively made choices and this is the choice we made….
The hard answer, the one we struggle with, is why did we make that choice?
Why did other nations not make the same choice as did we, and now have all these nice things, while we are entrapped by our poverty and have really very little to show for all our good productive work? How come they got stuff, and we didn’t?
Why does Israel, which lives with rockets falling on top of them daily, live better than do we?
Why does tiny Denmark have so many wealthy people?
Why is the quality of life in the United States more closely ranked with that of Turkey, Chile, and Mexico?
Why are all the nations called Socialist and Communist by the Tea Party and the Republican Party of the United States of America, all doing better than us, and nations where cut-throat self expression is honored, are nestled at the bottom against us?
Time for a new scatter chart…
Courtesy of New York Times. (Click image to read)
Riffing off a Beatles tune title, “Happiness Is A High Progressive Tax Rate.”
Those people above who are happy, who have all those nice things… aren’t Socialists. They just come from a highly progressively tax country. People with no taxes are horrifically bitter… don’t believe it; you should try living in Somalia. Of course, no taxes are great if you are wealthy… but as one takes away each tax, one reduces the number of wealthy one will eventually have left…
So when America decided to reward the rich, and let their wealth and abundance “trickle down” all over us, we chose to go down this path of austerity. Without first thinking clearly that no one gives up their money unless forced, we assumed the bounty would flow to all.
The wealthy kept the money, and it has grown immensely. For them.
So now, they can afford to pay us lower than our worth, because others will jump at the chance to take our spot.
So now, they can afford to buy those who pass laws. to make laws for them, at our expense. For what we think doesn’t matter; they can buy the election.
So now, since they can afford cabs, we don’t need trains.
So now, since they can afford private schools, public schools should be mined to earn them even more money.
So now, since they can eat healthy food, we can’t because the profit margins are higher when they serve us sawdust, instead of real protein products.
So now, with copyrights paying them across two lifetimes, they don’t need us to go to the movies as they in the past.
So now, that pothole which affects only 1000 cars a day, can wait for the intersection into their newly developed shopping center to be completed.
So now, just why should they pay workers a living wage. They’re starving. They’d work for free if we’d just let them.
So now, parks are a nuisance and an extra cost. Better to develop the land underneath and collect rent instead.
So, now because it costs money to stop pollution, we don’t. Cuts into profits too much.
So now, all food is genetically modified… Cheaper to produce and that makes it more profitable.
So now, who needs a dumb-assed Monarch butterfly? It creates no benefit, costs money to save, it should just die and decrease the surplus number of species this planet is gasping to carry…..
We made that choice. This is our legacy. The good news is that we make choices every day. This choice we once made defines us now, but does not have to define us forever…
I’ll now leave with words from Dicken’s, rather proper for this time of season….
“I see an empty place at this table. I see a crutch without an owner, carefully preserved. If these shadows remain unaltered by the future, the child will die.”
Well, I’ve said too much. I…You’re the People here. You do what you want with this thing. Just one more thing, though. This planet needs this measly one-horse institution to change its course, if only to have some place where people can come without crawling to the 1%.
Just think about it over these holidays… Why is it that the US can’t have nice things too?
One of the nice things about this past-time is that one sees trends flow across one’s desk….
Right now, look at what is happening.
- Gigantic Power Plant Being Rammed Through Newark.
- Gigantic Scheme to Funnel Billions of Educational Dollars to Private Firms Through Common Core.
- Gigantic Scheme to Cut Government Spending Despite It’s Known Benefit to the Economy
- Gigantic Scheme to Funnel Money Out of Social Security Into Privately Managed Accounts.
- Gigantic Scheme to Funnel Your Money from Medicare Into Private High Cost Health Care.
- Gigantic Scheme to Prevent the Breakup of Gigantic Medical Conglomerates by Obamacare.
Common thread? There is too much money, and it can now do gigantic things….
Like putting out a gas fire, the first thing is to shut off the gas… Control the money.
We first broke monopolies . When they grew back, we instilled Income tax. When that was rescinded, it eventually created the Great Depression so afterwards, we then put them back in. While in place we had outstanding economic growth from 1930- 2001. That has never happened in any economy before income taxes were invented.
We rescinded taxes again, and got 2008… We puttered until 2013, when taxes were added to the top half of the top one percent. Just that has driven growth alone. More would be better.
It is obvious that raising taxes on the top one percent forces reinvestment back into the economy of this country that does not happen by their altruistic, philanthropic tendencies alone….
If none of these entities had so much money to burn, smaller amounts of money would now be burning in each of these cases attacking the very foundations of American economic stability and health….
Taxes are good. More taxes are better than less taxes… Taxes don’t take money; they allow for better choices to reinvest that money, and all become richer in the process, not just those already rich beyond all means of being able to spend it……
So again, tell me why Newark should have to breath uranium residue just so they can get richer?
So please continue to fight these little battles. Just realize where the reinforcements are coming from, that every fiscal year they are spawned anew, and acknowledge they’ve been beaten before, and can be again. Particularly when the odds are 99 to 1 in OUR favor…..
If you do the above on Grover Norquist’s group for Americans For Tax Reform, or ATR…. you will find that Grover’s group reported ATR reported spending $15,794,582 on political ads to the FEC… but told the IRS it spent only $9,791,515 on its 2012 campaign activity, a disparity of $6,003,067…..
ATR spent a total of almost $30.9 million in 2012, meaning more than half of the spending it reported to the FEC for the year was on politics, a clear violation of its tax-exempt status.
Companies in violation, must pay taxes on their income. It’s the law.
Now find your own company to bust… I’m sure you have one, or two, or three….