The "Fiscal Cliff" is a current hot topic with CNBC even moving from
news reporting to mounting a "Rise
Above"advocacy campaign spreading fear about what will happen
if the problem isn't resolved by 1/1/2013. Other media are equally
concerned about the need for action prior to falling off the "cliff,"
and most of the suggested solutions call for "shared sacrifice" - some
kind of a balance between spending cuts aimed mainly at social programs
and tax increases.
Well, I think that the media is spewing a lot of propaganda favorable to
the very wealthy. First, the "cliff" really isn't one. Nothing drastic
is going to happen on January 1 if no agreement is reached; there will
be adequate time to make changes after that. Second, and far more
important, the real causes of the crisis are being obscured and the
solutions being considered aren't equitable.
What is going on here is a rear-guard action by those trying to maintain
their favorable tax and policy treatment at the expense of the less
fortunate. My Rise
of Inequality Since 1980 posting clearly shows the almost
unbelievable increase in income and wealth share enjoyed by those at the
top mainly because of the favorable tax and policy treatment that their
K Street lobbyists have secured for them. Over the years this has
drastically reduced federal tax revenue making it a very significant
factor contributing to the "Fiscal Cliff."
Now, to maintain as much of their advantage as possible, those at the
top are proposing "shared sacrifice" where they grudgingly agree to a
small tax increase (means a 95 ft. Yacht instead of a 100 ft. one) and
poor Joe Schmo, who has worked much of his life shifting pallets around
in a warehouse, is asked to give up some of his SS retirement - or some
other sacrifice. Unfortunately, the conservative media (Fox News, et al)
have done much demonizing of folks at the bottom like poor Joe
erroneously casting them, rather than the tax avoiders at the top, as
the main reason for the federal government's poor fiscal shape.
I'm sorry but making sacrifice by Joe a first step in a solution just
doesn't wash with me. I know that this is naive, but the first order of
business needs to be drastic changes in the tax code to get those
at the top paying much more in taxes (means only a 75 ft. Yacht
instead of a 100 ft. one) so as to begin to reverse the inequality that
has arisen since 1980. That inequality is very unhealthy for our society
as Joseph Stiglitz shows in his perceptive book "The Price of
Inequality." Joe Schmo isn't a "taker;" he has worked hard all his life
to earn those benefits. He should only be asked to sacrifice if the tax
receipts from drastic increases in the top tax rates, making the use of
offshore tax havens more difficult and perhaps the removal of the cap on
SS contributions fail to produce adequate revenue.
The wealthy and their many apologists will say that such drastic
increases in the top tax rates will kill motivation, innovation,
investment and growth, but that's just more Plutocratic propaganda as
the links below show.
Except at a very basic level motivation
and innovation are not driven by $$. Big monetary rewards are only
incidental to successful innovation not its cause.
The
Congressional Research Service reports that a 65 year study shows
that better growth has come when the top tax rates were the highest and
that cutting top tax rates doesn't spur growth. (GOP legislators tried
to suppress this report.)
How about all that investment by the wealthy that creates jobs? Paul
Buchheit's #1 pretty well debunks that; there are some other
interesting statistics on Paul's page as well. Further, the slow growth
in the economy and jobs today is not due to a lack of investment $ to
fund business expansion it's due to a lack of demand for products
because not enough folks have the spare $ to spend. See: Who
creates jobs? Surprise- we do.
The common viewpoint is that business and economic growth do better
under GOP administrations and GOP policies, but this Forbes
article shows the reverse to be true.
So all of the Plutocrat's arguments favoring the GOP's support for low
taxes on the rich are nothing but false dogma. The acceptance of these
ideas as truths is very detrimental to the country for our legislators
can't make intelligent decisions based on falsehoods. Much pressure
needs to be applied to our GOP legislators for it will be very difficult
to get them to abandon this long-held dogma and help craft a solution to
the "Fiscal Cliff" which does not place undue burdens on Joe Schmo and
his ilk and which begin to reverse 30 years of inequality.
Some good supplemental information in these links:
YouTube
Straight talk from Independent Senator Bernie Sanders Terrific!
(Updated 11/25/2012)
Chart
- Simplifies the Fiscal Cliff Resolution Choices (Updated
11/29/2012)
5
Ways Most Americans Are Blind to How Their Country Is Stacked for the
Wealthy
It's
Simple: Cutting the Deficit Will Kill Jobs and Hurt Growth; Taxing the
Rich Won't
The
U.S. Does Not Have a Spending Problem, We Have a Distribution Problem
The
Giant Lie Trotted Out by Fiscal Conservatives Trying to Shred Social
Security
Why
the rich guys want to raise the retirement age.
YouTube
animation of the Deficits & the Debt
Categories: Opposing Plutocracy and Corporatocracy, Seeking Better Governance, Seeking Truth - Debunking Dogma