Class Warfare, Republican Style
Republicans have finally found a group they think deserves a tax hike: People who don’t make enough money to pay income taxes.
At the recent GOP debate, all the 2012 presidential hopefuls were unanimous in claiming they would reject a deficit-reduction deal if it contained a 10-to-one ratio of spending cuts to tax increases. But as Dave Weigel writes, the GOP’s supposed anti-tax zealots have been strangely unified in arguing that Americans who pay no income taxes — but pay a variety of other taxes — should see their taxes go up:
Republican politicians didn’t make this argument — until the Obama era. What changed? For decades, the “lucky ducky” number, the percentage of Americans that pay no taxes, never rose above 30 percent. The Bush tax cuts pushed it over 30 percent, but not too far over. Then, in 2008 and 2009, the economy collapsed. The government responded with, among other things, new tax deductions.
The result: The percentage of people paying no income taxes spiked up to 47 percent and stayed there. When the Tea Party started rallying in 2009, it wasn’t protesting higher taxes, because federal income taxes were lower, with more loopholes. It was protesting the perception that productive Americans were shelling out for an ever-expanding class of moochers. And Republicans have taken the Tea Party’s lead.
Of course, as Weigel reminds us, these people do pay sales taxes, payroll taxes, gas taxes and the like. As an April 2010 report from Citizens for Tax Justice explained: “Most of these other taxes are regressive, meaning they take a larger share of a poor or middle-class family’s income than they take from a rich family. This largely offsets the progressivity of the federal income tax.” Fat City!
This tax-the-poor attitude is widely held among Republicans, who are currently positioning themselves to oppose an extension of the payroll tax credit. After having demanded Obama extend the Bush tax cuts for the wealthiest Americans, Republicans are now fretting that the payroll tax cut will increase the deficit. Extending the Bush tax cuts increased the debt by far more than an extension of the payroll tax cut will, but that was worth it, because cutting taxes on the wealthiest Americans is the GOP’s highest priority. It’s far more important than stimulating the economy by giving a tax break to people who might actually need the money.
Of course, we’re not supposed to call the GOP’s commitment to making sure the wealthiest Americans pay as little as possible in taxes — and to increasing taxes on lower income folks — by its rightful name: “Class-warfare.” That term only applies to socialists who think we ought to return to Clinton-era tax rates.
By: Adam Serwer, The Washington Post, August 23, 2011
Brazen: Eric Cantor’s Chutzpah
Eric Cantor’s op-ed laying out the Republican agenda is filled with the kind
of distortions you’d expect, but this passage deserves special commendation.
After decrying a National Labor Relations Board Ruling, he continues:
Such behavior, coupled with the president’s insistence on raising the top tax rate paid by individuals and small businesses, has resulted in a lag in growth that has added to the debt crisis, contributing to our nation’s credit downgrade.
So Cantor is arguing that S&P downgraded U.S. debt because of President
Obama’s future plans to increase the top tax rate. That’s such a mind-boggling
claim that even Cantor cannot bring himself to put it in quite these terms. So
instead he breaks it into a series of steps.
First, he claims that the future promise of upper-bracket tax hikes “has
resulted” in a lag in growth. (Question: if the mere possibility of future tax
hikes is enough to depress growth, why don’t we go ahead and just raise taxes?
If we’re going to get the slower growth anyway, might as well get the revenue,
right?)
Second, the lag in growth “caused” by hypothetical future tax hikes added to
the debt crisis.
Third, the debt crisis contributed to the downgrading of the debt.
It’s a fairly brilliant bit of rhetoric. After all, S&P specifically cited the Republican threat to fail to lift the debt ceiling and Republican refusal
to consider any tax increases as the cause of the downgrade. cantor has
found a way to present Obama’s support for higher taxes as the cause of the
downgrade. That’s so brazen I almost have to admire it.
By: Jonathan Chait, The New Republic, August 22, 2011
Why The Rich Should Pay Higher Taxes
Wealthy Americans will recoil at the suggestion, likely responding with the tired mantra that the top earners pay most of the income tax. But two points can be made in response to that: (1) federal income tax is only a small part of the burden on the middle class.
Based on data from the Institute on Taxation and Economic Policy, the total of all state and local taxes, social security taxes, and excise taxes (gasoline, alcohol, tobacco) consumes 21% of the annual incomes of the poorest half of America. For the richest 1% of Americans, the same taxes consume 7% of their incomes. And (2) the richest people pay most of the federal income taxes because they’ve made ALMOST ALL the new income over the past 30 years. Based on Tax Foundation figures, the richest 1% has TRIPLED ITS SHARE of America’s income since 1980, AFTER TAXES.
But there are better reasons why the rich should pay higher taxes.
The very rich benefit most from national security, government-funded research, infrastructure, and property laws. Defending the country benefits the rich more, because they have more to defend. Taxpayer-funded research at the Defense Advanced Research Projects Agency (the Internet), the National Institute of Health (pharmaceuticals), and the National Science Foundation (the Digital Library Initiative) has laid a half-century foundation for their idea-building. The interstates and airports and FAA and TSA benefit people who have the money to travel.
Over a hundred years ago, Teddy Roosevelt, facing an epidemic of inequality not unlike today, reminded us that “Great corporations exist only because they are created and safeguarded by [democratic] institutions; and it is therefore our right and our duty to see that they work in harmony with these institutions.”
Here’s another good reason for the rich to pay more taxes: With the drop in tax revenue, funding for the preservation of American culture is disappearing. Do we want our national treasures deprived of maintenance because of budget cuts, as is currently happening in Italy? Do we want our national parks sold to billionaires? Do we want programs for music and the arts eliminated from schools, so that only children of the wealthy can participate in them?
The 1912 book “Promised Land” by Mary Antin revealed the wonder of a Russian immigrant coming to the U.S.: “In America, then, everything was free…light was free…music was free.”
Not that capitalist markets don’t have their place. But the current view of democracy has gone to the other extreme, in which individualism and personal gain trump societal responsibility, and growing inequality makes community support and safeguards unnecessary for the privileged elite.
Finally, back to the tax statistics. Why should financial earnings (i.e., capital gains) be taxed less than wage earnings from actual work? The richest 10% of Americans own over 80% of the stocks, the gains from which are taxed at a 15% rate. Most wage earners pay more.
Furthermore, over the past 15 years millionaires have seen their income tax rates drop from 30% to 22%. During approximately the same time period, American economic growth declined from an annual 3.2 percent rate to 1.7 percent. Lower taxes for the rich do not lead to productivity.
Will the rich stop investing or move to another country if their taxes are increased? Not likely. They have it too good here. As Warren Buffett recently stated, “I have worked with investors for 60 years and I have yet to see anyone – not even when capital gains rates were 39.9 percent in 1976-77 – shy away from a sensible investment because of the tax rate on the potential gain.”
Mr. Buffett is admitting what everyone else is beginning to realize. The rich take much more than they pay for.
By: Paul Buchheit, CommonDreams.org, August 22, 2011
Make Believe Worlds And Autoimmune Disorders: Our Politics Are Sick
We have a tendency to elect presidents who seem like the antitheses of their immediate predecessors — randy young Kennedy the un-Eisenhower, earnest truth-telling Carter the un-Nixon, charismatic Reagan the un-Carter, randy young Clinton the un-H.W. Bush, cool and cerebral Obama the un-W.
So Rick Perry fits right into that winning contrapuntal pattern. He’s the very opposite of careful and sober and understated, in his first days as an official candidate suggesting President Obama maybe doesn’t love America (“Go ask him”) and that loose monetary policy is “treasonous.” (“Look, I’m just passionate about the issue,” he explained later about his anti-Federal Reserve outburst, before switching midsentence to first-person plural, “and we stand by what we said.”)
Yet the most troubling thing about Perry (and Michele Bachmann and so many more), what’s new and strange and epidemic in mainstream politics, is the degree to which people inhabit their own Manichaean make-believe worlds. They totally believe their vivid fictions.
Everyone is entitled to his or her own opinion. Perry is even entitled to his opinion that states such as Texas might want to secede, as he threatened at a Tea Party rally two years ago. But he’s not entitled to his own facts. “When we came into the nation in 1845,” he’d earlier told some bloggers visiting his office, “we were a republic. We were a stand-alone nation. And one of the deals was, we can leave anytime we want. So we’re kind of thinking about that again.” That special opt-out provision is entirely fiction, a Texas myth the governor of Texas apparently thinks is real.
Perry also believes in the fiction of intelligent design. Campaigning in New Hampshire, he said that in Texas public schools, “we teach both creationism and evolution” — an assertion that’s a fiction itself; last month the Texas Board of Education unanimously rejected creationist biology textbooks. In Iowa, Perry served up a fresh viral-Internet fiction as his what-the-hell example of federal over-regulation — a new rule forcing farmers to get special drivers’ licenses to drive tractors. In fact, the Obama administration had just taken the very opposite position, ruling that states should maintain “common sense exemptions” for tractor-driving farmers.
Sincere, passionate, hysterical belief that the country is full of (make-believe) anti-American enemies and (fictional) foreign horrors is the besetting national disease. And I’ve diagnosed the systemic problem: the American body politic suffers from autoimmune disorders.
It’s a metaphor, but it’s not a joke. I’ve read a lot about autoimmune diseases — the literal, medical kinds, also disconcertingly on the rise — because several members of my family have them. At some point, our bodies’ own immune systems went nuts, mistaking healthy pieces of our anatomies — a pancreas, a thyroid, a joint — for foreign tissue, dangerous enemies within, and proceeded to attack and try to destroy them. It’s as close to tragedy as biology gets.
Which is pretty much exactly what’s been happening the last decade in our politics. The Truthers decided the U.S. government was behind 9/11. Others decided our black president is definitely foreign-born and Muslim. Tea Party Republicans are convinced his administration is crypto-socialist and/or proto-fascist. The anti-Shariah people are terrified of the nonexistent threat of Islamic law infecting American jurisprudence. It’s now considered reasonable to regard organs and limbs of the federal government — the E.P.A., the education department, the Federal Reserve — as tumors that must be removed. Taxation itself is now considered a parasitic pathogen rather than a crucial part of our social organism.
Many autoimmune diseases of the literal kind, such as Type 1 diabetes and multiple sclerosis, are apparently triggered by stress. For the sociopolitical autoimmune epidemic, there are plenty of plausibly precipitating mega-stresses: the 9/11 attacks and the resulting wars, a decade of stagnant incomes, chronic job insecurity, hyper-connected digitalism, real estate wipeout, teetering financial system, take your pick.
Exposure to chemicals or infections also play a role in triggering autoimmune disorders. My pathogenic scheme’s got that, too: the new streams of iffy infopinion, via talk radio and cable news and the Web, seeping into our political bloodstream 24/7.
Of course, metaphors are just … metaphors. Maybe in 2031 we’ll look back and smile and shake our heads and see the pathology of this haywire age as more psychological than physiological, a temporary national nervous breakdown, like the late 1960s. But what if our current, self-destructive political dysfunction really is exactly like an autoimmune disorder? They are generally permanent, chronic conditions. Only some are debilitating, and most are treatable, but they are all incurable.
By: Kurt Anderson, Op-Ed Columnist, The New York Times, August 19, 2011
“The Days Of Our Lives”: Race And Conservative Nostalgia
Reihan Salam says that cranky old white conservative nostalgics aren’t racists they’re just white people who are nostalgic for a whiter, more racist America:
One thing that is undeniably true is that American conservatives are overwhelmingly white in a country that is increasingly less so. As the number of Latinos and Asian-Americans has increased in coastal states like California, New York and New Jersey, many white Americans from these regions have moved inland or to the South. For at least some whites, particularly those over the age of 50, there is a sense that the country they grew up in is fading away, and that Americans with ancestors from Mexico or, as in my case, Bangladesh don’t share their religious, cultural and economic values. These white voters are looking for champions, for people who are unafraid to fight for the America they remember and love. It’s unfair to call this sentiment racist. But it does help explain at least some of our political divide.
This puts me in a mind of House Speaker John Boehner’s explicitly expressed view that the problem with President Obama is was that he and the 111th Congress were “snuffing out the America that I grew up in”.
As I said at the time, on its face it’s difficult to make sense of that. John Boehner was born in 1949. Does he feel nostalgic for the higher marginal tax rates of the America he grew up in? For the much larger labor union share of the workforce? The threat of global nuclear war? It’s difficult for me to evade the conclusion that on an emotional level, conservative nostalgics like Boehner are primarily driven by regret at the loss of social privilege by white men. In Boehner’s defense, I often hear white male progressives express nostalgia for the lost America of the 1950s and 1960s and think to myself “a black person or a woman wouldn’t put it like that.” But progressive nostalgics do at least have the high-tax, union-dominated economy and egalitarian income distribution as the things they like. But from a non-bigoted conservative point of view, what is there really to miss about the America John Boehner grew up it? The tax rates were high, but at least they didn’t let Jews into the country club?
By: Matthew Yglesias, ThinkProgress, August 19, 2011
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