In these absurd economic times there are some wealthy Americans that are working to get the government to collect more income tax from them. This is a mission of the group Wealth for the Common Good.
They have a petition that calls on Congress and President Obama to immediately reverse the Bush-era tax cuts for people with taxable incomes over $235,000. The increased revenue, an estimated $43 billion a year, says the group, should go toward making long overdue investments in education, health, transportation, infrastructure, and green energy systems.
Those hit by the change would see a minimal tax increase-from 35 percent to 39.6 percent, a rate still far lower than the one under President Reagan. Even though this would raise $43 billion per year, it would only affect a very small fraction of US taxpayers-about 2.5 percent.
The Bush-era tax cuts gave $700 billion in breaks over eight years to people with annual incomes more than $200,000. The US borrowed money to make these tax cuts possible, even as the nation's schools, infrastructure, research institutions and social services were in need of new investments. Of course, it takes money to make money. So these wealthy Americans made out like bandits during the bubble economy that eventually burst.
Note that in 1955, the top 400 taxpayers paid 51 percent of their average income of $12.3 million (adjusted to 2006 dollars). In 2006, the most recent data available, the top 400 paid 17.2 percent of their average income of $263 million in federal taxes. And that 17.2 percent rate is much lower than tax rates for the rich in , When the rich paid much higher taxes there was high economic growth and much more shared national prosperity with low economic inequality.
Interestingly, as a presidential candidate, Barack Obama pledged to raise taxes on households with incomes over $250,000 by reversing the 2001 and 2003 Bush tax cuts. Nevertheless, a majority of these high-income individuals, 52 percent, still voted for him.
If so many of the wealthy seem to be good enough citizens to support this, then why don't we hear more about this? Why is there any reluctance by Congress to make this happen? What better time than now, when paying for genuine health care reform could benefit from taxing the wealthy more?
Who here is ready to give up 39.6% of what they earn to the government? I am, by no means even remotely wealthy but I cannot, in good conscience, demand that others pay what I am unwilling or unable to pay myself.
I believe that government has an insatiable appetite and we had better be careful as to how much authority to take that we give it. After Congress has squandered that additional $43 billion and with their a wetted appetite, they'll be knocking at your doors.
How easy do you suppose it would be to cut $43 billion in waste rather than extort it from the those evil rich? How immoral is it to demand that one person work to pay another's bills?
For as much as my visceral reaction would be to agree with Joel's premise, Stephen has a valid point. Government tends to spend as much as we give it, there is no finite constraint to spending. It was even more perverted during the Bush years, with his "Cut taxes for the wealthy, and start a multi-trillion dollar war" mentality.
Hats off to the wealthy who reject war mentality as the path to riches, and contribute to Great Society family values.
I don't know if I would be willing to give half of my salary to our government, which has been shown to handle money like a knife-thrower in a ballon shop. I also wonder why half of the wealthy voted for Mr. Obama: could it be because they knew he wouldn't follow through on his pledge?
Well done article, and you raise an interesting point I have heard for years through countless presidents: someone has to pay for all of this, why not those with all the money?
I agree with Stephen about cutting billions in waste rather than through means of extortion. If they can do it to the rich sooner or later they will get around to the rest of us even more than they do now. Good article.
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