Tuesday, July 17, 2012

Reich: Why the rich need to pay their fair share

As usual Robert Reich sums up the talking points on this important subject. Yes, progressives need to be effective with talking points too, just as do regressives. The difference though is that progressives use facts and truth to benefit society where their opponents use lies and deception to benefit themselves. In this short video Reich highlights why the tax rates on the rich need to go up.

In order to handle our budget deficits the rich have to pay their fair share. They haven't for a long time and hence all the austerity cuts to the rest of society, like education, Medicare, Medicaid and infrastructure. Plus it increases the tax burden on those who can least afford it. The tax rate on the rich is at the lowest rate its been in the last 50 years (35%). With the even lower capital gains tax (15%), which is a large portion of their income, their rates are far lower than middle income wage earners.

The thing is, they can afford to pay it whereas everyone else cannot. They are taking home a larger share of total income then they have in 80 years. The 400 richest Americans have more wealth then the bottom 150 million Americans put together. Increasing their taxes will not prevent them from creating jobs, since they don't do so now with their low tax rates. Their were fewer jobs created after Bush's tax cuts. What creates jobs are employing the vast middle class with good wages, since they buy stuff. In the 3 decades after WWII the top tax rate was over 70% and the economy grew like weeds.

The last 30 years of trickle down economics has proven the lie that when you cut taxes on the rich its better for everyone. We've seen the steady decline in that period and the giant bank clusterfuck was its epitome. It never did work for anyone but the top 1% and of course they knew it, since they don't give a damn about the rest of us. Demanding that they pay their fair share is simply common sense for an economy that works for everyone, not just for them.

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