Cutting Taxes for Middle and Lower and Poor Class Americans
Our tax code should be a vital means for redistributing wealth for all Americans. We must demand that the wealthiest Americans pay their share in taxes. We should not forget that it was Wall Street speculators whose voracity, irresponsibility and criminal behavior nearly destroyed the American economy seven years ago throwing millions into homelessness and bankruptcy and many to death. Collapsing the gap between the ultra-rich and the ultra-poor is not only a moral and ethical imperative, but also essential to reestablishing a healthy balance to a market economy. The U.S. market fails on communicating what should be produced if there is little to no relationship between the demand of the lower end of society with their need to guarantee that their basic needs are met. Simultaneously, when wealth becomes so concentrated to a handful, there is ineffectual consumer demand leading to dire consequences in jobs and economic growth.
A progressive tax code that narrows the increasing gap between the ultra-rich and the ultra-poor and stimulates the economy by fueling consumer spending by middle and lower income. A tax code with higher tax rates on wealthy income brackets should be reestablished. Most of the very rich people pay nothing. This progressive tax code will remove an unfair share of monies from the ultra-rich, while giving back some of these resources to care for the poor. The theoretical mechanism is simple: tax cuts taxes on the middle, lower and poor incomes raises the amount of money they receive for an hour of labor. This in turn encourages a desire to work more hours. Tax cuts for the ultra-rich generate less growth than the tax cuts for middle, low and poor income taxpayers.
Why do tax cuts favor the poor over cuts for the wealthy? Perhaps the wealthy aren’t likely to adjust or change their work in response to tax rates. Most high earners (executives, CEOs, doctors, lawyers) receive a salary rather than payment by the hour and are less likely to quit because of a tax increase. In addition, many wealthy work because they like it, or the social reasons and status is immeasurable. In contrast, the middle, low and poor-class need to buy for their families, thus tax cuts help them to work more. For poor, a tax cut can be a deciding factor as to whether to get a better paying job, if possible, or go on welfare. Another factor to consider is the effect on collective demand. The wealthy tend to save most of their money, but with the middle, low and poor classes a tax cut is spent, which increases demand by the multiplier effect which raises employment.
We must restore our values to our tax code. We want a tax code that rewards work and creates wealth for more people, the middle and lower wage class, not a tax code that stores wealth for the 1/10th of 1%. With the middle, lower and poor classes under assault like never before, we simply cannot afford massive tax cuts for the very wealthiest or their corporations. We must cut taxes for 98% of middle and lower-class Minnesotans and help families meet the economic challenges of their everyday lives. And we will oppose tax increases on middle and lower-class families. I want to give middle class families tax cuts that will create economic vitality. So, if we chose to enhance the economy through tax cuts, let’s give them to the middle, low and poor class rather than the wealthy.
Some things that could be done:
- We can stop U.S. corporations from delaying paying their share federal income tax on profits from offshore holdings.
- We can stop U.S. corporations from circumventing U.S. taxes by appealing to be some foreign corporation through the establishment of an offshore post office.
- We can stop U.S corporations tax breaks for oil, gas, and coal companies.
- We can close loopholes that allow U.S. corporations to affectedly increase or deflate foreign tax credits.