FacebookTwitterGoogle+RedditEmail

Tax the Rich, Then Tax Them Again

by KARL GROSSMAN

For Congressional Republicans, it is a thing untouchable: tax rates for the wealthy. The United States might be sent over a so-called “fiscal cliff” at the end of this month,. primarily because most of them—and their leadership—are refusing to budge on any increase in tax rates for the rich.

President Barack Obama wants an increase back to the top tax levels of 36% and 39.5%  that existed when Bill Clinton was president.

What is hardly being mentioned as the GOPers battle with the Obama administration is that tax rates for the rich have been dramatically dropping for decades—in what Professor Richard Wolff accurately describes as being part of “class war policies.”

The “tax rates on the richest Americans fell from 91 percent in the 1950s and 1960s, and 70 percent in the 1970s, to the current low rate of 35 percent,” notes Dr. Wolff, professor emeritus of economics at the University of Massachusetts, Amherst who is currently a visiting professor at New School University in New York City. h

The “richest Americans won that spectacular tax cut” while, he notes, “middle- and low-income Americans won no such cuts.”

This has been paralleled by how “big business and conservatives have worked to undo the regulations and taxes imposed on them in the wake of the Great Depression of the 1930s.”

“Since the end of the Great Depression—and especially since the 1970s—the class warfare waged by business and its allies, most conservatives in both parties, was successful,” says Wolff, a Harvard graduate with his Ph.D. in economics from Yale.

He notes how, at the end of World War II, “for every $1 Washington raised in taxes on individuals, it raised $1.50 in taxes on business profits. In contrast, today, for every dollar Washington gets in taxes on individuals, it gets 25 cents in taxes on business. Business and its allies successfully shifted most of its federal tax burden onto individuals.”

“In plain English,” says Dr. Wolff, “the last 50 years saw a massive shift of the burden of federal taxation from business to individuals and from rich individuals to everyone else.”

Involved have been “class war policies” in a “war that victimized the vast majority of working Americans.”  And “today, business and the rich are waging class war yet again to avoid even a small, modest reverse in the huge tax cuts they won in that war over the last half-century.”

Now there are some arguing that even with their steeply reduced tax rates, the rich are paying more in taxes. Robert Frank of CNBC said earlier this year: “Despite the oft-repeated fact that tax rates for the wealthy are at an all-time low, which is true, it’s also true that the actual amount paid in taxes by the wealthy is higher than before the recession.”

Yes, because of inflation, despite the tax rate declines for the rich they are paying more in dollars—but so are middle- and lower-income Americans. And they, because they’ve not had such a dramatic tax rate decline, are paying proportionally more in terms of their income.

And there are those who say the rich are being unjustly attacked. “I believe the president has vilified this so-called 2 percent,” Representative Darrell Issa, a Republican from California, said last week. “Vilifying people and then punitively taxing them is un-American,” he declared.

It’s nothing personal.  The bottom line is that there has been a successful effort in the U.S. to alter the progressive income tax system that is based on individuals who earn more, paying higher taxes. The tax rates for the wealthy have been reduced precipitously.

And it’s high time the wealthy again pay their fair share of taxes.

Karl Grossman, professor of journalism at the State University of New York/College of New York, is the author of the book, The Wrong Stuff: The Space’s Program’s Nuclear Threat to Our Planet. Grossman is an associate of the media watch group Fairness and Accuracy in Reporting (FAIR). He is a contributor to Hopeless: Barack Obama and the Politics of Illusion.

Karl Grossman, professor of journalism at the State University of New York/College of New York, is the author of the book, The Wrong Stuff: The Space’s Program’s Nuclear Threat to Our Planet. Grossman is an associate of the media watch group Fairness and Accuracy in Reporting (FAIR). He is a contributor to Hopeless: Barack Obama and the Politics of Illusion.

Weekend Edition
May 06, 2016
Friday - Sunday
Dave Wagner
When Liberals Run Out of Patience: the Impolite Exile of Seymour Hersh
John Stauber
Strange Bedfellows: the Bizarre Coalition of Kochs, Neocons and Democrats Allied Against Trump and His #FUvoters
Rob Urie
Hillary Clinton and the End of the Democratic Party
Joshua Frank
Afghanistan: Bombing the Land of the Snow Leopard
Bill Martin
Fear of Trump: Annals of Parliamentary Cretinism
Doug Johnson Hatlem
NYC Board of Elections Suspends 2nd Official, Delays Hillary Clinton v. Bernie Sanders Results Certification
Carol Miller
Pretending the Democratic Party Platform Matters
Paul Street
Hey, Bernie, Leave Them Kids Alone
Tamara Pearson
Mexico Already Has a Giant Wall, and a Mining Company Helped to Build It
Paul Craig Roberts
Somnolent Europe, Russia, and China
Dave Lindorff
Bringing the Sanders ‘Revolution’ to Philly’s Streets
Margaret Kimberley
Obama’s Last Gasp Imperialism
Carmelo Ruiz
The New Wave of Repression in Puerto Rico
Jack Denton
Prison Labor Strike in Alabama: “We Will No Longer Contribute to Our Own Oppression”
Jeffrey St. Clair
David Bowie’s 100 Favorite Books, the CounterPunch Connection
David Rosen
Poverty in America: the Deepening Crisis
Pepe Escobar
NATO on Trade, in Europe and Asia, is Doomed
Pete Dolack
Another Goodbye to Democracy if Transatlantic Partnership is Passed
Carla Blank
Prince: Pain and Dance
Josh Hoxie
American Tax Havens: Elites Don’t Have to go to Panama to Hide Their Money–They’ve Got Delaware
Gabriel Rockhill
Media Blackout on Nuit Debout
Barry Lando
Welcome to the Machine World: the Perfect Technological Storm
Hilary Goodfriend
The Wall Street Journal is Playing Dirty in El Salvador, Again
Frank Stricker
Ready for the Coming Assault on Social Security? Five Things Paul Ryan and Friends Don’t Want You to Think About
Robert Gordon
Beyond the Wall: an In-Depth Look at U.S. Immigration Policy
Roger Annis
City at the Heart of the Alberta Tar Sands Burning to the Ground
Simon Jones
RISE: New Politics for a Tired Scotland
Rob Hager
After Indiana: Sanders Wins another Purple State, But Remains Lost in a Haze of Bad Strategy and Rigged Delegate Math
Howard Lisnoff
Father Daniel Berrigan, Anti-war Hero With a Huge Blindspot
Adam Bartley
Australia-China Relations and the Politics of Canberra’s Submarine Deal
Nyla Ali Khan
The Complexity of the Kashmir Issue: “Conflict Can and Should be Handled Constructively
Ramzy Baroud
The Spirit of Nelson Mandela in Palestine: Is His Real Legacy Being Upheld?
Alli McCracken - Raed Jarrar
#IsraelSaudi: A Match Made in Hell
George Wuerthner
Working Wilderness and Other Code Words
Robert Koehler
Cowardice and Exoneration in Kunduz
Ron Jacobs
Psychedelic Rangers Extraordinaire
Missy Comley Beattie
It’s a Shit Show!
David Macaray
Our Best Weapon Is Being Systematically Eliminated
Colin Todhunter
Future Options: From Militarism and Monsanto to Gandhi and Bhaskar Save
Binoy Kampmark
The Trump Train Chugs Along
Cesar Chelala
A Lesson of Auschwitz
John Laforge
Dan Berrigan, 1921 – 2016: “We Haven’t Lost, Because We Haven’t Given Up.”
Norman Trabulsy Jr
John Denver and My 40th High School Reunion
Charles R. Larson
Being Gay in China, Circa 1987
David Yearsley
Skepticism, Irony, and Doubt: Williams on Bach
FacebookTwitterGoogle+RedditEmail