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Congress Needs to Get to Work

The editor of “The Hill”, a newspaper exclusively covering Congress, said that Congress was not going to do very much in 2012, except for “the big bill” which is extending the payroll tax cut and unemployment compensation, which expire in late February. That two month extension will likely reignite the fight between Democrats and Republicans that flared last month.

In 2012, Congress, the editor implied, would be busy electioneering. That is, the Senators and Representatives will be busy raising money from commercial interests so they can keep their jobs. There won’t be much time to change anything about misallocated public budgets, unfair tax rules, undeclared costly wars, and job-depleting trade policies that, if fixed, would increase employment and public investment.

So this year, Congress will spend well over $3 billion on its own expenses to do nothing of significance other than shift more debt to individual taxpayers by depleting the social security payroll tax by over $100 billion so both parties can say they enacted a tax cut! That is what the Democrats in Congress and the President call a significant accomplishment.

Will someone call a psychiatrist? This is a Congress that is beyond dysfunctional. It is an obstacle to progress in America, a graveyard for both democracy and justice. No
wonder a new Washington Post-ABC news poll found an all time high of 84 percent of Americans disapprove of the job Congress is doing.

Both Republicans and Democrats say they want to reduce the deficit. But they are avoiding, in varying degrees, doing this in any way that would discomfort the rich and powerful. One would think that, especially in an election year, the following legislative agenda would be very popular with the voters.

First, restore the taxes on the rich that George W. Bush cut ten years ago which expanded the deficit. So clueless are the Democrats that they have not learned to use the word “restore” instead of the Republican word “increase” when talking about taxes that were previously cut for the millionaires and billionaires.

Second, collect unpaid taxes. The IRS estimates that $385 billion of tax revenues are not collected yearly. If the IRS budget increased and more people were hired, every dollar it spent would return $200 from tax evaders, including corporations and the wealthy. When taxes are not collected, the large majority of honest taxpayers are left with the unfair consequences. Imagine that money being applied to jobs that repair our crumbling public works.

Third, end the outrageous corporate loopholes that allow profitable large corporations to pay just half of the statutory tax rate of thirty-five percent. More than a few pay less than five percent and many pay zero on major profits. During a recent three year period, according to the Citizens for Tax Justice, a dozen major corporations such as Verizon and Honeywell paid no taxes on many billions of profits, and the legendary tax escapee, General Electric, managed to pay zero and even receive billions in benefits from the U.S. Treasury.

Fourth, do what most U.S. soldiers in the field have believed should have been done years ago—get out of Afghanistan and Iraq and nearby countries like Kuwait where thousands of U.S. soldiers based in Iraq have moved.

Fifth, to increase consumer demand, which creates jobs, raise the federal minimum wage from the present level of $7.25—which is $2.75 less than it was way back in 1968, adjusted for inflation—to $10 per hour. Businesses who keep raising prices and executive salaries (eg. Walmart and McDonalds) since 1968 should be reminded of their windfall in that period.

In addition, President Obama can urge mutual and pension funds and individual shareholders to demand higher dividends from companies like EMC, Google, Apple, Cisco, Oracle and others firms hoarding two trillion dollars in cash as if this money was the corporate bosses’, not the owner-shareholders. More dividends, more consumer demand, more jobs.

Want to know why Congress doesn’t make such popular and prudent decisions for the American people? Because the people are not objecting to all the power that their Congressional representatives and their corporate allies have sucked away from them. Because the people are not putting teeth and time into the “sovereignty of the people” expressed in the preamble to our Constitution which begins with “We the people,” not “We the corporation.”

So citizens, it’s your choice. If you don’t demand a say day after day, you’ll continue to pay day after day.

By the way, the Congressional switchboard number is 202-224-3121.

Ralph Nader is a consumer advocate, lawyer and author of Only the Super-Rich Can Save Us! He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, forthcoming from AK Press.

 

 

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Ralph Nader is a consumer advocate, lawyer and author of Only the Super-Rich Can Save Us! 

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