FacebookTwitterRedditEmail

Tax the Rich Before the Rest

Photograph Source: Fibonacci Blue – CC BY 2.0

Presidential candidates should take a pledge: The middle class should not pay one dollar more in new taxes until the super-rich pay their fair share.

Already candidates are outlining ambitious programs to improve health care, combat climate change, and address the opioid crisis — and trying to explain how they’ll pay for it.

President Trump, on the other hand, wants to give corporations and the richest 1 percent more tax breaks to keep goosing a lopsided economic boom — even as deficit hawks moan about the exploding national debt and annual deficits topping $1 trillion.

Eventually someone is going to have to pay the bills. If history is a guide, the first to pay will be the broad middle class, thanks to lobbyists pulling the strings for the wealthy and big corporations.

Here’s a different idea: Whatever spending plan is put forward, the first $1 trillion in new tax revenue should come exclusively from multi-millionaires and billionaires.

Four decades of stagnant wages plus runaway housing and health care costs have clobbered the middle class. In an economy with staggering inequalities — the income and wealth gaps are at their widest level in a century — the middle class shouldn’t be hit up a penny more until the rich pay up.

The biggest winners of the last decade, in terms of income and wealth growth, have not been even the richest 1 percent, but the richest one-tenth of 1 percent. This 0.1 percent includes households with incomes over $2.4 million, and wealth starting at $32 million.

They own more wealth than the bottom 80 percent combined. Yet these multi-millionaires and billionaires have seen their taxes decline over the decades, in part because the tax code favors wealth over work.

This richest 0.1 percent receives two-thirds of their income from investments, while most working families have little capital income and depend on wages. But our rigged system taxes most investment income from wealth at a top rate of about 24 percent — considerably lower than the top 37 percent rate for work.

One way to ensure that the wealthy pay first is to institute a 10 percent surtax on incomes over $2 million. This “multi-millionaire surtax” would raise nearly $600 billion in revenue over 10 years, according to an upcoming study from the Tax Policy Center.

The surtax would apply to income earned from work (wages and salaries) and to investment income gained from wealth, including capital gains and dividends. So those with capital income over $2 million would not get a preferential tax rate.

The multi-millionaire surtax is easy to understand, simple to apply, and effective — because it covers all kinds of income, making it difficult for the wealthy to avoid.

And it is laser focused on the super-rich. Anyone earning below $2 million a year will not pay a dime.

As a nation, we will need to raise trillions to protect Social Security, Medicare, and Medicaid, and to address urgent priorities such as health care, climate change, child care, higher education, opioid addiction, and more.

The middle class should have 100 percent confidence that they won’t be asked to pony up until Wall Street speculators and billionaires pay the piper.  A multi-millionaire surtax is a good first step.

More articles by:
Weekend Edition
August 07, 2020
Friday - Sunday
John Davis
The COVID Interregnum
Louis Yako
20 Postcard Notes From Iraq: With Love in the Age of COVID-19
Patrick Cockburn
War and Pandemic Journalism: the Truth Can Disappear Fast
Eve Ottenberg
Fixing the COVID Numbers
Jeffrey St. Clair
Roaming Charges: Every Which Way to Lose
Paul Street
Trump is Not Conceding: This is Happening Here
Robert Hunziker
The World on Fire
Rob Urie
Neoliberal Centrists and the American Left
John Laforge
USAF Vet Could Face ‘20 Days for 20 Bombs’ for Protest Against US H-Bombs Stationed in Germany
Andrew Levine
Clyburn’s Complaint
Kavaljit Singh
Revisiting the Idea of Pigou Wealth Tax in the Time of Covid-19
Paul Ryder
Here Come the 1968 Mistakes Again
T.J. Coles
Fighting Over Kashmir Could Blow Up the Planet
David Macaray
Haven’t We All Known Guys Who Were Exactly like Donald Trump?
Conn Hallinan
What’s Driving the Simmering Conflict Between India and China
Joseph Natoli
American Failures: August, 2020
Ramzy Baroud
Apartheid or One State: Has Jordan Broken a Political Taboo?
Bruce Hobson
The US Left Needs Humility to Understand Mexican Politics
David Rosen
Easy Targets: Trump’s Attacks on Transgendered People
Ben Debney
The Neoliberal Virus
Evelyn Leopold
Is Netanyahu Serious About Annexing Jordan Valley?
Nicky Reid
When the Chickens Came Home to Roost In Portlandistan
Irma A. Velásquez Nimatuj
The Power of the White Man and His Symbols is Being De-Mystified
Kathy Kelly
Reversal: Boeing’s Flow of Blood
Brian Kelly
Ireland and Slavery: Framing Irish Complicity in the Slave Trade
Ariela Ruiz Caro
South American Nations Adopt Different COVID-19 Stategies, With Different Results
Ron Jacobs
Exorcism at Boston’s Old West Church, All Hallows Eve 1971
J.P. Linstroth
Bolsonaro’s Continuous Follies
Thomas Klikauer – Nadine Campbell
Right-Wing Populism and the End of Democracy
Dean Baker
Trump’s Real Record on Unemployment in Two Graphs
Michael Welton
Listening, Conflict and Citizenship
Nick Pemberton
Donald Trump Is The Only One Who Should Be Going To School This Fall
John Feffer
America’s Multiple Infections
Kollibri terre Sonnenblume
Thinking Outside the Social Media Echo Chamber
Andrea Mazzarino
The Military is Sick
John Kendall Hawkins
How the Middle Half Lives
Graham Peebles
The Plight of Refugees and Migrant Workers under Covid
Robert P. Alvarez
The Next Coronavirus Bill Must Protect the 2020 Election
Greg Macdougall
Ottawa Bluesfest at Zibi: Development at Sacred Site Poses Questions of Responsibility
CounterPunch News Service
Tensions Escalate as Logging Work Commences Near Active Treesits in a Redwood Rainforest
Louis Proyect
The Low Magic of Charles Bukowski
Gloria Oladipo
Rural America Deserves a Real COVID-19 Response
Binoy Kampmark
Crossing the Creepy Line: Google, Deception and the ACCC
Marc Norton
Giants and Warriors Give Their Workers the Boot
David Yearsley
Celebration of Change
FacebookTwitterRedditEmail