Utah's Senate President Michael Waddoups recently justified the refusal of federal money to extend unemployment benefits 13 weeks by saying it was "motivation for people to get back to work." I'm sure Utah's thousands of unemployed are relieved to know that the Senator thinks that the current economic crisis is really just them being lazy.
Yet while Americans continue their struggle in the search for work, corporate coffers are bulging at the seams. The day after President Obama was elected, the DOW Jones industrial average closed at 9,139. As of yesterday, the DOW has jumped 34.2% to 12,264. It seems our economy is doing just fine...Unless you look at the frontline American workers. Nationwide unemployment in November 2008 clocked in at 6.7%, but by last month it has risen to 8.8%. And even though the unemployment line continues to grow, the top federal income tax bracket has stayed locked at 35%, and to get that level of taxation, you had to make $374,000 last year.
Ask the average person on the street what's most important to them right now, and you're most likely to hear "ECONOMIC DEVELOPMENT." But Americans aren't talking about making the corporate profiteers richer, they're talking about having a good paying job and being able to trust it will still be there tomorrow.
And there's a way to do that. First, reinstate the estate tax for estates larger than $1.5 million. As of last year, an estate had to be valued over $5 million before the federal government would step in. That's too high. In America, the land of opportunity, we believe in people being able to achieve for themselves, not inheriting a lordship based on their genetics. Returning the estate tax to 1.5 million will help us return to the land of opportunity instead of the kingdom of inheritance.
Second, increase income taxes for those making over $400,000 per year. These mega rich are less likely to spend their income than the frontline American worker. As a result, their saved funds are re-invested, most often in corporations with the primary motive of profit for their shareholders, making them corporate profiteers. As the gap between rich and frontline American workers continues to grow, corporations are increasingly prioritizing profit margins over providing goods and services, which means that when they're given a choice of spending money to hire or keeping their profits in the income tally to make corporate profiteers happy, they're less likely to hire. Increasing income taxes in the top bracket will help the government correct this imbalance. Since my conservative friends are so fond of the Reagan era, let's be modest and return the tax rate for the top bracket to what it was during the Reagan Administration, 50% (15% higher than what it is now).
And what should the government DO with these tax dollars? Three things: subsidize employers that pay a living wage to their lowest level workers through tax cuts; increase funding for anti-poverty programs such as food stamps, unemployment, and social security; and invest in maintaining existing infrastructure. Employers who pay a living wage to their frontline American workers transform them into stimulants for the local economy. By decreasing (not eliminating) taxes on the employers that are paying their frontline American workers more, we give these employers a financial motive to treat their employees better than their competitors. As for anti-poverty programs as noted above, corporate profiteers are less likely to spend their income than frontline American workers. By putting more money into the pockets of the frontline American workers, we end up putting more money directly into the economy, benefiting all of us. We also encourage businesses to refocus on providing goods and services instead of just pumping up profits for shareholders. Finally, by investing tax dollars in maintaining the existing infrastructure, we prevent future costs when our transportation, water, and electric systems fall apart due to disrepair, all of which would inhibit economic development for Americans.
So we have a choice. We can choose a future of the status quo where the corporate profiteers continue to absorb more and more of our nation's wealth, where the economy officially recovers while American's remain unemployed and underemployed, where tap water, roads, and public parks continue to fall into disrepair. OR we can choose a future where people don't inherit achievement, they earn it; a future where the average income starts to rise instead of fall; a future where there are more good paying jobs and a better quality of life for all of us.
We don't have to continue on our current trajectory. Hardworking Americans are ready for economic development that includes them. You can contact your elected officials and let them know that taxing the corporate profiteers isn't anti-American; it's patriotic protection of opportunity. You should talk to your friends about what they really want in economic development: more money for corporate profiteers, or a better quality of life for hard working Americans. And tell me what your ideas are for a better economy in our country. Don't be shy, the future is ours.
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