Hubbard County DFL: Income inequality is a threat to democracy
The reasoning is that more people think government rules are “rigged” in favor of the rich, leaving them few options to move through the system.
We are in a time of massive income and wealth inequality, where the very rich are getting much richer and working families face heightened desperation. This desperation may have contributed to the election of Donald Trump in 2016, which caused the increase in gun violence in America and even led to the attack on Capitol Hill on January 6. This causes many people to look for ways outside the system, most likely illegal, which will ultimately break the system.
Recent history in the United States has shown that the Republican “trickle-down” economic model does not work for those at the bottom. This model supports tax cuts for the rich, with the aim of stimulating economic growth and jobs. Instead of spilling over to the middle and lower classes, tax cuts have led to an annual redistribution of wealth of $ 2 trillion from the poorest 99% to the richest 1% over the past 30 years. . According to forecasts, by 2030 the richest 1% of Americans will earn up to 40% of the country’s income, the poorest 50% will only get 6%.
Since March 2020, during this global pandemic, billionaires have added $ 1.3 trillion to their net worth. The United States has also seen more people join the group of hundred billionaires (worth over $ 100 billion) in the past 11 months.
And now, it was recently revealed that some of America’s richest people have had years of paying nothing in federal income taxes. According to a ProPublica report, IRS records show that the wealthiest can – perfectly legally – pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, that their fortune increases every year.
Pure capitalism will not solve the problem of income inequality.
So what role can government play to equalize revenues? Democrats in Congress are proposing a sweeping 10-year, $ 3.5 trillion spending plan that will improve the lives of all by expanding support for education, health care and child care, to tackle climate crisis and to invest more in infrastructure. This will be funded by tax increases. on corporations and the rich.
The plan provides for higher corporate and personal tax rates of 26.5% and 39.6%, respectively, and a 3% surtax on personal income above $ 5 million and a tax on gains. in capital of 25%.
Meanwhile, Democrat policies would grant an average tax cut to all households with incomes below $ 200,000. This is in addition to the expanded child tax credit that was in the COVID relief bill. Married parents who file joint returns, as well as eligible widows or widowers with incomes less than $ 150,000, are eligible for the full credit.
Republican lawmakers have shown they will not support a tax hike for billionaires, instead favoring corporations and the wealthy with tax cuts and bailouts.
And the COVID Relief Law was passed by Congress without any support from GOP lawmakers.
It is the Democratic Party that continues to fight for the working class. To quote the late Senator Paul Wellstone, “We all do better when we all do better. “