I was recently made aware of the fact that raising taxes would have zero effect on the unemployment rate by a friend on twitter. But I refuse to allow my followers to suffer through the constant twitter debate of such issues. However, I couldn’t help but marvel at how ignorant of a statement that it was but what can you do? Oh that’s right, present some facts.
Truth is, we could very easily reduce unemployment with raised taxes by doing what the rich corporate greed mongers won’t do: taking the money and actually investing it in our country. Seriously, how many homes, private jets, and yachts are enough? Republicans scream private sector this, private sector that, but the fact of the matter is the private sector is sitting on trillions of dollars courtesy of a generous bailout by tax payers and a overly generous tax code and are creating little to no jobs.
So the rich cant afford to pay higher taxes? Lets examine. Republicans say taxes aren’t low enough? American CEO’s make 263 times more than the average pay for an American worker. In 2010 alone, CEO pay went up 27 percent while the average American’s pay went up just 2 percent. At the same time, corporate tax revenue has plummeted to historic lows. In the 1960s, the US consistently raised nearly 4 percent of it’s GDP in corporate revenue. During the 1970s, the total was still above 2.5 percent. But now the U.S raises less than 1.5 percent of GDP from the corporate income tax. In fact, 32 corporations paid more to their top executives than they paid the government in taxes. Yes, you read that correctly.
To add fuel to that fire, some companies paid ZERO taxes last year. None. GE for example, made more than five billion dollars last year and had a tax rate of -64%. Meaning they actually received billions in tax benefits instead. Sounds insane right? How about the fact that Boeing hasn’t paid any federal income taxes in three years yet their CEO Jim McNerny took home 19 million dollars. Even with all this, they are still begging the government for more tax breaks, one that would cost 80 billion more dollars. This is why America is broke. Not because of teachers or unions or healthcare programs. Because of greedy corporate assholes who want to take advantage of the system that created their ginormous wealth yet want to pay nothing into it.
Follow @TravonRepublican legislatures are slashing state services and main street investments to the bone, attacking schools and unions yet during the heaviest part of the recession between 2008 and 2010, 12 corporations had negative income tax rates.
These major corporations earned $173 billion in profits collectively, yet these major corporations paid an average federal corporate income tax rate during this period of -1.5 percent, meaning they actually got money back in the form of tax benefits. Yet no one wants corporate tax reform. Instead we should allow them to continue to basically rape the system while the middle class basically takes the burden. Corporate CEO’s and conservatives don’t want you to live the “American Dream” because that would involve them doing the right thing for once; paying their part to play the game.
Here’s how raising taxes on the richest of the rich decrease unemployment. Since they’re taking this money under the guise that the more they make the more they can create and boost the economy and have since proven that to be very wrong, take it back. Take the money back by taxing them appropriately and using the tax dollars they would now be paying POSITIVELY into the system by directly injecting it into the economy.
Use the money to HIRE(that means employ) teachers, firefighters, EMT workers and construction workers. build roads, bridges, advance virtual and physical infrastructure, invest in clean energy and transportation, invest in research and development, medical and scientific break throughs. ALL OF THESE THINGS CREATE JOBS. But you can’t do that if you give all of the money to fat cat greedy corporate thugs who sit on the cash for themselves.
Or we can talk about how the Center for American Progress Director of Tax and Budget Policy Michael Linden found, “in the past 60 years, job growth has actually been greater in years when the top income tax rate was much higher than it is now”
If the private sector wants to sit on the money we gave them then we take it back and do with it what they refuse to do; hire Americans to work. When you raise taxes on super wealthy people who will hardly feel it you know what it does? Create support for the less fortunate, create programs for the poor, sick, and disabled while never significantly impacting the lifestyle of the rich person it came from.
They can still afford all of the same things they were already wasting money on. You know what happens when you create those programs? People have to work for them. That means raising taxes just LOWERED the unemployment rate. You know what else it did? It avoided us once again having to place the burden on middle class income earners who can’t afford to be taxed any more than they already have been. The corporate middle man strategy clearly didn’t and doesn’t work. So let’s cut them out and do it ourselves.
I know what you’re thinking. “Oh my God! you want to actually fund investment in America with money taken from the people who have prospered most from the American system?? these socialist ideas could actually do things like promote equality, shrink the grand canyon of a gap between the wealthy and the middle class, it could even benefit minorities or the poor!! ANARCHY!!”
Still think lowering taxes increases jobs? As if you needed more proof…
Follow @Travon
Your premise is flawed in that it is based on the idea that corporations/wealthy people will continue to stay in the US (the country with the highest corporate tax rate on the planet now,) and the reason corporate tax income is so low, is because of that very same tax rates. Companies are hoarding their profits overseas, where they can hold on to it instead of being taxed at the highest rate in the world. You want that money to come back, lower the corporate tax rate, companies would then have an incentive to bring repatriate their profits.
The super rich in this country would have no problem packing up and moving elsewhere that is more business/wealth friendly. You think the unemployment rate is high now, wait till more corporations move their companies overseas rather than be taxed even further.
Best thing we could do for this economy is the Fair Tax. Then EVERYONE would be paying their fair share in this country, and companies would actually have an incentive to bring jobs back here, along with their wealth. It would also start collecting taxes from the tens of millions of illegals who currently do not pay into the system but use the system quite often. It would benefit the lower income earners as their tax exposure would be near zero, and in some instances, the very worst off would get money back. Then these wealthy evil businessmen that are being made to be evil would pay their proportionate share when they buy their yachts, and their private jets.
Then again, the jackasses in Washington would never surrender all the power, and vote buying that the current tax system affords them, and most of the American votes (especially the ones living on the government teet,) are too ignorant to demand change.