TAX CUTS FOR THE WEALTHY…AND SMALL BUSINESS OWNERS

The right-wing powers that be in Congress seem to be the only ones stumping in overtime to extend the unfunded Bush tax cuts. That tells me they are no longer subservient to the voters in the their home states and districts but, are now kowtowing to their constituents on Wall Street and Corporate America. The reason President Bush “sun-downed” the life of these tax cuts for this year is even an idiot like him knew that up to this point his tax cuts resulted in an addition of 700 billion dollars to the already growing deficit. He had hoped, in his dim-witted sort of way, that the tax cuts for the top echelon of income earners work and spur the economy. Well, they didn’t and the only result is we still have a failed economy and the wealthiest got richer thanks to the generous donation by the federal government.

In a still uncertain economic time, extending the tax cuts for the top echelon would only add yet another 700 billion to the deficit. This according to most economists, including the ones that advised Presidents Reagan and Bush II, would be the ONLY certain outcome of an extension. Because tax cuts failed miserably under both the Reagan and Bush II administrations should be evidence enough to not extend another hand-out to those that need them the least.

John Boner agreed this week that only 3% of small businesses nationwide even qualify for the tax cuts. Of that 3%, roughly half or 1.5% make up the vast majority of profit generated by small businesses that gross over $250,000 annually. So, by denying the extension, who gets effected? !.5% of small businesses nationally. So, this 1.5% of all businesses are considered to be the economic and employment drivers of the whole economy? Give me a break! That means, 98.5% of the income earners qualified to receive the governmental gift do nothing to improve the economy. According to a Moody’s financial survey, the vast majority of people in this top bracket aren’t business owners at all. They are doctors, surgeons, attorneys, and corporate big wigs, etc. These people are not job and business growers, they are private citizens who put that extra 1.75% of income tax savings into their own savings accounts. They don’t start businesses, they don’t hire people, they only sit back and watch their personal fortunes grow. Don’t get me wrong, I’m all for the American dream of anyone to be rich and successful. I would rather they do it within the limits of the tax codes, laws, morals, and ethics though. Moody’s did point out the fact that these exceedingly wealthy individuals are getting richer and they do spend money back into the economy on lavish homes, second homes, ninth homes, etc, expensive cars, extravagant vacations and so on. Economists don’t consider this kind of spending to be the kind it takes to revive and economy. Economists in unanimity almost say the middle class needs to be sparked to get the economy rolling again. People en mass need to start buying clothes for work and school, they need to start buying groceries again, they need to be able to buy affordable transportation again, they need health care that doesn’t send them into bankruptcy, and affordable housing that won’t result in home loss and foreclosure.

Targeted tax credits are a much more valuable tool for the government to get the economy moving again. Targeted tax credits for research and developement, tax credits to replace useless equipment and machinery, and tax credits for growing a business with additional hiring. This is real money and relief for businesses now. It is targeted to hold the businesses accountable for utilizing these breaks to actually help themselves, their business, and the economy as a whole. Tax cut extensions would be more of the same old government giveaways for the people who just don’t need them.

Also keep in mind, the vast majority of the top echelon on income earners don’t pay any taxes anyway. Their money is all sent out of country where it can’t be touched by our government. Look at the tax returns for the past few years of some of the U.S. based companies and see what they DIDN’T pay in taxes. If you’re wealthy enough in this country, you can afford to use attorneys and accountants that can find the loopholes to avoid paying in their fair share. It’s sick and it’s sad! A progressive tax system if played by the rules by everyone would virtually eliminate all budgetary problems that exist today in our country. But, the rich get richer and the poor get poorer. Arianna Huffington just released a new book called “Third World America”. In it she exposes the raw truth about what has happened in the past ten years in America. Our economic picture has become that of a third world country, a very wealthy ruling class, and poverty for the rest. With the shrinkage our nation’s middle class, because of political decisions that tilt the table to the rich to only get richer, our country is fast taking on the appearance of a typical third world state. This is an important time in our history, careful thought needs to go into which way the country needs to go. The activist ruling by the SCOTUS in the Citizens United case only cements the country’s direction to third world status. It’s time for all Americans to start studying these issues, learn the facts, and move accordingly to help revive the economy and the middle class. It’s time to stop listening to the fear mongerers on the right, especially the leader of the republican party, Fox News, and find out for yourself. You will find, the right-wing does not have your interests at heart, but their own and their cronies’ bank balances are what’s most important to them.

As you watch and listen to candidates this fall, keep in mind for each candidate; am I part of this candidate’s future constituency or is Wall Street, Big Oil and Coal, Big Insurance, and Big Banking this candidate’s future constituency? Does this candidate have interest in the economic health of the country and a rebirth and growth of a viable middle class or is it really about him/herself and his Corporate America backers. Thanks for today’s read.
Cam Obert

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