Conclusions on Income• Income Distribution Counter to a Free Enterprise, Democratic Society• Stifles Domestic Economic Growth -Top 1% Earn the Same as Bottom 55% -2/3 of Population with less than $45,000 Income - Little for New Spending To Spur Growth• The $ Resources to Fix the Economy Are with the 1% and large Corporations
Taxes Income Share vs. Federal Income Tax Share40.00% Income Share35.00% Federal Income Tax Share30.00%25.00%20.00%15.00%10.00% 5.00% 0.00% Top 0.1% Top 1% Between 1 &5% Between 5% & 10% Between 10% & 25% Between 25% & 50% Bottom 50%
Percent of Income Paid for All TaxesPayroll, Real Estate and Sales Taxes Make Total Tax Rates Similar forMiddle Class and Wealthy
Conclusions on Taxes• Federal Income Tax Alone Still Somewhat Progressive –But Not Enough• Regressive(same % for all income levels) payroll, sales, and real estate taxes create similar overall rates for the Middle Class and the Wealthy.• Need to Address all taxation areas.
How Do You Create 17 Million Jobs?• Costs About $1.5 Trillion ($1500 billion) A Year• Who Has That? -Government; $200 billion a year would be a feat - Large Corporations; Holding 1.8T, Earning 1.5T a Year( after taxes) - Wealthiest 1%; Earning $1.0 T a year(after taxes)
How to Move the $ to a U.S. Worker• Tax Breaks for Wealthy Hasn’t Worked• Tax the Wealthy, Govt. Pays the Employee - Ok for Public Services - But for rest, not efficient; $ In from private sector, thru government, backout to private sector. - Most Job Loss in Private Sector
Getting the $ to a U.S. Worker The Key: Get Corporations, 1% to Spend on U.S. Job Creating Activities• Increase Tax Rates but Allow Lower Rates for U.S. Job Investment. -Credit for demand side- wages, profit sharing, child care, worker education -Credit for supply side- plant investment, hires• End Tax Breaks for Facility/Job Outsourcing - Tax Income as Earned , not when “returned “ to U.S. - Limit Foreign Tax Credit; Remove U.S. Sales Income from Calculation -Offshore Tax Haven Abuse; $100 Billion/Year
Grow Economy• American Jobs Act-near term• Change Corporate, Upper End Tax Rates to Spur• U.S. Job Investment• Long Term Infrastructure Work; Derivatives Tax• Change Anti-Competitive Laws and Regulations• Improve Education: public school capability and funding methods, preschool, community colleges, college loans, grants• Research and Planning
With Distributed Benefit• Increase Upper End Taxes (Income, Capital Gains, Estate)• Low Rates for U.S Job Creating Investments• Use $ to shore up Safety Nets.• Address Regressive Real Estate and Sales Taxes• Progressive Wealth Tax - Beyond Real Estate• State Income Taxes vs. Sales, Property Taxes
Distributed Benefit ,con’d• Positive Union Approach• Change Home Mortgage Formula(earlier loan principal payoff)• Less reliance on Real Estate Tax for School Funding• Address Excessive health care charges-price and method• Others?
Restoring Equality-PoliticallyEquality of Voting and Influence- Review of Voter/Voting Impediments ---Registration ---National Holiday ---Extend Early Voting- Limits on Private Campaign Contributions; Override Citizens United Case- Term Limits; Supreme Court, Congress
Political Equality-con’d- Post-Election Term Employment Restrictions- Lobbying Transparency- Mass Media Reforms; Free Election Campaign Air Time, Fairness Doctrine, One Station for Free Public Air Time- Independent State Commissions for Defining Congressional Districts- Others?
Conclusions• Inequality Contributing to Economic stagnation-Demand• Political Influence Inequality Has kept Status Quo• No single answer to Job Creation and Reducing Inequality• Many Initiatives/projects to Do