* Neither Barack Obama [BO] nor Mitt Romney [MR] nor the many Congressional candidates have said much of anything about the radical recent changes in America that fairly clamor for new and more effective public policy approaches, particularly in taxation. Among these:
--The out-sourcing of US production plants to foreign countries and the dry-up of high-paying US manufacturing jobs.
--Runaway executive compensation at US business firms.
--The decline of US labor unions.
--Reduction of the top marginal income tax rate from 91% in the Truman-Eisenhower-Kennedy years to the current 35%.
--The near-doubling of the share of national wealth going to 1% of the population.
* This concentration of wealth in the hands of the top few may well be the biggest single problem facing our economy, not to mention our democracy. A mass-production economy cannot function without massive buying power among the masses of consumers. BO recognizes this in warning of the consequences of the Great Divide between those living in luxury and "the other 99%". MR and the GOP ignore the subject. However, they at least nod to this reality in urging policies to create more jobs, which would provide not only more massed buying power but also more tax revenue.
*MR’s most revealing comment during the campaign has come in his proudly proclaimed statement that he has paid “no less than 13%” of his multi-million-dollar annual income in taxes in each of the past 10 years. But why not 35%? The contrasting rates underscore what a mess our tax system is -- how it’s loaded with loopholes, accounting tricks and special rates for special income flows…that allow the wealthy to get away with massive tax avoidance. Can voters possibly count on MR to attack this mess and increase the taxes paid by the wealthy, including himself?
* Is ANYONE really concerned about cutting government waste and streamlining the vast Federal bureaucracy? The Simpson-Bowles commission recommended scores of ways to do this—all of which were totally ignored by BO. Why? One suspects it’s because the government workers union, which opposes any action that might reduce Federal jobs (and union membership), is a strong political supporter of BO and the Democrats. With his management background, MR should be able to do a better job in this area. Meanwhile, no one is talking about runaway pay and benefits for longterm civil servants – a major “sleeper” issue.
* And where have the Tea Party and TP members of Congress gone on the waste issue? They talk a lot…but do what? They seem, rather, to have settled for being Abominable NO Men on anything resembling a tax hike. Meanwhile, the Occupy Wall Street/Washington movement seems to have fizzled out. No one stepped forward to articulate its concerns about our rich-poor society or to channel these into political-action goals…such as making the wealthy contribute more to the country that makes their wealth possible.
* WHO is talking about our horrendous Federal budget deficits or the national debt? The candidates are understandably more concerned with ways to get the economy moving again…BUT they could at least express their ideas on how to deal with these twin bombs that could one day wreck the economy. Something like this no-nonsense equation: Minus 6%=Balance + 5%. This means that when unemployment drops below 6%, the government would be COMPELLED to balance its operating budget AND apply an extra 5% to paying down the debt. Anyone listening?
* Our deficit/debt quandary underscores why the Bush tax cuts of 2001-2003 must rank as the biggest US economic policy blunder of modern times. As military spending for Iraq and, later, Afghanistan soared, these cuts led to a decade, still continuing, of massive deficits and pyramiding national debt. Worse, when our political leaders came to understand they had made a mistake, they did nothing to remedy it. BO favors returning to the pre-Bush tax rates. MR and the GOP violently oppose this, urging instead a “broadening of the tax base”--which is probably politically impossible--and still lower rates for the wealthy.
* MR and the GOP talk big about supporting a strong national defense…BUT when it comes to footing the bill through higher taxes, they fall strangely silent.
* As for foreign affairs, voters have to ask who can best deal with our complex tie-ins with worldwide economic problems, the Mideast uproar and the coming crisis with Iran over its nuclear-weapons drive. His four years of experience in this treacherous area would seem to favor BO.
* Congressman Paul Ryan has brought some refreshing insights into his run for the GOP vice president’s job. Yet his views seem to reflect those of Washington conservative “think tanks,” which are supported by donations from wealthy individuals and businesses…which are not known for supporting study results that, however objective sounding, clash with donor self interest.
* One frequently heard contention of spokesmen for the wealthy is that the top 1% of taxpayers pay 40% of income taxes. This may be true but it is also incomplete and misleading. What about income? If more than 40% of the nation’s personal income goes to 1% of the population, then this 1% should be paying more than 40% of the taxes, not less.
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So now you know, dear Inger, how to score the candidates on the issues. Who should be getting my vote? I still don’t know. The trouble is that neither candidate has made a convincing case that HE is the one to lead our nation in these trying times. So I’m waiting for more evidence. You, too?
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Taxes Deficits Washington Government
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