Friday, July 30, 2010

Thank you E.J. for writing what I haven’t had the time post myself over the insanity of the “debate” on economics.


We can blame the media for allowing the party of NO to get away with policies that don't make factual sense. The "fair" thing to do is have a debate.

E.J. Dionne Jr.: The simple truth is that the wealthy in the United States -- the people who have made almost all the income gains in recent years -- are undertaxed compared with everyone else.

Consider two reports from the Center on Budget and Policy Priorities. One, issued last month, highlighted findings from the Congressional Budget Office showing that "the gaps in after-tax income between the richest 1 percent of Americans and the middle and poorest fifths of the country more than tripled between 1979 and 2007."

The other, from February, used Internal Revenue Service data to show that the effective federal income tax rate for the 400 taxpayers with the very highest incomes declined by nearly half in just over a decade, even as their pre-tax incomes have grown five times larger.

The study found that the top 400 households "paid 16.6 percent of their income in federal individual income taxes in 2007, down from 30 percent in 1995." We are talking here about truly rich people. Using 2007 dollars, it took an adjusted gross income of at least $35 million to make the top 400 in 1992, and $139 million in 2007.

The notion that when we are fighting two wars, we're not supposed to consider raising taxes on such Americans is one sign of a country that's no longer serious ... studies showing that the stimulus created or saved as many as 3 million jobs are very hard to refute. It's much easier to pretend that all this money was wasted, although the evidence is overwhelming that we should have stimulated more.

When our republic was created, the population ratio between the largest and smallest state was 13 to 1. Now, it's 68 to 1. Because of the abuse of the filibuster, 41 senators representing less than 11 percent of the nation's population can, in principle, block action supported by 59 senators representing more than 89 percent of our population. And you wonder why it's so hard to get anything done in Washington?

I'm a chronic optimist about America. But we are letting stupid politics, irrational ideas on fiscal policy and an antiquated political structure undermine our power.


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