Welfare for the Wealthy
The wealthy get tax breaks not available to the middle class. By not paying their share, the wealthy load what they don’t pay onto backs of the middle class. Tax-breaks available only to the wealthy, therefore, amount to government welfare for the wealthy. Welfare for those who don’t need it makes it tougher for you and I to get ahead. Defenders of welfare for the wealthy argue tax breaks create jobs and higher taxes means less jobs. That social myth is a proven lie. Higher capital gains taxes have never hurt the economy. Today’s taxes are the lowest they have been in fifty years. The highest tax rates came during times that showed the most increase in jobs. “No one,” says Warren Buffet, “judges an investment that will create jobs on the basis of higher taxes.” Bush pushed corporate tax rates down to 15% and more jobs were lost under Bush than under any other president. Corporate tax rates under Clinton were higher than they are now and yet jobs increased under more than under any president in decades. Using the financial crisis (that Republicans caused) as a reason to lower corporate taxes, Republicans have the audacity to claim that a 35% rate is too high, while the average corporation pays a lower tax rate than a secretary. Defenders of welfare for the wealthy say workers receive investment tax breaks too. What they don’t say is the top 20% take 93% of all capital gains. The benefits of tax breaks for the average investor are lost by increased out of pocket expenses due to reduced government services. Why is it unthinking people are incensed about welfare for the poor, while ignoring that welfare for the rich takes the very food out of the mouths of their own children.
Richard Dorsey, Hacienda Heights, CA