Not a “Wealth Tax,” but a Return to a “Fair Tax”

Capitalism (2)

In 1940 the Revenue Tax Act created a variable tax rate based on income. As you might guess, individuals who profited the most from living in America also paid the most income tax. This helped create jobs and paid for an enormous effort in preparation for WWII.

The maximum tax rate for the super-rich was 75 percent. In 2020, the maximum tax rate is 37 percent. To give you a little perspective, here are some facts.

Americans living below the poverty line and surviving with what are considered ‘low-income’ wages compose 50 percent of all Americans. This combined group pays zero dollars in taxes. The average tax rate for the middle class is 22 percent. Adjusting for deductions and deferments, approximately 25 percent of all Americans pay more than 90 percent of income tax. The super-rich seldom pay more than 20 percent of their income tax burden.

Corporations received a huge tax break from Trump and the party of special interests last year. The maximum rate was just 35 percent, and is now 21 percent. Prior to Trump’s gift to the wealthy the average tax percentage actually paid by corporations was just under 18 percent. It will now drop to 10-12 percent according to economic experts. This is why Trump’s policies have added more than one-trillion dollars to the national deficit in less than three years.

A recent poll reveals that 64 percent of Americans approve of a “wealth tax.” This is a ludicrous name for what would in reality be a “fair tax.”

Around the world; in every developed nation; the wealthy pay for the privileges they are given for living in a free economy. Since the Reagan administration began its failed policy of “trickle down economics,” the United States has become a plutocracy. The rich control every action by our government when Republicans are in control. They have been given the ‘keys to the nation.’

Regardless of semantics, it is time for the wealthy; 704 billionaires and 18.6 million millionaires to pay their fair share. Gifts from GOP politicians to the wealthy and corporations must cease.

You’ll never hear this, read this, or see this on television, and few Americans realize this is a fact. The petroleum industry which rapes our people every day, and is the cause of climate change caused by man, continues to receive subsidies which reduce its tax rate by billions of dollars every year.

This is very wrong and must end. Under Republican rule it will not.

“The Truth Lives Here”

Op-ed by James Turnage

SOURCE

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