TEA - Scholarly Thoughts But Please Don't Sleep
The first stage in rehabilitation is to admit you have a problem, then and only then can you begin treatment. Isn't that what they always tell drug addicts and alcoholics? So where does this leave American society?
These were the thoughts that darted through my head as I navigated the morning traffic on my way to work. Vehicles were moving slowly as I pulled up behind a shiny black Lexus SUV, it's chrome trim glimmering in the morning sunlight. I noticed a sticker in the back window with a large T-E-A spelled out horizontally. I thought maybe the driver was a fan of the fragrant brew and wanted to share their love if it with the world. I wondered if the driver preferred Earl Grey style black tea, green or some exotic blend. As I drew closer more of the sticker came into view. It said, "Taxed Enough Already." Oh, how silly of me, it was a TEA Party member.
I decided to catch a view of the driver and pulled up beside them. It was a middle aged woman, elegantly dressed and apparently quite rich. A glittering diamond ring sparkled on her finger. "I guess she needs to save money on her taxes for that diamond ring and her Lexus payments." I thought, poor thing. Bless her heart. "Bless your heart" is always something they say in the south as they smile a devilish grin and think how you deserve every misfortune you get.
I hate taxes. I especially hated them this year as April 15th closed in and I wrote out a 3,000 dollar check to the Internal Revenue Service. In truth, taxes are a kind of bitter pill that wrinkles your nose as you swallow it yet in the end, will make you more healthy.
If you listen to some you would think we are on the verge of surrendering our last dime to the Federal Government. They tell us how high taxes are and how miserable they make our lives. The funny thing is, those that complain the most seem to have the most. Some of our elected representatives decry the very government they work for as they shake their fist at the burden that has been placed upon them.
The great politician Daniel Patrick Moynihan used to say, "You are entitled to your own opinion, but you are not entitled to your own facts." That said it is amazing how many of our leaders will claim to have the facts on their side yet reality and perception can be a far cry. The reality is, as a nation we are at the lowest tax rate since the middle of the last century. Before that, I can't say. During the presidency of John F. Kennedy a startling reduction in taxes occurred. The top marginal rate was reduced from 91% to 70%. It was arguably the most successful economic point in our nations history. The post war years 1950 to 1970 were some of the most productive and dynamic America has ever seen. As a nation we were at our zenith. Production was high and unemployment low.
During the presidency of the iconic tax rebel and budget slasher Ronald Reagan who actually raised taxes, total federal tax revenue as a percentage of GDP averaged 18.2%, reaching a low point of 17.3% in 1984. In 1984, a 50 percent tax rate existed on income above $162,400 a year. Reagan acted to close many of the loopholes used by high income earners to avoid paying taxes thereby increasing their tax burden. During the presidency of Barack Obama total federal tax revenue as a percentage of GDP has averaged 14.9% and is projected to drop to 14.4% in 2011.
Despite these facts in the face of opinion, a number of our elected representatives have chosen to poke their fingers in their ears while they hum out loud. The tax burden on the wealthy of this country is at historic lows yet if you listened to some of our leaders, you would never know it. Somehow in the 50's and 60's the rich prospered and we prospered. America prospered. During the war years of the 40's there was a spirit of mutual sacrifice like I have never known. Everyone was willing to give. It was all part of making our nation stronger. Today our debt consumes us and those with the money hold it closer to their chests then ever before. They look at the rest of us with disdain. They are the "haves," we are the "have nots."
In a brilliant article by Timothy Noah titled the "Great Divergence", Noah traces the income disparity in America. In 1915, the time of the Rockefellers, Vanderbilts and Carnegies, 18 percent of the nation's income exsited in the hands of the richest 1 percent. This was not seen as an ideal time. It was a time that gave birth to a Socialist America and the demand for fair wages and workers rights. Labor unrest was so sever there were bombings and pitch battles. Congress in their infinite wisdom decided to address the problem and establish the modern tax code. Low and behold things got better and as previously mentioned America progressed. We built social systems, highways and modern infrastructure. Most importantly, we built a middle class that was the envy of the world. It was an American statement that we would never be like them. We and our democratic society would prosper as one people, as a nation. We would never be like the banana republics where elites controlled everything. We would never surrender to the likes of a European monarchy that controlled all wealth in the nation.
Some where in the 70's things started to change. Maybe we were a victim of our own success or perhaps, more likely, it was a result of our greed. Possibly we were blinded by the distinctly American quality of every man woman and child to dream that some day, they could become one of those top one percent. Sure, its a dream as misguided as purchasing a lottery ticket to get out of debt but still, it appeals to a powerful emotion.
Today our middle class is fading away. It happens slowly, so slowly at times we can't see it yet it is happening. It happens in every cut to an education system that once produced the finest most educated adults in the world. It happens every time a house is foreclosed on and a job is lost. It happens when we return from the grocery store with a little less in our bag. It happens when we close our eyes and accept the way things are or deny the very same. Today in America that income disparity is changing. It is no longer the 18% of 1915. No longer the wealth gap that we closed. Today that gap is 24%. Twenty-four percent of the wealth of this nation now exists in the pockets of the top one percent. If there is any statistic that should scare the hell out of the other 99 percent of us this it. Money is power and with each dollar flowing from the hands of the many to the hands of the few we all lose a little bit more of the nation we call our home. If our goal as a people is to become an oligarchy then we are well on our way.
God I hate taxes. I hated filling out that check to the IRS and sending an extra 3,000 dollars their way. As I sealed the envelope however I thought to myself, it is my admission to America and I guess I had better pay it. It pays for the police that protect me, the military that guards me and the system that educates the doctors that will treat me tomorrow. It pays for Social Security and Medicare. It pays for the people that keep my food safe. It pays for the roads I drove to work on and the bridges I crossed to get there. However, as I placed it in the mail I wished our elected representatives would wake up. Something has to change. No one likes paying taxes yet the truth is that in this society some can afford it a lot more than others. It my personal hero the Republican Theodore Roosevelt was alive today he would give this nation a stern lecture. After all, it was Roosevelt who pushed for an Inheritance Tax and was a strong proponent of a progressive income tax. You see, as Roosevelt strolled down the streets of New York City he once called his home, he knew the consequences of wealth and power. The Rockefellers, Vanderbilts and Carnegies were on a first name basis. He knew that if wealth was not in some way equalized what would become of our society. As our young men were sent to Europe in WWI to fight against the smoldering remains of monarchy and aristocracy he knew we must never let it happen here.
On this day I stand upon my soap box and shout to those in power. I shout to the top one percent from the top of my lungs. "Please, love this country as I do. Pay your fair share. Your fortunes were built by the debt that consumes us today, it is time for you to help pay the credit card bill. I shall do without a few extra groceries in my bag to cover my 3,000 dollar tax bill and maybe you in paying a bit more can can drive a Honda instead of a Lexus."
These were the thoughts that darted through my head as I navigated the morning traffic on my way to work. Vehicles were moving slowly as I pulled up behind a shiny black Lexus SUV, it's chrome trim glimmering in the morning sunlight. I noticed a sticker in the back window with a large T-E-A spelled out horizontally. I thought maybe the driver was a fan of the fragrant brew and wanted to share their love if it with the world. I wondered if the driver preferred Earl Grey style black tea, green or some exotic blend. As I drew closer more of the sticker came into view. It said, "Taxed Enough Already." Oh, how silly of me, it was a TEA Party member.
I hate taxes. I especially hated them this year as April 15th closed in and I wrote out a 3,000 dollar check to the Internal Revenue Service. In truth, taxes are a kind of bitter pill that wrinkles your nose as you swallow it yet in the end, will make you more healthy.
If you listen to some you would think we are on the verge of surrendering our last dime to the Federal Government. They tell us how high taxes are and how miserable they make our lives. The funny thing is, those that complain the most seem to have the most. Some of our elected representatives decry the very government they work for as they shake their fist at the burden that has been placed upon them.
The great politician Daniel Patrick Moynihan used to say, "You are entitled to your own opinion, but you are not entitled to your own facts." That said it is amazing how many of our leaders will claim to have the facts on their side yet reality and perception can be a far cry. The reality is, as a nation we are at the lowest tax rate since the middle of the last century. Before that, I can't say. During the presidency of John F. Kennedy a startling reduction in taxes occurred. The top marginal rate was reduced from 91% to 70%. It was arguably the most successful economic point in our nations history. The post war years 1950 to 1970 were some of the most productive and dynamic America has ever seen. As a nation we were at our zenith. Production was high and unemployment low.
During the presidency of the iconic tax rebel and budget slasher Ronald Reagan who actually raised taxes, total federal tax revenue as a percentage of GDP averaged 18.2%, reaching a low point of 17.3% in 1984. In 1984, a 50 percent tax rate existed on income above $162,400 a year. Reagan acted to close many of the loopholes used by high income earners to avoid paying taxes thereby increasing their tax burden. During the presidency of Barack Obama total federal tax revenue as a percentage of GDP has averaged 14.9% and is projected to drop to 14.4% in 2011.
Despite these facts in the face of opinion, a number of our elected representatives have chosen to poke their fingers in their ears while they hum out loud. The tax burden on the wealthy of this country is at historic lows yet if you listened to some of our leaders, you would never know it. Somehow in the 50's and 60's the rich prospered and we prospered. America prospered. During the war years of the 40's there was a spirit of mutual sacrifice like I have never known. Everyone was willing to give. It was all part of making our nation stronger. Today our debt consumes us and those with the money hold it closer to their chests then ever before. They look at the rest of us with disdain. They are the "haves," we are the "have nots."
In a brilliant article by Timothy Noah titled the "Great Divergence", Noah traces the income disparity in America. In 1915, the time of the Rockefellers, Vanderbilts and Carnegies, 18 percent of the nation's income exsited in the hands of the richest 1 percent. This was not seen as an ideal time. It was a time that gave birth to a Socialist America and the demand for fair wages and workers rights. Labor unrest was so sever there were bombings and pitch battles. Congress in their infinite wisdom decided to address the problem and establish the modern tax code. Low and behold things got better and as previously mentioned America progressed. We built social systems, highways and modern infrastructure. Most importantly, we built a middle class that was the envy of the world. It was an American statement that we would never be like them. We and our democratic society would prosper as one people, as a nation. We would never be like the banana republics where elites controlled everything. We would never surrender to the likes of a European monarchy that controlled all wealth in the nation.
Some where in the 70's things started to change. Maybe we were a victim of our own success or perhaps, more likely, it was a result of our greed. Possibly we were blinded by the distinctly American quality of every man woman and child to dream that some day, they could become one of those top one percent. Sure, its a dream as misguided as purchasing a lottery ticket to get out of debt but still, it appeals to a powerful emotion.
Today our middle class is fading away. It happens slowly, so slowly at times we can't see it yet it is happening. It happens in every cut to an education system that once produced the finest most educated adults in the world. It happens every time a house is foreclosed on and a job is lost. It happens when we return from the grocery store with a little less in our bag. It happens when we close our eyes and accept the way things are or deny the very same. Today in America that income disparity is changing. It is no longer the 18% of 1915. No longer the wealth gap that we closed. Today that gap is 24%. Twenty-four percent of the wealth of this nation now exists in the pockets of the top one percent. If there is any statistic that should scare the hell out of the other 99 percent of us this it. Money is power and with each dollar flowing from the hands of the many to the hands of the few we all lose a little bit more of the nation we call our home. If our goal as a people is to become an oligarchy then we are well on our way.
On this day I stand upon my soap box and shout to those in power. I shout to the top one percent from the top of my lungs. "Please, love this country as I do. Pay your fair share. Your fortunes were built by the debt that consumes us today, it is time for you to help pay the credit card bill. I shall do without a few extra groceries in my bag to cover my 3,000 dollar tax bill and maybe you in paying a bit more can can drive a Honda instead of a Lexus."
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