The economics of class and sectional differences drive politics. The tax code is the scorecard of the winners and losers. While wages have stagnated since 1968 taxes have become oppressively higher. Someone who worked for the minimum wage of $1.60 an hour in 1968 would have paid no Federal income tax with the $3,000 standard deduction. There was no NJ income tax and the sales tax was 3%. Ordinary people are paying more in taxes to allow the super-rich to pay less. The result is the previous recessions and the current depression.
In 1986 Reagan raised the lowest income tax rate and the OASI by 50%. This budget surplus was squandered on tax cuts for the super-rich by cutting the highest tax rate by 50%. This was followed by the stock market crash of October 1987. Obama needs to double the standard deduction and raise the tax rate on the super-rich. Else this recession will cause him to lose in 2012 just like Ford in 1976, Carter in 1980, and Bush in 1992. The minimum wage should be raised towards $16 an hour. A tax on imported goods and services will help to balance the budget.
Some people claim that giving wealth to the super-rich creates benefits for all, but I challenge them to follow this advice. Impoverishing the many only creates a recession or depression, as it has since the 19th century.
Ronald A. Sobieraj
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