Conservative philosophy debunked; Rich get richer, poor and middle class get poorer

This follows completely the complaints I reported from common taxpayers this year. Wages went down for salary earners (adjusted for inflation: wages increased 2.95%, inflation up 3.10%), but increased for the top 100 companies executives by 25% (to 17.9 million a year). [Link]

This is a gross injustice, and it gets worse. Productivity is up, causing corporate profits to rise 21.3%. This income is sitting at the top, surprisingly not trickling down. Furthermore, theoretically, as full employment occurs (as it did in June 2005), companies bid for workers, causing salaries to rise. Didn’t happen. When situations like this occur, it takes government action to stabilize the economy.

So what action do I propose? Eliminating wasteful tax breaks. The $14 billion for oil and gas companies in the energy bill, the break on capital gains, dividend, and interest income taxes only help the rich. Bring back the Estate tax, and reform the AMT. Raise the taxes on the top bracket back to 39.6% from 35%. These changes bring us back to where we were before Bush’s horrible tax cuts that destroyed the budget. Also, close the tax loopholes and shelters that cost us billions, and increase funding for the IRS so they can audit tax cheats (read Perfectly Legal by David Cay Johnston for details). This would help keep money flowing in the economy, not stagnating at the top while the poor are deprived.

Glad to see that the tax programs have statistically backfired on the President and Republicans. This is evidence of the flawed conservative philosophy, and reveals it as it for what it really is: the hope of rich people to get richer at any expense to the country and the citizens.