Lots of @WSJ & @elonmusk & #GOP chatter today about the US debt ceiling and the "need" to drastically slash federal social services, and raise taxes on poor and middle classes. Musk claims taxing billionaires won't "put a dent" in the national debt.
Let's look, shall we?
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"FORTUNE 500 companies represent two-thirds of the U.S. GDP with $16.1 trillion in revenues (up 17%), $1.84 trillion in profits (up 114%), $37 trillion in market value (up 13%), and employ 29.7 million people worldwide."
- from @FortuneMagazine
BUT...
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But corporate taxes have steadily plummeted -- even for companies that had record windfalls due to #COVID19 #pandemic related earnings.
americanprogress.org/article/these-…
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And for companies that have benefited from the energy crisis induced by the #RussianUkrainianWar and related sanctions on #Russian oil, gas & other fossil fuels.
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The #GOP scheme for cutting U.S. debt is:
- abolish income taxes
- destroy the IRS
- impose a Value-added (VAT) tax system, so that everything sold in the USA is taxed at 30%
- slash most social spending
- cut down Social Security & Medicare
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washingtonpost.com/business/post-…
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Income taxes aim to create fairness -- payment level reflects wealth (except where tax-dodging comes into play).
VAT taxes leverage pain on the poorest.
If 3 lemons cost $1, but the VAT adds 30%, a person earning $200K/yr might shrug off the added cost, but a $40/K/yr earner?
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Ouch.
Now, imagine if it's a $1,000 dining table & chairs + 30% VAT.
Or a Tesla Model 3 - $45,190 + 30% VAT.
(Why is #ElonMusk supporting this? Because it shifts personal tax burden off him, but sales of big goods, like his cars, will plummet.)
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Don't get fooled by the Debt Ceiling debate. Top corporations paid 6% of U.S. GDP in 1954. By 2019 that was down to 1%. As corporate tax rates have plummeted, payroll taxes rose, now surpassing the corp1954 rate. So the tax burden shifted from CEOs & stockholders to employees.
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Cutting income-adjusted personal taxes, letting big corporations evade taxation, raising payroll tax and imposing a 30% VAT on all sales would constitute a MASSIVE shift of wealth in America, putting millions of families into poverty & giving more $billions to the 1% richest.
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When the question of wealth distribution/fairness is raised #Republicans cry "Socialist!" or "Communist!"
But when it's about redistributing wealth to the already-super-rich, they call it supply-side economics or promise trickle-down benefits to poor & middle classes.
10/ Here's some references:
rollingstone.com/politics/polit…
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forbes.com/sites/kenrapoz…
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ourvalleyvoice.com/2022/03/26/rep…
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cnn.com/2021/06/08/pol…
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thehill.com/opinion/financ…
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brookings.edu/policy2020/vot…
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pewresearch.org/politics/2020/…
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latimes.com/business/story…
Feel free to add your solid references.
One more important reference: oxfam.org/en/research/su…
And one more trendingpoliticsnews.com/kevin-mccarthy…
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