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Liberal Majority in 2026


Liberal Majority in 2026


First of all, please note that I hold out hope of a Democratic majority in 2006. However, that's just a first step for those of us on the progressive side. Over the course of a few decades, Republicans and conservatives have come to dominate the realm of ideas. Over the course of this essay, I hope to explain at least some of the radical and harmful ideas that they have made seem mainstream.

In order to make a liberal working majority possible, we need to counter these ideas and it is going to take time. That's why I'm setting out the goal of a liberal majority by 2026. What little remains of 2006 should be spent trying to get a Democratic majority in the House so we can stop the bleeding. This will require accepting some conservative Democrats barely to the left of Zell Miller but this problem can be overcome in the House. It will be slightly more of a problem in the Senate but it will be better than what we have now.

Taxation


Conservatives have been fighting against taxation for years. It has gotten to the point where everyone believes they pay too much in taxes. The main thrusts of this assault on the price of freedom are against the income tax, capital gains taxes and the estate tax. The myth is that these three taxes exact a terrible toll on most families.

Every time a conservative talks about the effect of a tax cut, they talk about the "average taxpayer." "The 'average taxpayer' saves (insert impressively high number) under my plan." If you're a regular on this site and you're reading this essay, this probably won't be news to you but I have to note it anyway. The "average taxpayer" doesn't exist. He or she is just a statistical ploy. The average tax bill for all Americans includes what Bill Gates and other billionaires pay. All the millionaires and billionaires serve to push up all the averages.

It gets worse from there. We all look at our checks (or stubs for those of us with direct deposit) and see a lot deducted. How can I claim that you aren't paying too much in taxes when those deductions are so high? I'm not claiming that you're not paying too much in taxes. I'm talking about the very specific taxes that conservatives like to cut. For those of us who are just getting by, it is almost always payroll taxes that take the biggest bite.

Payroll taxes might very well be too high and they are regressive. Those of us with the smallest incomes fork over the highest percentages of our income to payroll taxes. This is because you only pay those taxes up to an income cap. I believe the cap is between 90 and 100 thousand dollars a year. Anything you make beyond that is payroll tax free. Therefore, someone making 400 thousand dollars is only paying payroll taxes on one quarter of his or her income. You can see why the extremely wealthy patrons of the conservative press don't care about these taxes.

The second of these taxes that Republicans like to talk about is the capital gains tax. It's a tax on gains made through investment and the right wing loves to complain about how their money is being taxed twice. Just the name of the tax should allow you to see through it. It's not a "capital loss" tax or a "capital still invested in the economy tax." It is a tax on money earned by buying and selling stocks, bonds and some other things. That sounds an awful lot like a sales tax to me.

Why don't the conservatives go on and on about the sales tax? Once again, a sales tax eats up a higher percentage of a middle or working class family's income. Everyone has a certain number of fixed expenses to which a sales tax would apply. The rich may spend more on fancier food and clothing. They probably spend more on recreation but there's a limit to it. When you get right down to it, the rich spend more money but they also save or invest a lot more. The poorest of the poor spend a greater portion of their income on necessities so the sales tax applies to far more of their income. It seems that Republicans like taxes when they are applied to the poor.

Finally, we have the estate tax that the Republicans tried to rename. When you listen to them talk about this tax, you get the idea that the government rifles through the pockets of whatever you are buried in. The fact of the matter is that this tax only applies to the richest estates. (Some state estate taxes are different and are the likely origin of the horror stories.) Before your estate pays one dollar of tax, it must be valued in the millions. Democrats are willing to increase the exemption or even index it to inflation but this is not enough for the right wing. They will not be happy until every one of their ancestors is wealthy enough to never work a day of their lives. It is about creating a permanent leisure class.

The Proud American Case for Taxation


We should be proud of our nationality. As Americans, we have a standard of living that is the envy of much of the world. Our government is responsible for much of this even though it works behind the scenes. Conservatives claim that the government should just provide money for national defense and then get out of the way. It's hard to believe that those who benefit the most from government should be so hostile to paying for it.

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Conservatives like to pretend that we don't need government but liberals should insist on differing. Did you eat today? If so, the Food and Drug Administration enforced standards on the producers, packagers and transporters of your food. You don't have to worry about getting sick because insects made it into your food. Those inspectors had to be paid and transported to the various places where they needed to work. This costs money and we need to pay for it with taxes.

Do you have money in the bank? If so, the federal government is protecting it. It is probably insured by the Federal Deposit Insurance Corporation. The first $100,000 in everyone's accounts is guaranteed. If you invest your money in a non-insured account by buying stocks for example, the federal government is protecting you with the Securities and Exchange Commission. They set the rules that prevent companies from simply stealing your money and punish those who try. Did you spend any money today? United States currency is not backed by any metal that can run out. It is backed by the stability of the government. The Treasury Department, including the Secret Service, enforces the stability of the currency by protecting you from counterfeiters.

If something goes terribly wrong, the government is there to help. FEMA exists to help you in the event of severe weather and/or certain kinds of attacks. They will do everything they can to save lives, help the survivors get through the emergency and then help rebuild afterward. The Social Security Administration provides a guaranteed pension in a time when the private sector is abandoning the concept. They also provide disability insurance to all working Americans and Medicare for both the elderly and the disabled.

What happens when conservatives get to set the priorities? The rich pay a lot less in taxes while the rest of us absorb the risk. FEMA was run as a patronage provider so thousands died from Hurricane Katrina. Our armed forces were used without regard to the consequences and thousands died. Halliburton gained no-bid contracts and provided our soldiers with food that the FDA would have rejected. In every case, the private sector did what it was designed to do and generated profits but failed to replace the government's services. The rich benefited while the poor suffered.

We liberals believe that we need to pay for the services our government provides instead of simply borrowing the money for our ancestors to pay off. We believe that the rich benefit disproportionately from government services so a progressive income tax is only fair. We also believe that voters can be shown the truth and it will shine through the lies. What we need to do is figure out how to educate those voters so saturated with conservative misinformation.


3 Comments

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In the section on the estate tax, the line should read "They will not be happy until every one of their descendants" instead of ancestors. Sorry.


John
For more go to my online journal.

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Things always look darkest before the dawn. That's certainly true with the history of progressive taxation. The political dynamics around tax policy can change, and have changed, with remarkable speed.

Consider this: In 1926, the top marginal federal tax rate on income stood at just 25 percent and the top estate tax rate at just 20 percent.

Less than a decade later, Congress set the top income tax rate at 79 percent and the top estate tax rate at 70 percent.

Maybe we won't have to wait until 2026 to see real change after all.

Sam Pizzigati
Editor, Too Much
www.toomuchonline.org

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As soon as I can fight through the brain fog associated with my illness, I'm going to make it clearer what I mean by a liberal majority by 2026. It goes way beyond taxation!


John
For more go to my online journal.

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