
Is it fair to say that large swaths of the Republican Party are in a nosedive, reduced to championing homophobia, torture, race-baiting, bullying the poor, pampering the selfish rich and wrecking public life by opposing the 16th Amendment?
That’s probably not fair, but what smells decayed most commonly is.
The GOP cause is suffering from acute political entropy. Their energies have bottomed out. Their ideas are stale and out of touch. Democrats have bounded out of their entropic stupors, but their time to slump and bottom out will come again in the course of time. Now, however, is now. And so-called conservatives can’t even make their old warhorse of tax hate
work for them.
Imagine having to defend corporations and wealthy individuals from dodging taxes, some say up to a $1 trillion worth over ten years, in offshore accounts. Imagine having to oppose canceling tax incentives for companies who ship jobs overseas, giving them, instead, to companies who create jobs in the United States.
What a terrible pickle to be in. But that’s what happens when your ideology is more important to you than the goodwill and well being of your fellow citizens.
Nobody actually likes taxes. But nobody likes tax cheats either, even if their cheating is legal. Republican tax hatred has combined with an adoration of plutocracy to create a world in which modest income people pay their taxes and rich “corporate persons” and various and sundry mogels are legally allowed to evade their fair share of the tax burden.
Home folks and small businesses worry about IRS audits, the fat cats worry about having “safe” havens for their millions and billions. But doesn’t everyone know this already? Of course they do. And why hasn’t it mattered until now? I think it’s called democracy. Tax dodgers and job exporters lost a landslide election. But everyone knows that too.
So what is it with tax hate? I think it is a classic public relations ploy to find something simple, a three letter word, to turn into a scapegoat for every ill suffered by anyone.
Taxing is not the public theft of private funds. It is asking the people and businesses, and “corporate persons,” who make money using the public environment to pay for it.
The income tax basically does three kinds of things. First, it provides for the common defense. Second, it creates a physical, regulatory, judicial and educational infrastructure that allows businesses and individuals to function. Third, it is used to create an equitable, humane society that protects, in the most basic way, the civil liberties that keep us and our constitution from social upheaval and collapse.
The income tax is not some liberal/Democratic plot. It is authorized in two ways by the U.S. Constitution. First in Article I, Section 8, which empowers Congress to levy “taxes, duties, imposts and excises” that are uniform throughout the states. Second, it is authorized by the 16th Amendment to the Constitution, ratified in 1913. It gives Congress “power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
The income tax has tended to be “progressive,” in the sense that the more you have, the higher marginal rate you pay.
At the moment, tax rates go from 10 percent for the working poor to 35 percent for the super rich, if they can’t find a loophole to get out of paying them. Ten percent of someone making $8,350 a year is a devastating slice out of one’s budget, compromising health and sustenance. Thirty five percent out of say $372,951 a year or more, still leaves the taxpayer with nearly a quarter of a million dollars a year.
During WWII the lowest tax bracket was 23 percent and the highest was 94 percent, according to the IRS. The Reagan Revolution lowered the brackets in 1982 to 1986 from 14 percent and 70 percent to 12 percent and 50 percent. This is the root of the failed theory of trickle down economics.
Little or nothing trickled down from the people and companies who got a whopping 20 percent reduction in their taxes to those who got a measly 2 percent cut. And those who had to pay 50% often found ways of paying nothing. And the upper bracket rich still complain bitterly about paying anything.
It was an outrage then. It’s an outrage today.
Companies who ship jobs overseas and sequester profits off shore not only fail to pay for America’s physical, regulatory and educational infrastructure, they make vast profits from using the often dilapidated roads and power grids, as well as from the lax or missing environmental standards, of poorer countries and their nearly slave labor work force.
When corporate and individual tax dodgers make money in this country, they fail to pay their fair share in supporting all the services that state and federal government provide them, services that range from roads and bridges, and police and judicial protection, to public schools, libraries, museums, air traffic control, weather monitoring, and water delivery, and the thousands of others services we all take for granted.
I’ve never understood how one could lobby for the 2nd Amendment and lobby against the 16th Amendment on grounds that one is a protection against government and the other is an imposition of government.
The right to bear arms does have a grounding in the implied revolutionary nature of the U.S. Constitution and its motivational pathfinder, the Declaration of Independence, which declares unresponsive and oppressive governments to be a personal danger to everyone.
But the 16th Amendment is also a protection against the very reasons most destabilizing revolutions arise in the first place — gross economic injustice and inequality. Without the income tax, and the social security tax, the United States would be vulnerable to ever increasing, ever more widespread and justifiable social unrest.
Tax haters think the general public is made up of gullible fools who can be sold on tax inequality as easily as they can be sold a box cereal. And as long as ideological entropy hadn’t taken hold the Republican Party, the hard sell was hard to resist.
But those days are over.