We keep hearing the same sing-song from the advocates of extending Bush’s 2001 tax cuts for the wealthy. They claim repealing it would not only hinder job growth but would lead to further economic distress. Unbelievable testament to warped logic.
Since that infamous tax cut our country has been in a downward spiral; jobs have languished and the economy tanked. The claim that continuing the same tax cuts for the wealthy that brought us to this point will now magically do exactly the opposite and lead us to employment growth and economic prosperity, is no less than insane.
Under Eisenhower the high-income rate was 91%; under Kennedy it was 76% and under Clinton: 36% to 39% for the top two income tax rates.
Obama (initially) would have the top two income tax rates return to the Clinton era which was 36% (from 33%) and 39.6% (from 35%). In addition, their investment tax rates would go up to 20% from 15%. That means returning to the exact rates under which Clinton held court for two terms and we flourished.
It is also what disenters refer to as a Tax Hike rather than a Tax Return, which is what it is. All the hoopla is about a 3% to 3.6% return in income and 5% return to investment tax rates.
That is what we are lead to believe will bring the wealthy to their knees and will prevent them from creating more of those invisible jobs they have created since and due to the Bush Tax Cut.
The disparity between the CEO's of a corporation and the workers has exponentially risen through the years. In 1950 CEO's earned 24 times the average worker's pay; 122 times in 1990; 362 times in 2005, and by 2009 it has exploded to 550 times the wages of the average worker. Currently a CEO earns more in one work day than an average worker earns in 52 weeks.
There is a relevant popular saying, “Insanity is repeating the same thing over and over and expecting different results.” Another version is even more apropos, “Insanity is repeating the same mistakes and expecting different results”.
As that rare and recently deceased great humanitarian Senator once said, “When does the greed stop?”