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Is It Time For Class Warfare?

by: Bill Egnor AKA Something The Dog Said

Wed Aug 25, 2010 at 06:02:34 AM MST


Those who read my posts (and there are a lot more of you than I ever thought there would be) know that I am not really a fan of divisive politics. This comes from the teachings of my Mom, who spent her political career reaching out to Republicans to get things done in Washtenaw County. Her argument was always that while you might hammer your opponents in today's fight, you're probably going to need them to get tomorrows work done. It is generally good advice, but it is predicated on the premise that your opponents want to get things done and really are working for the best solution for everyone.

Sadly Mom's good advice can not be used right now. There has been too big a shift in power in the nation for us to look at the Republicans as any kind of honest partner in anything. The efforts of the folks like the ultra-wealthy Koch brothers have shifted our discourse so far to the right that things which would have had politicians thinking about spending more time with their families in the past can be said with a straight face and taken as serious.  

Bill Egnor AKA Something The Dog Said :: Is It Time For Class Warfare?

At a time when the wealth of this nation is once again concentrated in the hands of a few and the rest of the nation suffers because of it, the idea of class warfare has to be revived and considered. I hate the term "class warfare" mostly because I don't like the meme of war when it comes to politics, any kind of nod to the acceptance of political violence, even rhetorically is dangerous in my mind. Still, in this case it is accurate.

The Koch brothers, Rupert Murdock, the Coors Family, and other old-ish money Right Wing folks have used the power of money to push an agenda that helps them and their fortunes grow but does nothing for the people of this nation over all. They are the source of the deregulatory push that has us recalling more than a quarter million pounds of lunch meat and a quarter billion eggs. They are the folks who helped muddy the water about cigarettes and climate change. All so they would not have to spend some of their incredibly massive profits to make their products and the production of their products less harmful.

This kind of power can only be overcome by the power of the people. The thing about the power of the people is it only works when they are united. The old slogan does not read "The people, fractious, will never be defeated", hell, that doesn't even rhyme.

One problem we face is the way the tax code is written. The idea that we are going to increase taxes on folks making more than 250,000 a year just feels too close to home. Almost no one you know makes that kind of money, yet, it is close enough that we many of us can imagine it. In my work life I have made 100,000 one year. I did it selling cars, not working in an office (and yeah there is a giant gaping whole in my soul from it). It was a hell of a lot of money and I can imagine what it would be like to make twice that.

Even folks who make somewhere between $50,000 and $75,0000 a year feel like they could get to this level. Even though they are not likely to, even though they don't know anyone who makes that kind of money, they think about it and feel like it is attainable.

This makes it hard for us to talk about making the ultra-wealthy pay their fair share. If you think that you are going to be in that group, well you don't want to do something that would hurt you later. What is needed is to start talking about the top brackets being in the 1 million dollar range and above. Even the most optimistic middle class worker does not see a day when he will be making a million dollars a year from his or her job.

Looking at it this way puts the fight in the proper perspective. The other thing we need to start doing is talking about the earnings of the ultra-wealthy in ways that everyone can grasp. A million dollars a year is a lot of money, but really it is hard for many people to intellectualize a million. Take a moment and try to imagine a million pennies or a million cars or even a million slices of bread. Very few things that we deal with in our lives come in million packs so we don't have a good grasp of what that number means.

However, everyone has had a regular pay check, so if we say that we want to raise the taxes of those who make $38,461 every two weeks, 79,000 a month (which is the same as 1 million a year) then it comes into focus just how far away most of us are from being hit by these taxes. It is hard to defend a tax break for people who make more in month than most households make in an entire year.

This is the type of number we have to start using and talking about if we want to bring people together. Folks like Joe Wurzelbacher the famous "Joe the Plumber" like to think that letting the tax cuts for the top 2% of earners expire is going to impact them. To get them to wake up we need to throw a little cold water on their day dreams of avarice.

The other component of the new class warfare is getting the unemployed to band together. The job situation in this nation makes each person looking for work see all the others as competition. If there are five people for every job opening, then that is four people you have to beat out for that job. This robs us of the cohesion that the unemployed should have. As long as we are fighting each other, we won't be fighting the very folks who will off shore 10,000 jobs for a .5% increase in revenue.

There are 14 million unemployed and under-employed adult citizens in this nation. If they all turned out and voted for one party it would be a wave that would dwarf 2006. These votes can be had, if the Democrats will focus on two things, first that the Radical Republicans will not act to create jobs. They want the "market" to do that. They have voted against every single action that helped the recession so far and would continue to do so if in power. Democrats need to stand up and say if the market won't create jobs then it is the job of the government to do so.

The second thing is to say that the ultra-wealthy are going to help pay for these jobs. They make more two weeks than you make all year, and we are going to make them pay 5% of everything over 79,000 a month to help put the people of this country back to work.

This is the win/win the Democrats need. It puts the working folks (better known as 98% of the population) on their side and puts the screws to the folks who have had it so good for so long. It also has the long term affect of reducing some of the power of the ultra-wealthy to influence the debate.

As I said before, I don't like this kind of politics. It has its dangers mostly in stoking anger of one group of Americans against another. But there comes a time when we have to deal with what is not what we would like to believe. There is a line from Young Frankenstein:


"A riot is an ugly sink, unt, I think that it is just about time dat ve had vone!"

Class warfare is an ugly thing too, but it is just about time that we start to engage in it. The fat cats and ultra-wealthy have been doing so for years, now it has to be our turn.

The floor is yours.  

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Agreed
Well done Dog-and if our side would meaning the ones who make the votes would frame it as you have there would be a chance this message would get through to some on the dark side. Doubtful but if nothing is said then nothing changes.

We're in a world of shit and it's not getting better. Quality legislation is needed and that has not nor will it happen.

I see where CNN is going to cover one of the speakers here in Da Boat when killer Rove,crazy bitch Angle and a host of others show for the nutter conference.

Media loves the crazy's and when not much is said back to them they gain credibility that is bogus.

Our side wants to lose.


No, I don't side wants to lose it is that we don't want
to win by being divisive. I didn't until just recently. It is a good ideal to reach out, it is good for democracy to govern that way but when it become crystal clear that it is a losing proposition, there is a time and place for aggressive us vs them politics.

This is one of those times. People are really angry in the naiton right now, leaders will channel that anger in a way that makes it constructive instead of letting it run wild.  

Getting Democrats together and keeping them that way is like herding cats that are high on meth, through L.A., during an earthquake, in the rain.  


[ Parent ]
If the gap between the ultra rich and the poor is widening and has been widening
for several decades, and the conservative argument is something like the income of the poorest has increased because of growth then it stands to reason that 1) wealth/growth is not infinite and 2) as the gap widens between the finite floor and ceiling, there is regulating the wealthiest and preventing their growth from eating everything up.

When people aren't getting their basic needs met, they turn... uhm... sour?

I watched this last night. It's good:



The sand in the vaseline....
The $250,000 benchmark is "net" annual income - after taxes. Let's think the way our GOP "optimistic capitalists" think on this issue. What would you do to offset your taxable income. You'd "incorporate". Hire yourself a good accountant, and start dialing down your taxable income. That's a start, but there's more. Not every corporation is created equal in the eyes of the ultimate corporate creator. Our current tax codes are structured in this way: The richer you get, the more your deduction is worth.

For most of us stiffs filing our schedule C's it's about a 10 cent tax deduction for every deductible dollar. Depending upon the number of tax shelter vehicles you have - trust funds, property owned, corporations, income vehicles, offshore bank accounts, and accountant/lawyer salaries - that deduction can easily start at around 35 cents, and it jumps up incrementally to a point where the deduction is worth 90% - or more.

Unless, you're grossing millions in annual revenues with a ton of shelters abroad, you're essentially in the same club as the rest of us financially - being fucked over by the wealthiest 5%. The best part - 78% of our federal tax dollars go to "for profit government subsidized industries." The same industries that have legislated protections that secured their entitlements to our tax dollars throughout the decades - constitutionally. The money this administration is using to help us on many levels, is essentially money being taken from these industries and returned to our States through budget reconciliations. The "Koch Club" is screaming. However, when we don't work, they don't profit. In the meantime, we need tax code reform - something we may find in common with our emotional factions on the dark side. The question for the Democrats. Can we dismiss political biases for constructive policy?  


Return to a more Progressive Tax Code
We can avoid the language of class warfare by focusing on making the tax code more progressive. Right now, everybody (rich and poor) pays the same 10% percent on the first $8,375 (single filer) of salary-type income, the same 15% on everything from $8,375 to $34,000, etc. So, the super rich only reach the 35% bracket on everything above $373,650.

In Colorado we have a flat tax code: everybody pays 4.63%. We could easily solve Colorado's budget by making our tax code more progressive, let's just follow the same brackets as the feds, and make our code 3%, 4%, 5%, 6%, 7%.

I don't know what that becomes in state revenue. Maybe we need 2%, 4%, 6%, 8%.  


Fed tax codes/brackets...
Changing Colorado's fixed 4.63% based on the "Federal" returns, isn't the answer. The problem stems from tax codes at the Federal level. Again, the current brackets reflect a standard being "the more you make the better opportunity you have to offset your taxable income through deductions". Anyone netting anything around $250k is taking advantage of significant deductions to keep them from reaching the 35% threshold. I'm not opposed to a flat tax system at the federal level.  Will it happen, not likely.

Changes in 1959 to the tax codes started a very slippery slope. By the time UCC codes rolled around, it was the beginning of the corporate welfare system. Eisenhower - those grossing $400,000 paid 90% on their gross income. Nixon - those "netting" $450,000 paid 75% on their taxable income. Reagan - those netting $350,000 paid 56% of their taxable income. Bush - netting $350,000 pay 35%. Letting the Bush tax cuts expire would bring in an extra 3% to our nation for anyone netting $250,000 and over. Think of all the tax freebies before the $250,000 benchmark.  


[ Parent ]
I would say that cutting taxes for the rich ALREADY started a class war?
10 years ago the Republicans gave big tax cuts to the rich: income, investment and estate taxes, and minor tax cuts to the middle class. This caused a deficit, and now they want to cut services to the middle class and poor, and make cuts to Social Security and Medicaid.

Sounds like we're already looking at class warfare. So, when we say "No, that isn't fair. Let's return the tax code to what it was 15 or 30 years ago", the rich start screaming class warfare.


Tax codes...
Agreed. But I'd like to see codes rolled back 50 years. LOL.

[ Parent ]
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