This landed on Winds of Change. Maybe it's a bit clearer than the ones I've written before on the same topic.
Supply/demand charts don't mean a thing to people who don't have jobs. We're not particularly close to one of the historical lows for employment at the moment. Employment to population _is_ worrying low at the moment, and it seems to keep dropping.
Let's be clear on what's happened since trickle-down economics became popular. You can easily look up the studies for yourself on income and employment (Saenz and Piketty, IRS site, CBO site), but the gist of it is this: Since the late 70's, capital gains taxes have been cut in half, as have income taxes on the wealthiest 2% or so of the population. The line being force-fed to the public was that this would "stimulate" the economy and raise all boats with the tide. What has in fact happened?
Constant dollar income from 1972 to 2000 rose by 4%, if you are in the _bottom_ 99% of income earners. If you're in the top 1%, constant dollar income increased by over 500% (Saenz, Piketty). Furthermore, if you were in the 99% to 99.5% bracket, your income increased by about 40% (which weights the upper bracket even further).
Meanwhile, as we were dramatically cutting taxes on the wealthiest political donors, we _increased_ social security taxes, circa 1983. Why did we do this? To "save" the system, so it would have enough money to pay for baby boomer retirements, amongst other things. Note that because social security taxes cut off at 87k (today, somewhat less earlier), social security taxes fall disproportionately on the poor and middle class. Three quarters of Americans pay MORE in social security taxes than they do in income taxes.
Instead of setting aside the money, the geniuses in BOTH parties simply added it to the general fund and spent it, leaving a shiny IOU in place of the cash.
So poor and middle class people have been _overpaying_ into the social security fund. Where is the extra money going? Why, it was given to the highest income earners in the form of a tax cut! So we cut taxes on the wealthiest because there is a "surplus", and we pay for it by transferring money out of the social security silo, to balance the general fund's budget.
There is only ONE fair solution...if too much money is in the social security fund (and over the past 20 years there has been), GIVE IT BACK TO THE PEOPLE WHO PUT IT THERE. We call them the poor and middle class, in this country. Why on earth would we give THEIR RETIREMENT MONEY (and YOURS) to the highest income individuals?
Our "conservative" friends tell us that by letting top income earners avoid taxes, we somehow stimulate the economy. Exactly how much "stimulation" does the economy need to undergo to make up for the MASSIVE THEFT of retirement savings from the poor and middle class.
Go figure out for yourself...the general fund has borrowed over $1.8 trillion from social security. What part of that did YOU contribute? Would you be better off with that in your retirement account, or are you better off with trickle-down BS and tax avoidance schemes for the wealthy?
I think the election is all about the economy, and all about ethical fiscal management of public resources. There are a lot of folks who orbit this blog who'd want to say it's about security. I agree, but security has both a long term and a short term. Short term is military, and is not really all that much of an issue. The course has been set, and a President of either party isn't going to vary too much. Longer term we need a solid economy to _sustain_ that security. Taxes as a percentage of GDP are at their lowest levels (around 15%, down from 19.5% recently) since the 1950s. What, YOUR taxes are way higher than that? You're right. They are; you pay way too much in tax, between federal income, social security, and medicare. The reason you pay way too much is that there are others who don't pay their share.
Guess it's not hard to figure out which side of this I'm on. But here's the thing: Exactly what does Kerry have to say about this situation? So far...nothing substantive. Hopefully it'll come. Bush's policies have clearly favored the same failed trickle-down policies we've been suffering under for the past twenty years.
We have two decades that shows us that the effect of cutting taxes on the the wealthiest of Americans has the effect of...reducing how much tax they pay.
This essential flaw has been masked by steadily increasing and incomprehensible public debts. Out of sight, out of mind...