Our Rightist Jacobin Congress

hilton

Earlier this week, people who believe that even the working poor deserve a raise from time to time marched throughout the US in support of a $15/hour minimum wage. #FightFor15 was the largest demonstration by low-wage workers in US history, involving about 60,000 individual demonstrators calling for the federal minimum wage to be raised from an anemic $7.25. Marchers took to the streets in Buffalo, where the minimum wage is $8.75, or about $350 per week gross.

The United States talks a lot about equal rights and freedom, but you can judge a country by how it treats its poorest or most vulnerable. These aren’t lazy dole-consumers, but people who are out there in a tough economy trying to make ends meet.

Some facts: the minimum wage only affects 3.3 million American workers, or 4.3% of the total hourly workforce. This is down from 4.7% in 2012 and 13.7% in 1979. While the minimum wage workforce used to be mostly made up of students with summer jobs, the average minumum wage worker is 35 years old; 88% of them are at least 20 years old, and half of them are older than 30. Although the minimum wage may not have been created to support a family, given how much labor has been lost to third-world hellholes since the minimum wage was first implemented in 1938, it’s no surprise that unskilled workers find themselves doing menial work for minimal money.

Congress has refused to raise the federal minimum wage since 2009.

What Congress did instead this week was vote to abolish estate taxes. These represent a transfer tax of gross estates valued at over $5 million for individuals and over $10 million for couples. There are, of course, myriad ways for the ultrawealthy to avoid estate taxes through clever accounting, trusts, and transfers, but make no mistake – the only people affected are multimillionaires and billionaires. Were President Obama to miraculously sign such a bill, it would leave a $269 billion budget deficits – how would our right-wing jacobins pay for their next several wars?

You can’t even make a “trickle down” argument by repealing the estate tax – this is simply a giveaway to the superwealthy to whom the American right wing owes its holy fealty, while completely ignoring the plight of the working poor. This doesn’t even help the 1% – it helps the 0.2%. Only about 5,400 Americans are affected by it per year. Repeal of the estate tax would shift the burden of making up the difference onto the middle class and working poor. There is no benefit that this congress will not offer those who need no government assistance, and no impairment they will not impose upon average middle-class Americans.

Get a job, you bums! they cry, and when they get a job and can’t afford rent, they demand “get a better job!”

Our depraved aristocrats in their domed volcano lair in Washington have waged war (their favorite thing) against the poor and middle class for decades. Someday, they’ll overplay their hand and there will be a dramatic swing back towards social justice and help for our most vulnerable Americans. It never astonishes me how in just 40 years, the Woodstock generation went from love & peace to Bill O’Reilly yelling about open season on white male Christians.

This country can and should do better.

The Real Looters

From a New York Times profile of how multibillionaire heir and man-of-leisure Ronald Lauder avoid paying taxes on his income.

The tax burden on the nation’s superelite has steadily declined in recent decades, according to a sliver of data released annually by the I.R.S. The effective federal income tax rate for the 400 wealthiest taxpayers, representing the top 0.000258 percent, fell from about 30 percent in 1995 to 18 percent in 2008, the most recent data available.

And the economy tanked.

“There’s real truth to the idea that the tax code for the 1 percent is different from the tax code for the 99 percent,” said Victor Fleischer, a law professor at the University of Colorado. “Any taxpayer lucky enough to have appreciated property is usually put to a choice: cash out and pay some tax, or hold the property and risk the vagaries of the market. Only the truly rich can use derivatives to get the best of both worlds — lots of cash and very little risk.”

The story praises Lauder for making charitable donations of money and art to certain causes, the philanthropic way to tax avoidance. However,

“It’s admirable when people back their charitable impulses up with donations,” said Scott Klinger, tax policy director of the group Business for Shared Prosperity. “But the tax code shouldn’t allow the wealthy the kind of loopholes that let them, essentially, force other taxpayers to underwrite donations to their pet causes.”

So when you joke and mock the Occupy protesters for being a bunch of unwashed nouveau hippies with no point or direction, consider for a moment that the system is now rigged in favor of the very rich – especially those who make money from money.  When you look at the taxes withheld from your paycheck each week, or fill out your 1040 on TurboTax, remember that you pay a larger share of your income to the IRS than the superwealthy.