Please remember that in 1961 when JFK took office the top bracket for federal income tax was at 90%. Now, we all should know that no one in that top bracket actually paid at 90%. That is what a slew of deductions and bright accountants were for. When Reagan took office he was able to lower the top bracket down to 50% from the 70% it was at that time. By 1988 the top rate went down below 30%, and then rebounded over time to the current 37%. Meanwhile, working stiffs did not see the benefits of these cuts as much as the Super Rich… and still do not.
Rep. Ocasio Cortez mentioned previously that she wants to see the top rate go back up to 70%… but ONLY for those earning at least $10 million. I say NO! We need to tax ALL the millionaires and leave everyone else alone. My plan is easy: A 25% Flat Surtax of any and all income over $ One Million per year… and this includes any bonuses and other money perks. Under my plan, all mega millionaires pay at the current rate of 37%. For every dollar earned over the $ one million you get taxed at an additional flat 25%… with NO deductions etc. The person who now earns $ 2 Million a year , for example, starts out paying at the 37% top rate. The 2nd $million sees an additional 25% FLAT SURTAX given over to Uncle Sam, which in this case would be $250k. With this terrible pandemic only adding to our unfair polarized economy, it is time for the super rich to contribute more.
For all the Ron Paul followers, true Libertarians, my next plan should be well received. We need to immediately cut our military spending by 25%, sending the savings back to our states and cities. In the old days, if anyone can recall, we had what was called Revenue Sharing. Uncle Sam sent back to each municipality tax free money AKA Block Grants, to be used for whatever projects or needs each municipality had. In my small city of around 60k , we would see, after calculations, that 25% savings in military spending (around $ 70 million) flowing in. Just imagine how that would help the economy or infrastructure or whatever we needed. Plus, by cutting this obscene spending, which is actually approximately 50% of our federal tax revenue, we could see a majority of our nearly 1000 foreign bases closed…. to the joy of the citizens of the nearly 100 countries they are in. Transplant those military personnel to the domestic bases throughout our nation, bringing added economic stimulus to the towns nearby.
Finally, with the holidays upon us, many of us are out of necessary living expenses, with millions of evictions or foreclosures already beginning. How about this New Year’s Resolution for our mega millionaire and billionaire fellow citizens: DONATE 25% OF YOUR AFTER TAX INCOME TO FOOD BANKS AND OTHER DIRECT HELP CHARITIES. Imagine how that would suffice to stop lots of financial bleeding for so many of us. Hear that Ebenezer?
Power concedes nothing without a demand. It never has. It never will.
( Frederick Douglass)
Philip A Farruggio is a contributing editor for The Greanville Post. He is also frequently posted on Global Research, Nation of Change, Countercurrents.org, and Off Guardian sites. He is the son and grandson of Brooklyn NYC longshoremen and a graduate of Brooklyn College, class of 1974. Since the 2000 election debacle Philip has written over 400 columns on the Military Industrial Empire and other facets of life in an upside down America. He is also host of the ‘ It’s the Empire… Stupid ‘ radio show, co produced by Chuck Gregory. Philip can be reached at [email protected].
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