Letters to the Editor
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Great Piece!
I think it scratches the surface of something much larger.
To a great extent, our predicament is the product of the endless cycle of the rich and powerful trying to become ever more rich and powerful. This seems like an eternal struggle that ebbs and flows, but doesn't end.
I'm reminded of the little boy who was given a small piglet to care for, and he carried his piglet over the fence twice a day every day. After a couple of years, the young man found he could carry a full-grown pig -- because it was bit-by-bit, day-by-day.
The stripping of the middle class of its wealth has been carried out the same way -- bit by bit, day by day. Of course taxes are an element of it. But it is frankly the tip of the iceberg.
Following World War II, there was a concerted effort to help everyday Americans have good lives. Companies were looked to provide healthcare and retirement benefits -- on top of living wages. (Shareholders get a far better deal today!)
Taxpayers expected that in exchange for their payments, they would get public services and amenities. (Defense contractors had it rough then!)
Legislators expected to wield government's power to force the rich and powerful to do the right thing by their fellow citizens -- whether by limiting their "right" to pollute, their "right" to exploit vulnerable workers, or their "right" to amass unlimited wealth without any consequence. (Managing hedge funds was hell back in the day.)
The point is that there has been no revolt, no jolt, no "line in the sand," because this has all happened in teeny tiny dribs and drabs.
It's also the case the things that cannot go on forever don't. While Americans have shown a certain kind of docile willingness to accept outrage after outrage, I am encouraged by Obama's bet that enough people have had enough, and will support meaningful change. He may be right; he may be wrong. Either way, though, he is ringing a bell -- as are so many of the thoughtful commenters on this article -- that cannot and will not be un-rung.
Historically, Americans have reacted only in the context of a cataclysm. It may be that that is what it takes this time, too. But maybe, just maybe, Americans are finally at the point where they can make smart decisions for themselves because they finally muster the political will to do so.
P.S. I love Katherine's work. Another jewel in the Salon crown.
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The three Is - Income tax, inflation, interest - did not hit mom and dad as hard
Our parents lived through the late 70's early 80's. Times were tough with gas lines etc. Moms began working out of the home just to make ends meet. Now these parents are collecting more in social security than they ever paid in. They are getting more each month from SS than their 70's mortgage payment. The new hip/knee they get free from Medicare costs more than the home they bought in 1972.
There is no way this unfunded liability can continue on the backs of the working "rich". Anybody under 45 years old is at the bottom of the Ponzi pile and will get NOTHING regardless of what your least evil candidate promises.
...our government, and the corporate ethic that has taken over this country...
True, actually it is the Federal Reserve that has a monopoly to counterfeit money. He who controls the currency controls the country. This private cartel lends to the government to filter down to their buddies like the Clintons, Bushes, and those with window offices on Wall Street, i.e. Bear Stearns. All on the guaranteed backs of the American taxpayer.
Where else would Hillary Clinton get 6.x million dollars to lend to her campain? That's right! from you, Salon reader, and your grandchildren of the future. The American youth may not be able to afford food at the rate we are going let alone the home they grew up in. Most likely this home is simply rented from the bank. Interest rates,(Federal Reserve rent payments) and property taxes are adjusting up and your landlord creates dollars out of thin air.
...Those earning more than $10 million a year now pay less a share of their income in taxes than those earning $100,000...
True, the income tax is a fraud on the American taxpayer. Just as the Federal Reserve is a fraud. If they can print money at will why do they need to take our wages from our earned labor?
The Bush tax cuts were a repeal of the Clinton tax increases. Those earning $30,000 per year will have 10% more confiscated from these wages if these "cuts" are eliminated as the Democrats promise to do. This is taking from working people who need it most not the 1% making more than $357,700. These "rich" pay more than $125,000 of their "fair share" to the feds. Many families fortunate enough to earn the right to pay the highest federal tax percentage rate have ZERO NET WORTH because of income tax and interest liability. That Escalade in the driveway is owned by GMAC finance and that $1 million mortgage is paid with after tax dollars due to the AMT.
The wealth of class animosity is not income, it's assets. Corporations and Politicians have thier wealth in assets and can get anything they want without earning an income and pay no taxes.
The solution is simple, tax the balance sheet not the income statement. Abolish the income tax! and replace it with an annual net worth tax of 2% or so. The Clintons, Bushes, McCains, Obamas, and their asset wealthy supporters need to experience the consequence and expense of their "solutions" for America not the American taxpayer.
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Imperfect presentation
It detracts from this author's presentation that housing costs are presented as "fixed" costs. Of course we all have to live somewhere, preferably indoors. Still the size of the house and wheter we rent or own is a matter of choice.
Also, the size of houses built today is influenced by what middle class people are demanding from a house. It is not as if suppliers are ignoring all those people who would buy a more modest house. Often within the same development there are a range of new houses and sizes. People are in big houses because they chose to buy them and pay a higher price.
If solidly middle class folks are waiting for the government to ride to the rescue they are nuts. The middle classes are where federal money comes from, not where it goes to.