THE EVIDENCE IS OUT THERE—AND, AS NORMAL, WE IGNORE IT
The above chart illustrates pretty clearly the impact of payroll taxes on most Americans (such taxes are capped so the rich do not pay the same percentage—they pay significantly less) together with American corporations extraordinary success in paying less and less—while being supported through a plethora of subsidies, grants, guarantees and special deals more and more. In fact, no major corporation ever expands today without extracting major concessions from government first. American unfettered capitalism is actually government assisted to an extraordinary degree.
This is scarcely surprising since Congress—the very heart of our government—is largely financed (and therefor controlled) by major corporations. We live, whether we are prepared to admit it or not, in a corporate state.
More specifically, corporate tax actually paid used to contribute about a third of the tax take, and now provides about ten percent of the take (and is heading south).
This situation might be acceptable if our corporate economy delivered what a healthy economy requires—starting with well paid jobs—but, in fact, during the period when corporations have benefited most—the economic wellbeing of most Americans has declined significantly.
- Earning power is dropping.
- Well paid jobs are in decline.
- Low paid jobs are increasingly becoming the norm.
- Defined pensions are vanishing at an alarming rate.
- Healthcare costs—apart from being nearly twice as high as in other developed countries--are, more and more, being passed onto the individual.
- Third level educational costs are becoming a crippling burden.
- Adequate investment in infrastructure has been neglected for decades.
- The stability of the housing market remains in question.
- Interest rates, for those who save, have rarely been lower.
But of course you know all this and are striving mightily to change it—or else you are reveling in the fruits of crony capitalism.
Just remember that both actions and inaction have consequences. But they won’t show up for years I hear you say.
Unfortunately, those years have passed. They are showing up right now.