3. Income Level Versus % of Population-2007
90000
80000
70000
60000
Income Level
50000
40000
30000
20000
10000
0
0 20 40 60 80 100
Percent of Population
18. Conclusions on Income
• Income Distribution Counter to a Free
Enterprise, Democratic Society
• Stifles Domestic Economic Growth
-Top 1% Earn the Same as Bottom 55%
-2/3 of Population with less than $45,000
Income
- Little for New Spending To Spur Growth
• The $ Resources to Fix the Economy Are
with the 1% and large Corporations
19. Taxes
Income Share vs. Federal Income Tax Share
40.00%
Income Share
35.00%
Federal Income Tax Share
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Top 0.1% Top 1% Between 1 &5% Between 5% & 10% Between 10% & 25% Between 25% & 50% Bottom 50%
26. Percent of Income Paid for All Taxes
Payroll, Real Estate and Sales Taxes Make Total Tax Rates Similar for
Middle Class and Wealthy
27. Conclusions on Taxes
• Federal Income Tax Alone Still Somewhat
Progressive –But Not Enough
• Regressive(same % for all income levels)
payroll, sales, and real estate taxes create
similar overall rates for the Middle Class and
the Wealthy.
• Need to Address all taxation areas.
32. How Do You Create 17 Million Jobs?
• Costs About $1.5 Trillion ($1500 billion) A Year
• Who Has That?
-Government; $200 billion a year would be a
feat
- Large Corporations; Holding 1.8T, Earning 1.5T
a Year( after taxes)
- Wealthiest 1%; Earning $1.0 T a year(after
taxes)
33. How to Move the $ to a U.S. Worker
• Tax Breaks for Wealthy Hasn’t Worked
• Tax the Wealthy, Govt. Pays the
Employee
- Ok for Public Services
- But for rest, not efficient; $ In from
private sector, thru government,
backout to private sector.
- Most Job Loss in Private Sector
34. Getting the $ to a U.S. Worker
The Key: Get Corporations, 1% to Spend on U.S. Job
Creating Activities
• Increase Tax Rates but Allow Lower Rates for U.S. Job
Investment.
-Credit for demand side- wages, profit sharing, child
care, worker education
-Credit for supply side- plant investment, hires
• End Tax Breaks for Facility/Job Outsourcing
- Tax Income as Earned , not when “returned “ to U.S.
- Limit Foreign Tax Credit; Remove U.S. Sales Income
from Calculation
-Offshore Tax Haven Abuse; $100 Billion/Year
35. Grow Economy
• American Jobs Act-near term
• Change Corporate, Upper End Tax Rates to Spur
• U.S. Job Investment
• Long Term Infrastructure Work; Derivatives Tax
• Change Anti-Competitive Laws and Regulations
• Improve Education: public school capability and
funding methods, preschool, community
colleges, college loans, grants
• Research and Planning
36. With Distributed Benefit
• Increase Upper End Taxes (Income, Capital
Gains, Estate)
• Low Rates for U.S Job Creating Investments
• Use $ to shore up Safety Nets.
• Address Regressive Real Estate and Sales Taxes
• Progressive Wealth Tax - Beyond Real Estate
• State Income Taxes vs. Sales, Property Taxes
37. Distributed Benefit ,con’d
• Positive Union Approach
• Change Home Mortgage Formula(earlier
loan principal payoff)
• Less reliance on Real Estate Tax for School
Funding
• Address Excessive health care charges-price
and method
• Others?
38. Restoring Equality-Politically
Equality of Voting and Influence
- Review of Voter/Voting Impediments
---Registration
---National Holiday
---Extend Early Voting
- Limits on Private Campaign Contributions;
Override Citizens United Case
- Term Limits; Supreme Court, Congress
39. Political Equality-con’d
- Post-Election Term Employment Restrictions
- Lobbying Transparency
- Mass Media Reforms; Free Election Campaign
Air Time, Fairness Doctrine, One Station for
Free Public Air Time
- Independent State Commissions for Defining
Congressional Districts
- Others?
40. Conclusions
• Inequality Contributing to Economic
stagnation-Demand
• Political Influence Inequality Has kept Status
Quo
• No single answer to Job Creation and
Reducing Inequality
• Many Initiatives/projects to Do
Editor's Notes
All wages in 2011= $6.66T, Income of Top 1%= $1.72T = 26% of all wages.
