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The following article was published in our article directory on January 10, 2013.
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The Soul of America

Article Category: Politics

Author Name: Justin Harris

Regardless of such terms as "fiscal cliff" and "debt ceiling," the great argument occurring in Washington now has reasonably little to do with financial problems. It is all about belief. It is everything about economic champions and losers in American society. It is all about the power of Big Money. It is everything about the soul of America.

In America today, we have the most unequal distribution of wide range and income of any significant country on earth, and more inequality than at any time duration because 1928. The top 1 percent possesses 42 percent of the financial wealth of the nation, while, unbelievably, the bottom 60 percent own just 2.3 percent. One household, the Walton family of Wal-Mart, possesses more wealth than the bottom 40 percent of Americans. In regards to earnings circulation in 2010, the last study done on this concern, the leading 1 percent made 93 percent of all brand-new income while the bottom 99 percent shared the staying 7 percent.

Regardless of the reality that the rich are coming to be much richer while the middle class collapses and the many Americans staying in poverty is at an all-time high, the Republicans and their billionaire backers want more, more, and more. The class warfare continues.

My Republican colleagues say that the deficits are a spending ache, not an income ache. They gave away substantial tax breaks for the rich. They additionally rescinded financial policies that allowed Wall Street to run like a wagering casino, leading to a severe economic downturn that wore down tax income and left even more than 14 percent of American employees underemployed or unemployed.

Now, in spite of the deficits their policies helped to produce and in spite of the massive suffering which exists in our culture, the Republicans wish to cut Social Security, veterans' programs, Medicare, Medicaid, education, nourishment programs, and essentially every program which benefits reduced - and moderate-income Americans. They decide to turn their backs on the economic truth facing a significant part of our population: high unemployment, minimized salaries, 50 million without health plan, university finishes encumbered massive student debt and senior individuals residing in desperation. And they have tried to slug the door on any additional conversation about ways to raise revenue by ending tax loopholes and unjust tax breaks.

Republicans like Senator Minority Leader Mitch McConnell who say the profits argument is over don't want you to consider these facts:.

� Federal profits today, at 15.8 percent of GDP, is lower today than it was 60 years ago. During the last year of the Clinton administration, when we had a substantial federal surplus, federal profits was 20.6 percent of GDP.

� Today corporate profits go to an all-time high, while business income tax profits as a portion of GDP is near a record low.

� In 2011, business income as a portion of GDP was simply 1.2 percent-- lower than other major country in the Organization for Economic Cooperation and Development, consisting of Britain, Germany, France, Japan, Canada, Norway, Australia, South Korea, Switzerland, Norway, Italy, Ireland, Poland, and Iceland.

� In 2011, firms paid simply 12 percent of their revenues in taxes, the lowest since 1972.

� In 2005, one out of 4 large corporations paid no income taxes at all while they gathered $ 1.1 trillion in income over that one-year duration.

Will President Obama fulfill his campaign pledge to "safeguard the middle class" or will he give in to right-wing blackmail? Will Democrats in the House and Senate stand with the large majority of our residents and such companies as AARP, the National Committee to Preserve Social Security and Medicare, the AFL-CIO, the American Legion, the Veterans of Foreign Wars and every various other veterans' company in the battle against cuts to Social Security and veterans' programs, or will they agree to a devastating corporate-backed "chained CPI" idea which makes major perk cuts to those programs and raises taxes on low-income workers?

The simple truth exists are relatively easy ways to manage the shortage crisis-- without attacking the senior, the kids the sick or the inadequate.

For example, we have actually got to do away with loopholes in the tax code that permit huge firms and the affluent to avoid more than $ 100 billion in taxes every year by setting up offshore tax shelters in places like the Cayman Islands, Bermuda and the Bahamas. This circumstance has become so ridiculous that one five-story office building in the Cayman Islands is now the "home" to more than 18,000 firms.

Further, we need to likewise end tax breaks for companies shipping American tasks overseas. Today, the United State government remains to reward companies that relocate American manufacturing jobs abroad, despite the fact that millions of American jobs have actually been outsourced to China, Mexico, and other reduced wage nations over the past years. The Joint Committee on Taxation (the authorities revenue scorekeeper in Congress) has estimated that we can raise more than $ 582 billion in profits over the following decade by getting rid of these offshore tax loopholes.

We should likewise recognize that Wall Street recklessness caused the economic crisis, and it has an obligation to lower the shortage. Establishing a 0.03 percent Wall Street speculation charge, just like what we had from 1914-1966, would dampen the unsafe level of speculation and wagering on Wall Street, encourage the financial sector to buy the productive economy and lower the shortage by more than $ 350 billion over 10 years.

We are entering a pivotal moment in the modern history of our nation. Do the elected authorities in Washington stand with ordinary Americans-- working families, kids, the senior, the bad-- or will the remarkable power of billionaire campaign factors and Big Money prevail? The American individuals, by the millions, need to send out Congress the answer to that question.

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