Bernie Sanders just finished his speech in the Senate on the proposed bailout bill during which he introduced a superb amendment to the bill. Sanders' amendment would attach to the bailout bill a 10% tax on income above $500,000 per year for individuals and $1,000,000 per year for a family. That tax would generate $300 Billion over the next five years and pay for a large portion of the bailout. I am very curious to see how our Senators vote on that amendment.
Those in that income bracket should pay for this bailout because they have benefited disproportionately in the past decades. On the other end of the spectrum, middle class families are choking on health care costs, decreasing wages, increasing food and housing costs, etc. What kind of country would put the cost of a Wall Street bailout on the people struggling to provide the basics, while some in the country have more than they can ever spend?
During the past 20 years the wealthiest Americans have prospered at the expense of the middle class. As of 2004 the wealthiest 1% American families own 34.3% of the wealth in the United States. CEO pay as a ratio to factory worker pay has risen from 42:1 in 1960 to 531:1 in 2000. (The same ratio in Europe is 25:1).
With that kind of wealth distribution in this country, where is the outrage? Hopefully this bailout package has raised the average person's awareness to the inherent inequality built into American society and they will support this amendment. Now is our opportunity to send a message that the party for Wall Street is over, and the wealthy are going to pay to fix it! Call your Congressional delegation and tell them you want them to support the Sanders Amendment to the bailout!
Those in that income bracket should pay for this bailout because they have benefited disproportionately in the past decades. On the other end of the spectrum, middle class families are choking on health care costs, decreasing wages, increasing food and housing costs, etc. What kind of country would put the cost of a Wall Street bailout on the people struggling to provide the basics, while some in the country have more than they can ever spend?
During the past 20 years the wealthiest Americans have prospered at the expense of the middle class. As of 2004 the wealthiest 1% American families own 34.3% of the wealth in the United States. CEO pay as a ratio to factory worker pay has risen from 42:1 in 1960 to 531:1 in 2000. (The same ratio in Europe is 25:1).
With that kind of wealth distribution in this country, where is the outrage? Hopefully this bailout package has raised the average person's awareness to the inherent inequality built into American society and they will support this amendment. Now is our opportunity to send a message that the party for Wall Street is over, and the wealthy are going to pay to fix it! Call your Congressional delegation and tell them you want them to support the Sanders Amendment to the bailout!
UPDATE:
I just want to clarify one point. The tax is not designed to necessarily be punitive. The reason the wealthy should pay is not because they were wrong to make a lot of money. Rather the implication is that if you have made a lot of money you:
(1) are in the best position to pay because your basic needs are taken care of, with plenty to spare; and
(2)you have benefited the most from this growth in the U.S. economy, so fairness dictates you should carry more of the burden when it all goes wrong.
UPDATE II:
Bernie Sanders has posted a great explanation of why this Amendment is so important on thehuffingtonpost.com: "Don't Make Working People Bailout Wall Street"
UPDATE III:
In typical cowardly fashion the Senate put the Sanders Amendment up for a "voice vote". This is where all the Senators yell yah or nay and the presiding officer decides who won. It is no surprise, but infinitely disappointing, that the Sanders Amendment failed the voice vote. Even more frustrating is that there is no way to know which way individual Senators voted on the Amendment. Cowards.
UPDATE II:
Bernie Sanders has posted a great explanation of why this Amendment is so important on thehuffingtonpost.com: "Don't Make Working People Bailout Wall Street"
UPDATE III:
In typical cowardly fashion the Senate put the Sanders Amendment up for a "voice vote". This is where all the Senators yell yah or nay and the presiding officer decides who won. It is no surprise, but infinitely disappointing, that the Sanders Amendment failed the voice vote. Even more frustrating is that there is no way to know which way individual Senators voted on the Amendment. Cowards.
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6 comments:
Informative post. Fingers crossed. Not too hopeful.
I'm against the $85,000,000,000.00 bailout of AIG or of the thieving bankers.
Instead, I'm in favor of giving $85,000,000,000 to Americans in a We Deserve It Dividend.
To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.
Of course, it would NOT be tax free. So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has0A$595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads. Put away money for college - it'll be there.
Save in a bank - create money to loan to entrepreneurs. Buy a new car - create jobs.
Invest in the market - capital drives growth. Pay for your parent's medical insurance - health care improves.
Enable Deadbeat Dads to come clean - or else.
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.
If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!
As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General.
Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.
Here's my rationale. We deserve it and AIG or the bankers doesn't. Sure it's a crazy idea that can "never work."
But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion.
We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC.
And remember, The Birk plan only really costs $59.5 Billion because $25.5 B illion is returned instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest. Kindest personal regards.
To the above comment-
CHECK YOUR MATH: It's $425, not $425,000.
Scott Pwns @ Basic Math!!!
Check this cartoon regarding bailout:
http://www.packetlog.com/packetlog/2008/10/mr-robin-hoodlum.html
Mr Robin Hoodlum
I say to heck wit hthe bail out bill. I could care less about Wall Street. What did stupid Wall Street ever do for Main Street America? NOTHING. Why should Main Street America care!
Jiff
www.privacy.es.tc
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