Tax Troubles by Troy Rondinone
As we all
know, this past Tax Day saw widespread “rebellion” against the “tyranny” of the
Obama administration.
Protesters
gathered in cities across America,
some dressed in American Revolutionary costume, denouncing the creeping
socialism of “tax and spend” policies.
One sign in Washington
proclaimed “D.C.: District of Communism.”
A protester in Texas
shouted “secede!” during a rally held by the Governor.
Supported by Fox News and lots of
opportunity-smelling Republicans, the “tea parties” carried with them an
ominous message. American History, they
suggest, supports revolution when civic liberties are trounced by leaders
carrying out unjust taxation.
Obama’s press secretary was quick
to point out that 95% of working families received a tax cut. Indeed, the new tax policy seems aimed almost
entirely at the rich. So why protest?
Strangely, the protests do have
some resemblance to the original Tea Party. That act was also carried out by working
people, but organized by wealthy merchants who had something to lose when the
Crown set to cut off their smuggling profits.
The fact of the matter is that
there is a problem with the tax
code. Only, this is not a problem most
protesters seem to be aware of. The
problem is that the rich still pay too little.
According to a recent report from the Institute of Policy Studies,
over the past generation there has been a quiet revolution in our tax
code. Back in 1955, folks who made over
$2 million (in 2006 terms) paid about 49% of it in taxes. In 2006, this same category of earners paid
about 23%. During this same period, the
rich saw their share of the nation’s income double and the very richest saw an
increase in wealth by a factor of more than 20 (see www.ips-dc.org/reports/#1207). The reason for the low percentage is due to
creative loophole-finding amongst the wealthy (taxes on the top are technically
around 39%, up from the Bush-era figure 35%).
The protesters, many of whom I
suppose will see tax cuts this year, might want to look more closely at the
folks (who actually stand to lose revenue) egging them on.
Troy Rondinone is
recording secretary for the Executive Board of the Greater New Haven Labor
History Association. He teaches American
History with a concentration in Labor History at Southern Connecticut State
University. His views in the commentary
are his own. The Association does not
take political stands, but does welcome debate about both current and
historical issues of interest to working people.