The Fleecing of America

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By Stephen Lendman (about the author) Page 11 of 11 page(s)

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The public was told that the changes would make Social Security solvent for the next 75 years. They weren't told that the program was sound and needed no restructuring. That doing it was to transfer massive wealth amounts from working Americans and the poor to the rich. One part of a greater Reagan administration scheme to shift more of it upward. In addition to restructuring individual and corporate income taxes between 1981 to 1986.

The rich benefitted most with top rates dropping from 70% in 1981 to 50% over three years and then to 28% in 1986. At the same time, the lowest rate actually rose from 11 to 15%. It was the first time that US income tax rates were simultaneously reduced at the top and raised at the bottom. Even worse was that Reagan and Greenspan collaboratively defrauded the public.

By engineering the largest ever income tax cut for the rich combined with the greatest one ever affecting working Americans earning $30,000 or less. The payroll tax was doubled, and "Trust Fund" revenues were then used to reduce budget deficits. The tax code became hugely regressive, and for the first time a pay-as-you-go retirement and disability program became one where wage earner contributions subsidize the rich as well as support current beneficiaries.

The wealth gap began widening. Today it's unprecedented with the top 1% owning 40% of global assets. The top 10% around 85% of them. The top 1% over one-third of the nation's wealth. The bottom 80% just 15.3%. The top 20% nearly 85%, and in contrast, the poorest 20% in debt owing more than they own. The result of a generational wealth transfer as well as the added effects of globalization, automation, outsourcing, the shift from manufacturing to services, deregulation, weak unions and declining membership, and government indifference to human needs. More than ever under George Bush.

Now compounded by a deepening financial crisis of unknown magnitude. The potentially catastrophic fallout from it. Rescue packages for business alone, and millions of working Americans left to fend for themselves in a very uncertain environment. The result of fleecing America. Letting greedy bankers profit from it. Commit massive fraud and get away with it. Reward them for their crimes. Looting the national treasury to pay for them. Is public anger so surprising? Only that it hasn't boiled over on the streets of the nation's Capitol. Maybe in time as things keep worsening and Washington only worries about Wall Street.

Stephen Lendman is a Research Associate of the Centre for Research on Globalization. He lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Global Research News Hour on RepublicBroadcasting.org Mondays from 11AM - 1PM US Central time for cutting-edge discussions on world and national topics with distinguished guests. All programs are archived for easy listening.

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I am a 72 year old, retired, progressive small businessman concerned about all the major national and world issues, committed to speak out and write about them.

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