Most Popular Choices
Share on Facebook 45 Printer Friendly Page More Sharing
Exclusive to OpEd News:
OpEdNews Op Eds    H2'ed 12/15/19

Tax Reform for Donkeys - How Democrats can get it Right

By       (Page 1 of 1 pages)   5 comments
Message Larry Butler

(Image by Larry Judson Butler)   Details   DMCA
Everybody agrees that tax reform - real tax reform - is badly needed and long overdue. But the harm done by the existing system of federal revenues is little understood and completely unappreciated.

Don't look to economists to warn us about the damage that's being done; most of them are in the pockets of big-money interests. They work for banks, insurance companies, and universities funded by corporate grants; they work for people who don't want you to change the system. They have it running pretty much the way they want it to.

Plutocrats have gamed America's tax system by filling it with benefits and rewards for themselves, disguised as charities and homeowner incentives. They've propagated the myth that their corporations shouldn't have to pay taxes and that capital investment is what drives the economy. They promote the egregious inequality they've brought about as an ideal entrepreneurial meritocracy. The plutocracy is dangerous to the country, its people, and even to itself as it pushes its advantage beyond the point of stability.

Plutocrats, through the Republican Party, have long controlled the narrative of American capitalism and the free market economy. But their narrative is false - it's merely a justification for the opulent excess of the rich and the struggle of the working class. They've defined a brand of capitalism with capitalists in control of public policy. That's repugnant to a republic committed to the ideals of democracy. It's time to reclaim the narrative in the name of the people. But who is up to this task?

The Democratic Party might be the only thing standing between the people of the United States and an economy headed for increasing inequality, social unrest, and apocalyptic instability. If the Party fails to act, our path will lead us into a dystopian future that nobody wants. What's a party to do?

Tax Reform for Donkeys has answers.

First, Democrats must embrace free market capitalism and redefine it as it should be - subject to the will of a democratic republic. Capitalism itself is little more than a way to facilitate the formation, aggregation, and deployment of resources for the production of goods and services. For as long as goods and services have existed, so has capitalism! So whether we call ourselves corporate Democrats, centrists, moderates, progressives, or democratic socialists, we'll be living with capitalism anyway. Private ownership of the means of production has its place in the American economy, so let's just say it. We're capitalists.

That doesn't mean we'll let the plutocrats keep running the country. No, we can be good capitalists and still understand that free markets require an arbiter - the federal government - to keep them free and fair. That's what's missing in the perverted plutocratic capitalism we see today. We must examine the role of regulation together with taxation to restore symmetry in markets for goods and labor.

We don't need to soak the rich - much less eat them - to correct the fundamental imbalances in the economy. Our economic inequality was brought about by tax policy, and tax policy can rein it in. But the patches and fixes we've used in the past don't work - we need to finally address the root causes.

But how? The Democratic Party must for the first time in nearly a century, start from scratch and imagine a brand new system of federal tax revenue. Some of us realize that the present system rewards capital at the expense of labor, of course. But even more destructively, the present system penalizes the employment of labor, causing under-employment and keeping wages low.

Here's a radical new proposal that would eliminate the federal deficit, give every worker a 7.65% raise, reduce unemployment, and provide a progressive tax schedule with a top rate of 36% and a uniform standard deduction. It would simplify the system, and it's actually GOOD for the largest corporate employers. And it would permanently eliminate the most important structural causes of economic inequality. Skeptical? Good - but you should take a look for yourself, just in case I'm right.

A deep dive into the numbers in the federal budget proves that we can create a much fairer system that yields tremendous advantages to working people, the economy as a whole - and even the plutocrats who created the old system.

So join me in my appeal to our one last hope - the Democratic Party - for careful consideration of these proposals. Oh, and if you're an OEN reader who can't afford to buy a book, send your e-mail address to me here techcfo|AT|yahoo.cwithin a week and I'll send you the book in the electronic format of your choice.
Must Read 1  
Rate It | View Ratings

Larry Butler Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Thirty five years as a small business consultant, CFO, and university educator specializing in quantitative business and economic modeling - a suite of experience now focused on economic inequality. Carefully attributed data, thoughtful (more...)

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

Contact EditorContact Editor
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
   (Opens new browser window)

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Beginner's Guide to Pissing Off Conservatives

The Myth of Liberal Media Bias

Social Darwinism and Fox Republicans

Why Liberals Lose - The structural flaws in the foundation of American democracy

To Kill Our Elders

Myth #17: We're Number One!

To View Comments or Join the Conversation:

Tell A Friend