NICK HANAUER OFFERS THE ANTIDOTE TO THE DISEASE SPREADING IN AMERICA: INCOME INEQUALITY


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We, Ourselves, of The Collective and The Meditators, have read and digested the recent article written by Nick Hanauer which was published in Politico. Our opinion of this article is that these steps must be taken to renew the middle class in America. As Mr Hanauer states in his article:

Here’s what I say to you: You’re living in a dream world. What everyone wants to believe is that when things reach a tipping point and go from being merely crappy for the masses to dangerous and socially destabilizing, that we’re somehow going to know about that shift ahead of time. Any student of history knows that’s not the way it happens. Revolutions, like bankruptcies, come gradually, and then suddenly. One day, somebody sets himself on fire, then thousands of people are in the streets, and before you know it, the country is burning. And then there’s no time for us to get to the airport and jump on our Gulfstream Vs and fly to New Zealand. That’s the way it always happens. If inequality keeps rising as it has been, eventually it will happen. We will not be able to predict when, and it will be terrible—for everybody. But especially for us.

Nick Hanauer

Every Human Being needs to read those last two sentences and understand fully what they mean in real terms. All the horrors that Americans seek to avoid for themselves and their loved ones will come to fruition if those in the 1% do not listen and heed the words of Nick Hanauer. We, ourselves, cannot predict the time or the place where this will happen; Hanauer makes it clear that delay will result in a tipping point that cannot be reversed in the passage above. This out to frighten those with so much to lose into action. It is a curious trait of homo sapiens sapiens that fear is most often a motivator to act in the opposite way to defuse a situation. Whether the spark that ignites the keg happens in Akron, Ohio by a 2nd Amendment supporter or in Shreveport, Louisiana by a minimum wage worker who kills herself in an act of defiance against an uncaring corporate monolith once that fuse is lit it will not be quenched.

Fear not being enough, Hanauer notes that a raise in wages for those toiling in minimum wage jobs today would be reflected in increased profit for the wealthy for the most basic of reasons– those with no disposable income today would be loyal power consumers when their paychecks are increased twofold. A person today who earns $7.25 per hour cannot afford to even dream of being middle class. A person who makes $15 per hour is given two great powers back; choices in lifestyle and the power to consume.

original_americanapocalypse

Detractors have written copiously about how damaging a minimum wage hike would be and Hanauer refutes these writings better than anyone The Meditators has taken note of in these modern times. We, Ourselves, of The Collective, speculate that these people only want to see America cast into ruins and all that has been built on the suffering of the Original Peoples and the anguish of Black slaves to be burned to a cinder made wet only by the croes of mothers for their raped daughters and the blood of fathers trying to protect their wealth to no avail.

The pitchforks are coming . . .

Qu’ul cuda praedex nihil!

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2 Responses to “NICK HANAUER OFFERS THE ANTIDOTE TO THE DISEASE SPREADING IN AMERICA: INCOME INEQUALITY”

  1. Neocon01 please take note:

    http://www.cbpp.org/cms/?fa=view&id=3505

    Close to half of U.S. households currently do not owe federal income tax. The Urban Institute-Brookings Tax Policy Center estimates that 46 percent of households will owe no federal income tax for 2011. [1] A widely cited figure is a Joint Committee on Taxation estimate that 51 percent of households paid no federal income tax in 2009.[2] (The TPC figure for 2009 also is 51 percent.) [3]
    These figures are sometimes cited as evidence that low- and moderate-income families do not pay sufficient taxes. Yet these figures, their significance, and their policy implications are widely misunderstood.
    The 51 percent and 46 percent figures are anomalies that reflect the unique circumstances of the past few years, when the economic downturn greatly swelled the number of Americans with low incomes. The figures for 2009 are particularly anomalous; in that year, temporary tax cuts that the 2009 Recovery Act created — including the “Making Work Pay” tax credit and an exclusion from tax of the first $2,400 in unemployment benefits — were in effect and removed millions of Americans from the federal income tax rolls. Both of these temporary tax measures have since expired.

    In 2007, before the economy turned down, 40 percent of households did not owe federal income tax. This figure more closely reflects the percentage that do not owe income tax in normal economic times.[4]
    These figures cover only the federal income tax and ignore the substantial amounts of other federal taxes — especially the payroll tax — that many of these households pay. As a result, these figures greatly overstate the share of households that do not pay federal taxes. Tax Policy Center data show that only about 17 percent of households did not pay any federal income tax or payroll tax in 2009, despite the high unemployment and temporary tax cuts that marked that year.[5] In 2007, a more typical year, the figure was 14 percent. This percentage would be even lower if it reflected other federal taxes that households pay, including excise taxes on gasoline and other items.
    Most of the people who pay neither federal income tax nor payroll taxes are low-income people who are elderly, unable to work due to a serious disability, or students, most of whom subsequently become taxpayers. (In years like the last few, this group also includes a significant number of people who have been unemployed the entire year and cannot find work.)
    Moreover, low-income households as a group do, in fact, pay federal taxes. Congressional Budget Office data show that the poorest fifth of households paid an average of 4.0 percent of their incomes in federal taxes in 2007, the latest year for which these data are available — not an insignificant amount given how modest these households’ incomes are; the poorest fifth of households had average income of $18,400 in 2007.[6] The next-to-the bottom fifth — those with incomes between $20,500 and $34,300 in 2007 — paid an average of 10.6 percent of their incomes in federal taxes.
    Moreover, even these figures greatly understatelow-income households’ totaltax burden because these households also pay substantial state and local taxes. Data from the Institute on Taxation and Economic Policy show that the poorest fifth of households paid a stunning 12.3 percent of their incomes in state and local taxes in 2011.[7]
    When all federal, state, and local taxes are taken into account, the bottom fifth of households pays about 16 percent of their incomes in taxes, on average. The second-poorest fifth pays about 21 percent.[8]
    It also is important to consider who the people are who do not owe federal income tax in a given year.
    TPC estimates show that 61 percent of those that owed no federal income tax in a given year are working households.[9] These people do pay payroll taxes as well as federal excise taxes, and, as noted, state and local taxes. Most of these working households also pay federal income tax in other years, when their incomes are higher — which can be seen by looking at the low-income working households that receive the Earned Income Tax Credit (EITC).
    The leading study of this issue found that the majority of households that receive the EITC get it for only one or two years at a time, such as when their income drops due to a temporary layoff, and pay federal income tax in most other years. The study examined the filers who claimed the EITC at least once during an 18-year periodand found that they paid a net of several hundred billion dollars in federal income tax over that period.[10] This finding shows that while some households will receive refundable tax credits in a given year whose value may exceed their payroll tax liability, they pay significant federal income taxes over time in addition to the payroll and state and local taxes they pay each year.
    The remainder of those who pay no income tax are primarily elderly, disabled, or students.
    The fact that most people who don’t owe federal income tax in a given year pay substantial amounts of other taxes — and also are net income taxpayers over time — belies the claim that households that do not owe income tax in a given year will form bad policy judgments because they “don’t have any skin in the game.”
    Furthermore, although the federal tax system is progressive overall, state and local tax systems are regressive and undo a significant share of that progressivity. There is nothing wrong with having one part of the overall tax system shield low- and moderate-income households, who pay substantial amounts of other taxes and generally pay federal income tax as well in other years.
    To substantially increase the share of households that owe federal income tax, policymakers would have to take such steps as: lowering the personal exemption or standard deduction — which would tax many low-income working families into, or deeper into, poverty; weakening the EITC or Child Tax Credit, which would significantly increase child poverty while reducing incentives for work over welfare; or paring back the tax exclusion for Social Security benefits, which would subject more seniors with modest fixed incomes to the income tax.
    This analysis now explores these issues in more detail.

    • This also a fallacy. As Hanauer noted he does not buy 3,000 cars in a decade he buys 3. He does not buy 400 shirts when he shops for new clothes he buys four. The rich do not consume at the same rate they earn. They do buy long term purchases of more expensive items such as jewelry and aircraft but they do not make these purchases often enough to spur the economy. A rise in the minimum wage to $17.10 per hour would do just that giving low income workers the ability to buy cars, homes, clothes and more fueling the need for more hiring and greater prosperity for the new middle class.

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