September 15, 2005 – Vol. 41, No. 5

 

Another Bush assault
on the poor

Most Americans enjoy a relatively comfortable life style. Those encountering financial difficulty can find assistance from the safety net which has been established by programs of the Democratic Party over the past several decades. The existence of the safety net gives most Americans a high degree of confidence about their future well being.

Because of this confidence, Republicans have been enormously successful in diverting voters’ attention away from personal economic issues, even while there has been a policy to tear the safety net to shreds. Republicans plan to weaken the safety net system by destroying its foundation — progressive taxation.

Ninety percent of the nation’s income came from taxpayers who earned no more than $117,001. This includes both single and joint filers. Those earning above that amount were responsible for 10 percent of the national revenue, but the distribution in that group is by no means equal. A small group of the super rich, only 1/10 of the top one percent, 145,000 taxpayers earning more than $1,589,608, accounted for 7.4 percent of the nation’s income in 2002.

An imbalance in the distribution of income has developed. The Bush tax plan is designed to let the super rich retain as much of their wealth as possible. Contrary to his assertion that most of the tax cuts go to low and middle income Americans, a New York Times analysis finds that 53 percent will go to taxpayers in the top 10 percent over the first 15 years of the cuts.

The analysis also found that the 400 richest taxpayers, those with a minimum income of $87 million, pay the same percentage of income, Medicare and Social Security taxes as those earning $50,000 to $75,000 per year. This disparity is unconscionable.

The Republican strategy is to reduce tax revenue so severely that there will be insufficient funds to finance the cost of safety net programs. It is difficult to believe that the overwhelming majority of Republican voters who are not in the top 10 percent income bracket fully support this strategy.

Citizens tend to vote their economic interests, especially when they believe their welfare is at stake. With so much disinformation bandied about over the Bush Tax Program, it is quite conceivable that many Republicans did not realize how their interests were compromised by the Bush policies.

However, there is a sign of hope. Bush’s assault on Social Security has aroused opposition from some Bush supporters. Estimates are that 17-22 percent of those who voted for Bush in 2004 oppose his Social Security proposal and have lost faith in Wall Street.

There is more economic stress in America than is generally acknowledged. There has been a fivefold increase in personal bankruptcies from 1980-2002. Homeowners have substantially increased their home equity borrowing to meet financial obligations. And employers have placed more of the cost of health care and pensions on their workers’ shoulders.

Despite these problems, Republicans have successfully diverted voters’ attention to such inane issues as “family values.” Business Week found that white men with average incomes and minimal education are more insistent on sustaining the safety net despite voting Republican. This should be the target audience for Democratic strategies.

In order to prevail, Democrats must have a pro-active policy. It is not enough merely to be “Republicans Lite.” If the party fails to do this they might even begin to lose young African Americans who have no personal memory of the Democrats involvement in the Civil Rights Movement. The time is ripe. There is considerable anger in America over the Administration’s contempt for the poor of New Orleans and the ever-rising gasoline prices.

 

Melvin B. Miller
Editor & Publisher
Bay State Banner

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