To reduce inequality, we need higher marginal tax rates.
Initially, higher rates will provide revenue that the government can use for public services. Over time, they will increase the likelihood that our society will successfully maintain strong infrastructure, excellent and affordable education, healthy citizens, and a growing economy. Finally, a very high top rate will help eliminate the massive inequality of wealth between the rich and the poor in the United States – and its concomitant ills of lower social mobility, more crime, and deteriorating social fabric.
The United States became an economic and moral world leader in the decades following World War II because of its industrial development and its social programs to help Americans buy homes and go to school, and the hard-earned victories of the civil rights movement. Throughout that era, the United States imposed a much more just and progressive system of taxation, with rates even higher than 90%. What that shows is that high taxes do not prevent growth and are not the scourge of socialism. In fact, they are as American as integration, innovation, and economic expansion – other hallmarks of the United States during the 1950′s and 1960′s.
The United States cannot be great with its current level of inequality. As you can see, inequality has increased as the tax rates fell – exactly what you should expect.
THE TOP 10% TAKING MORE OF AMERICA’S INCOME
AVERAGE INCOME OF THE TOP 1% VERSUS THE BOTTOM 90% (STAGGERING)
Inequality is one of the most important issues facing the United States today. Unfortunately, it results from a bipartisan commitment to serve monied interests. Accordingly, people must convince their leaders to stop serving the rich, and start serving the public by enacting a simpler, more progressive tax code. Please stand with ACED by contacting your representatives and letting them know that (1) you want them to significantly raise top tax rates, (2) it is the right thing to do for our citizens and our economy, and (3) you will not support public officials who oppose it.