By Alex Showerman | 0 comments
Warning: This piece is a wee bit wonky, but the information is important for all progressives to know --so I hope youll bear with the wonkiness and share this with your friends. On Friday, we received great news as a nation. For the first time since the financial collapse our unemployment rate hit 7.8 percent. We still have a ways to go to fully recover, but the positive trends we have seen represent some very good news for the American economy. 1. This represents 31 straight months of job growth 2.In those 31 straight months of job growth, the economy added roughly 4.5 million private sector jobs. 3.When President Obama first took office the country was in an economic free fall, but Barack Obama is a net job creator. These trends show that Democratic policies not only stopped the free fall our economy was in, but actually created jobs at a significant rate. Could you imagine where we would be if Republicans had not blocked the jobs bill? These very same Republicans twist and distort the facts to make it seem as though they are the only ones who hold the keys to economic prosperity. The thing is, they have proposed onlymoreof the same bad policies that got us into this mess in the first place -- cut important investments in our country to pay for more tax cuts for Americas wealthiest individuals. The strategy of cutting taxes has not worked in the past and will not work in the future. Nor will it lead to economic prosperity for American families. Lets look at the trends again, but this time, much more long term. Since 1945, our marginal tax rate for the top .01 percent has fallen from nearly 60 percent down to roughly 24 percent. The Congressional Research Service, the non-partisan research arm of the Library of Congress, recently conducted a study of this drop in tax rates in America and its impact on economic growth. Theanalysis examined whetherlowering taxes actually increases investment and adds growth to the economy. Guess what was discovered after looking closer at six decades of economic data? Here it is straight from the experts atCRS: The results of the analysis suggest that changes over the past 65 years in the top marginal tax rateand the top capital gains tax rate do not appear correlated with economic growth. The reduction inthe top tax rates appears to be uncorrelated with saving, investment, and productivity growth. Thetop tax rates appear to have little or no relation to the size of the economic pie.However, the top tax rate reductions appear to be associated with the increasing concentration ofincome at the top of the income distribution. There is no correlation between lowering the top tax rates and economic growth. The only thing tax cutsfor the wealthy create is a widening gapbetween the wealthiest Americans and the poorest. If we look at an examination of where the top tax rate is and the rate of economic growth, it seems the lowerthe rate goes the less our economy grows.The Center for American Progress found that if you ranked each year since 1950 by overall job growth, the top five years would all boast marginal tax rates at 70 percent or higher. America is most successful when we reinvest in our country.Previous generations of tax payerspaid for important investments like the interstate highway system and the internet.Previous generations of tax payerspaid for theJustice Department to protect intellectual property and give ideas value. When we as a country come together and invest in moving forward, we prosper together. Right now there is a Tea Party Majority in Congress that wants to take America in the opposite direction. This majority wants to end investments in the future so that we can give larger tax breaks towealthy Americans. The only thing Mitt Romney and a Tea Party Congress will accomplish isstagnating the economy while their wealthy cronies get richer and richer.I don't need to tell you that American families will suffer. It's time that we kick out the Tea Party Majority. Its time to mobilize and organize to move the country on the right path for economic prosperity. It's time you join fellow DFA members in pledging to vote Democratic this November so that we can kick Paul Ryan, John Boehner and Eric Cantor out! Sign your namehere.
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