Occupy Movement Endorsed by Washington – Roger Ingalls

After listening to President Obama’s State of the Union address, I couldn’t stop smiling. Similarly, I grinned during the last few months of the presidential election. The Occupy Movement is routinely portrayed by mainstream media and conservatives as a failure; however, reviewing the political chatter during the recent elections and the President’s speech on Tuesday, the Occupy influence is front and center.

Prior to the Occupy Movement, there was no media or political focus on the destruction of the middleclass, tax breaks for the wealthy, tax loopholes for corporations or the disparity between the 1%ers and 99%ers. The movement brought attention to all these topics and they were the main sound bites throughout the entire election season. Fast forward to Tuesday and a significant portion of the President’s time was dedicated to Occupy topics: 1) rebuilding the middleclass, 2) increasing wages for many Americans, 3) returning a fair tax burden to the wealthy and big business, 4) closing tax loopholes for corporations and 5) stopping corporate off-shore cash hoarding.

When comparing the Tea Party and Occupy Movements, the latter has been much more beneficial to Middle America. The Tea Party has done nothing but create gridlock in Washington, slowing economic recovery. They’ve also placed political handcuffs on Republican Speaker of the House, John Boehner. He’s ineffective because the fanatical right is holding the larger conservative party hostage. Even though the Occupy Movement hasn’t received due credit, its original talking points are on the tongues of politicians today. In addition, a fairer tax burden was realized in January when taxes were increased on the wealthy; an original Occupy demand.

The media is no longer discussing the Occupy Movement but Washington’s politicians are endorsing it through action and sound bites.

Roger’s Random Rants

At the beginning of the year I promised to be less negative and focus on positive developments and ideas that benefit mankind and the environment. Well, I lasted two months…it’s time for some ranting.

The big debate this week is the corporate tax rate. Like clockwork, the Republicans want to reduce the rate for the big guys from 35% to 25% which I find utterly grotesque. But wait, we have President Obama who will apply some sanity in Washington, right? Oh yes, he is fighting really hard. He’s stepping up to the plate to take a swing for the American working-class with a big fat wet noodle. The President only wants to reduce the corporate tax rate to 28%. I’ve been an Obama supporter but people, we are getting screwed.

Check out these three charts. The first one shows corporate taxes as a percentage of income for companies that reported profits. As we can see, the effective rate has been cut in half starting with the Reagan years (1981). They’re only paying slightly more than five percent today.

The second chart shows the rapid increase in the national debt thanks to the change in corporate tax rates, again starting in 1981 (Reaganomics-Era).

This last chart shows the growing wealth disparity between Middle America and the wealthy. Can you guess when this disparity starts? You got it! It starts in 1981 with the lower taxes for corporations and the wealthy.

The Conservatives are puking the same old story, “lower taxes for the rich and corporations will create jobs”. After thirty years of failure, it’s surprising that half the population still believes this economic vomit. Big business continued job outsourcing and, adjusted for inflation, Americans make less today than they did thirty years ago.

Let’s try a novel approach; instead of giving gifts to big business before they create jobs why don’t we let them earn it. Increase the tax rate to 50% and then give tax breaks based on year-over-year analysis of job creation. If they create more jobs in the US than overseas (on a percentage basis) they get a tax break. The more they create the bigger the break.

I don’t understand why more people don’t get Mad as Hell with these crazy conservative tax breaks. History has proven that the middle class must pick up the tab for breaks given to Corporate America.

How much more of an economic whipping are you willing to take?

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Roger Ingalls is well traveled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.