Is it really true that tax cuts for corporations and the super-rich create jobs? Mitt Romney is a poster child for what the wealthy do with most of their money — create low-wage jobs in other countries and stash the rest in the Cayman Islands and Switzerland.
The tax cuts the Republicans see as the cure for virtually every national problem have resulted in a massive redistribution of wealth from the poor and middle class to the top 1 percent at the rate of $1.1 trillion every year the past 30 years. To be sure, a few tax-cut crumbs get to “the little people,” but the lion’s share of the cuts go to corporations and the wealthy, leaving the rest of us to pick up the tab for financing the country.
An article by Paul Bucheit published by Common Dreams is titled “Add It Up: Taxes Avoided by the Rich Could Pay Off the Deficit.” Corporations are part of “the rich.”
In 1955 U.S. corporations provided 27.3 percent of federal revenue, compared with just 8.9 percent in 2010. Some of the wealthiest companies pay no taxes at all. Twenty-nine corporations from 2008 to 2010 paid zero (yep, that’s a goose egg) in taxes and were even refunded $10.6 billion. Under President Eisenhower in the 1950s, the top tax rate for individuals was 90 percent, and we had unparalleled prosperity.
If U.S. workers had reaped the gains of their productivity the past few decades, the median household income would now be $92,000 instead of $52,000. Who are the real job creators? The middle class and the working class — if they have enough money to buy products and services.
The ordinary U.S. taxpayer ends up subsidizing corporations and the super-rich by funding the infrastructure everyone needs and uses. So who are the real moochers?
— Joann Smith