Did you know that when federal programs were cut by the GoP House those cuts resulted in each state receiving far less in federal dollars, and that each state then cut the amount municipalities received, which meant less money to school districts and boroughs, which meant many local taxes had to increase?
The reality of this is, the tax burden is then shifted to the middle and working class as these taxes are not proportionate to income. (This is the math portion of the conversation)
This is the same mathematical issue that arises when Social Security and Medicare are cut, since the tax is only on the first $113,100, up from $110,500 last year, and the main beneficiaries of the benefits are the middle and working class, any change in either benefit or benefit age greatly impacts the middle and working class. Not the wealthy. Why? Well these taxes are not income proportionate either.
In essence, the entire conservative budget and policy is at this point to continue to cut funds to education and infrastructure (i.e. roads, police, safety and other funds that usually go to each state) and to cut benefits while increasing the age and requirements to receive benefits like social security and medicare. Basically using an income disproportionate methodology to ensure they can say it is about entitlements, ignoring that this method ensure the tax burden falls disproportionately on the middle and working class.
This is the truth about trickle-down theory, it is all about income redistribution from the working poor and middle class to the rich. So let's sum it shall we?
The GoP wants to continue to cut education funds at the federal level, which means each state has less funds for public elementary, high school and college, which means local school and property taxes go up, which is an inherent tax on the middle class and working poor. Remember, these taxes are not income proportionate as Federal and State Income taxes are.
This also means the cost of college increases, which is another burden on the middle and working class, especially since the GoP also wants to cut more funds from Pell Grants and student loan programs.
Why is this unfair? Well, the wealthy don’t use our public schools for the most part. Nor do their children need Pell grants and students loans. Honestly, Romney was clear during the campaign, if kids can’t afford college, they need to pick a cheaper school, or just borrow the money from their parents.
So mathematically, if your property tax increases by 10% on $5,000, that is a $500 increase. Not much if you make $500,000, but quite a bit for the average family who might make $50,000. Let’s add in tuition, instead of $10,000, let’s say tuition increases to $15,000. Again, not much of a problem for our wealthy executive making $500,000 per year, but impossible for the worker at $50,000. Are you beginning to see the problem?
Right. Moving on.
When the GoP talks about raising the retirement age and cutting benefits, once again, that taxes the middle class and working poor. Once again, using candidate Romney as our base line, he is already retired, even though he made over $14,000,000 according to his 2011 tax return (or $21,000,000 according to the 2011 draft tax return), but he is retired. So raising the retirement age does not impact him, nor does a change in benefit. Does this seem income proportionate? Of course not.
And you see this trickle-down policy really become an avalanche in every state that has a GoP controlled state house. Where they further cut education, health, welfare and other programs. Putting further burden on municipalities. Who then have no choice but to raise property taxes.
When you have a borough, let’s call it Phoenixville, with excellent schools and a diverse socio-economic base, our district is left with little choice but to raise taxes to meet our fiduciary financial burdens. This means that all our seniors, whose benefit the GoP wants to cut, have to pay more property taxes with less income. But do people understand and blame the conservative fiscal policy? No, they simply put the blame on our schools and “greedy” teachers, overpaid Administrators and “runaway” spending by School Boards.
It also means that single parents and two parent working families have to pay more to educate their children, pay more in local taxes, saving less, and having less in their retirement account, which they won’t get for another 5 years if the GoP has their way.
While corporations are being given millions in state and federal tax entitlements, the GoP wants to continue to take away our ability to educate our children, care for our seniors, ensure our Veteran’s and disabled receive medical care and our nation can maintain its roads, bridges, tunnels. All this while police forces, firefighters, teachers and post offices are asked to take pay cuts, layoff staff and give up pensions while they insist on more tax cuts for corporations and the wealth. Still not income proportionate is it?
Do you get it now? Do you see the “Grand Plan” the GoP keeps talking about? Do you understand what happens to the middle and working class if this continues?
This constant carping that liberals want to redistribute wealth is a very elaborate evasive tactic to hide the truth from you, the taxpayer. It is not the Democrats who are stealing your retirement or your savings, it is conservatives who are bleeding our bank and retirement accounts to fund their corporate welfare entitlements.
Let’s say enough is enough. Are you ready? Call your Senator, contact your Representative. Write to your Governor. Please share this, email it to family and co-workers, give it to friends for Valentine’s Day. Post it to your Facebook wall, tweet a link. Print flyers and hand them out at Superbowl Parties. This is too important to ignore.
Contact your local Democratic Committee. Attend School Board and Council meetings. Do not accept the simpleton notion that more taxes is “bad” and will “hurt” business and they then won’t create jobs. We have had a decade of that simpleton nonsense, and guess what? They didn’t create any jobs, they did create amazing wealth for the already wealthy.
I’m done for now. Thanks for reading. And please, if you are ready to put an end to the nonsense, let me know. I’m ready too.