There are three major trends in American society that must be addressed when the Senate next week debates the federal budget. First, the United States has the most unequal distribution of wealth and income of any major nation in the industrialized world, and the gap between the very rich and everyone else is growing wider. Second, it is a national disgrace that we have, by far, the highest rate of childhood poverty of any major country on earth. More than 18 percent of our kids live in poverty. Third, year after year, we have had record-breaking deficits and our national debt will soon be $10 trillion. That is a grossly unfair burden to leave to our kids and grandchildren. It also is economically unsustainable.
I plan to offer an amendment that addresses these issues, to change our national priorities, and to move this country in a very different direction than where we have been going in the last seven years.
According to the latest available statistics from the Internal Revenue Service, the top 1 percent of Americans earned significantly more income in 2005 than the bottom 50 percent. In addition, the Congressional Budget Office (CBO) recently reported that the wealthiest 1 percent saw total income rise by $180,000 in 2005. That is more than the average middle-class family makes in three years. The CBO also found that the total share of after-tax income going to the top 1 percent hit the highest level on record, while the middle class and working families received the smallest share of after-tax income on record.
Meanwhile, while the rich have become much richer, nearly 5 million Americans have slipped out of the middle class and into poverty over the past seven years, including over 1 million of our children.
We have a moral responsibility to put children ahead of millionaires and billionaires. That is why, during the Senate's consideration of the budget resolution, I will offer an amendment to restore the top income tax bracket to 39.6 percent for households earning more than $1 million a year.
Restoring the top income tax bracket for people making more than $1 million to what it was in 2000 would increase revenue by $32.5 billion over the next three years, according to the Joint Tax Committee, including $10.8 billion next year alone.
I would devote that revenue the needs of our children; job creation; and deficit reduction.
Instead of giving $32.5 billion in tax breaks to millionaires and billionaires, my amendment would, over the next three years, provide:
• $10 billion for the Individuals with Disabilities Education Act to help about 7 million children with disabilities and, in the process, relieve pressure on local property taxpayers.
• $5 billion for Head Start -- a program which has been cut by more than 11 percent since 2002. Today, less than half of all eligible children are enrolled in Head Start. Only about 3 percent of all eligible children are enrolled in Early Head Start. My amendment would begin to correct this situation.
• $4 billion for the Child Care Development Block Grant. Today, due to inadequate funding, only about one in seven eligible children are able to receive federal child care assistance. Already, 250,000 fewer children receive child care assistance today than in 2000.
• $3 billion for school construction. According to the most recent estimates, schools across the country have a $100 billion backlog in badly-needed school repairs. Investing $3 billion is a small, but important step to help repair crumbling schools across the country and in the process create tens of thousands of jobs for painters, carpenters, electricians, and construction workers.
• $4 billion for the Low Income Home Energy Assistance Program so that low-income families with children, seniors on fixed incomes, and persons with disabilities will be able to stay warm in the winter. After adjusting for energy prices and inflation, the heating assistance program has been cut by 34.5 percent or $1.3 billion compared to 2002. My amendment would begin to reverse this trend.
• $3 billion for food stamps, so that we can begin to reduce the growing number of children and adults living with food insecurity.
• $3 billion to reduce the deficit.
This amendment is a fiscally responsible way to reduce childhood poverty, address an income gap greater than at any time since the Roaring Twenties, and lower our deficit.
Senator Bernie Sanders, an independent from Vermont, is a member of the Senate Budget Committee.
democrats get nothing done because they are always afraid of what the Republicans will say and do. by your critique of action as dumbness, you outline the reaganomics perspective but offer no solution to the very real problems facing us today. "no strategy for winning?" what have you won if you won't fight for "fantastic" ideas?
You should be applauded for your enlightened direction.
While most of us accept the fact that the future of any nation lies in the hands of its children, why is there so much reticence to fund their education? ALL their education.
http://pacificgatepost.blogspot.com/2008/02/stanford-revolution-in-education.html
With the burden of the onerous loans they now carry, America's children have become members of a new indentured class.
http://pacificgatepost.blogspot.com/2008/03/executive-compensation-common-sense.html
Fixing the problem starts with understanding the problem, paying attention, stopping the abuse. That will minimize the chances of a complete "breakdown.
I've been studying this problem for nigh on half a century, still have more questions than answers. Some years back, the tax scale was 91% for over $200,000 income. I doubt anyone ever paid that, but no matter. That was at the point I thought, "It's steal from the rich time." And sure enough, time passes and suddenly it is 'steal from the middle class', eeeek!
Back then, the Wall St. Journal used to publish a list of millionaires who paid NO tax. Loopholes everywhere, eh? Recently perusing Treasury data, I note a median income now pays 6.3% tax and over $200,000 is 22.8%. Well. I guess progressive scales are not progressive enough. So, I'm working on a really progressive curve: it start at 99% on top income and stops at the poverty line. Big hump in the middle, way big. If I get the curve right, no loopholes, no exemptions, we'll have equality, by God.
Alternatively, and seriously, I'm wondering about the top fractional percent, can't find any Gumby statistics (government rubbery figures!) as to how much, if anything, they pay. IF I'm right, and everyone paid say 9% of income, no loopholes, no deductions, no lurks, we'd solve most economic problems in no time at all.
Only problem is, you have to be elected to enact it. Huckabee talked about it for a while, but I havent heard much of it lately.
I don't care if people are richer than I am as long as I can work a bit. I'd like the dollar to be strong so I don't have to work to hard and I can focus on art...is that anywhere on the radar? Why do we have hearings about baseball players and drugs? No body really cares once you stop clammoring for attention.
I do want universal health care but I'm not expecting that heroic efforts be taken to save my life...perhaps if the government would abolish the IRS and tax exemptions people would have enough money to support the organizations that specialize in lending assistance. I don't like having to report to the government every year, but I do believe in a strong government, just not a big one...especially one that doesn't blink when confronted with the percentage of its citizens it has incarcerated in an expensive and ineffective prison system...bring back the lash for political corruption.
That is a very good start.
Thank you Bernie, for your "Restore economic justice act."
And the estate tax needs to be reinstated.
And more than suggesting legislation, the Dems have to sell it, like the GOP knows how to sell it. About 20% of the US population thinks they will be affected by the estate tax that would affect about 1% of the poputlaion.
But somebody seems to have decided that wee are to rule the world. The United States has onlt 4.6% of the world's population. I may have missed it, but when did that other 95.4% vote us Boss over them?
I have been getting along well with all my neighbors for a long long time. But then I never try to tell them how they must behave and they don't try to tell me how I should.
I wonder if that policy wouldn't scale up.
Look at what we could do if we spent only half as much as the whole rest of the world. We could improve education, support more rersearch, and build up our infrastructure so that we would be more productive in the future.
Or, of course, we can continue our present policy and grow impoverish ourselves slowly.
Most people go under from huge medical bills that no-one can seem to justify in the medical profession.
This is one instance where government intervention is a necessity.
The medical profession and drug companies have been pandered to by the republicans for way too long.
Mandatory medical insurance would have to be accompanied by federal control of overpricing and greed.
Someone has to stand up to them and stop their destruction of our economy.
Revision of the bankruptcy act would be a help as well.