Sign Bernie's Letter to the President
Dear Mr. President,
This is a pivotal moment in the history of our country. Decisions are being made about the national budget that will impact the lives of virtually every American for decades to come. As we address the issue of deficit reduction we must not ignore the painful economic reality of today -- which is that the wealthiest people in our country and the largest corporations are doing phenomenally well while the middle class is collapsing and poverty is increasing. In fact, the United States today has, by far, the most unequal distribution of wealth and income of any major country on earth.
Everyone understands that over the long-term we have got to reduce the deficit -- a deficit that was caused mainly by Wall Street greed, tax breaks for the rich, two wars, and a prescription drug program written by the drug and insurance companies. It is absolutely imperative, however, that as we go forward with deficit reduction we completely reject the Republican approach that demands savage cuts in desperately-needed programs for working families, the elderly, the sick, our children and the poor, while not asking the wealthiest among us to contribute one penny.
Mr. President, please listen to the overwhelming majority of the American people who believe that deficit reduction must be about shared sacrifice. The wealthiest Americans and the most profitable corporations in this country must pay their fair share. At least 50 percent of any deficit reduction package must come from revenue raised by ending tax breaks for the wealthy and eliminating tax loopholes that benefit large, profitable corporations and Wall Street financial institutions. A sensible deficit reduction package must also include significant cuts to unnecessary and wasteful Pentagon spending.
Please do not yield to outrageous Republican demands that would greatly increase suffering for the weakest and most vulnerable members of our society. Now is the time to stand with the tens of millions of Americans who are struggling to survive economically, not with the millionaires and billionaires who have never had it so good.
Respectfully,
Sen. Bernie Sanders
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The reason that none of these companies paid the full statutory amount is because of the tax breaks, deductions, and loopholes that exist in the U.S. tax code that allows them to avoid paying taxes. The U.S. needs to restructure the tax code in order to prevent corporations from using the special accounting techniques they are so used to. By removing the loopholes and lowering the federal statutory rate to one that is more in line with the 26% corporate tax rate of other developed nations (http://bit.ly/mOpkXL) the U.S. will be able to attract more business globally while generating more tax revenue. Until these changes are made the U.S. will struggle to generate corporate tax revenue at the levels it needs to in order to reduce the deficit.
The reason to lower the tax rate from 35% to around 26% (max of +3) is twofold. Since the U.S. doesn't collect 35% of income from almost all American corporations 26% would be a more realistic target of tax revenue. By lowering the statutory tax rate to around 26% the U.S. would automatically make itself more attractive to foreign businesses who look at other countries that have rates lower than that. The hope is that if a foreign business is looking to grow and invest their resources that they would rather do it in America with say a 29% rate because of other benefits of investing in the U.S. than in Sweden which has a tax rate of 26%. This is same argument that former President Clinton made in #12 of his article "It's Still the Economy Stupid" (http://bit.ly/mNGV25)
We need to unite together and stop funding this government. Congress will not stop funding the wars. Now it is the people's turn.
The one that should sacrifice is government. Government needs to be pared down with states picking up most of the functions currently dictated by the federal overseers. The federal government needs to sacrifice with less. The federal budget should be cut in half then next year it should be cut in half again and cut again until it gets to a size that can be properly managed by those in Washington.
If it should be a "shared sacrifice", then everyone needs to pitch in an additional 2% including the poor.
rep. sanders is 100% correct about who did in fact create the crisis we now find ourselves is ~ and it was not "the government" ~ though a lack of sufficient regulation and oversight of wall street shenanigans certain played a role. and now, it's the self-protection of people like you in the top 10% who are trying to trap us here. if you are indeed in the top 10%, then i probably earn about 10% of what you earn ~ and the odds are good i payed just as much (if not more) in taxes.
you've had it easy long enough. if the selfishness of your ilk continues, the middle class will become a thing of the past ~ and then what do you suppose will become of this nation?
The government is irresponsible with the publics money and they aren't the ones that should bail them out of their self made problems. Government should suffer to the point where they learn their lesson.
But if the "sacrifice" needs to be shared, then lets share it with everyone. Raise the taxes on the poor as well as those that work for theirs so everyone feels the same pain and then votes for a responsibloe government.
The middle class in this country is already dead, they just don't know it. They were killed off by the government school system.
Social Security recipients have not had a cost of living increase in a few years. Prices for everything have gone up and many of us on fixed income are being knocked off the economic ladder.
I've had State Farm HO insurance more than 25 years. Now SF increased my premiums an aditional $65 monthly, representing a 23% rate increase. This additional cost put my budget over the edge and they might as well have kicked me in my teeth as a reward for being a loyal and profitable customer.
Five years ago, I had a net worth of $95K and a job and my Social Security retirement benefits. Now I am underwater and have only my fixed Social Security income and no net worth due to the housing crisis.
I Many people with Reverse Mortgages requiring homeowner insurance are on Social Security now, and Social Security beneficiaries are NOT getting COL increases while everything else they need is going up.
2 years ago I lost my job when my employer had to go out of 33 year old business. 5 years ago I began treatment for lung cancer, and that caused additional expenses for me even on Medicare.
What can we do?
There was a time when the nation's budget was never intended to be this important to the average American.
"In fact, the United States today has, by far, the most unequal distribution of wealth and income of any major country on earth."
And why is this a problem to the Senator?
"...while not asking the wealthiest among us to contribute one penny."
You mean they don't contribute anything at all or not enough to placate the Senator from Vermont?
"The wealthiest Americans and the most profitable corporations in this country must pay their fair share."
Does the Senator have a specific amount or percentage he'd like to share with us that would quantify "fair share"?
"At least 50 percent of any deficit reduction package must come from revenue raised by ending tax breaks for the wealthy and eliminating tax loopholes..."
I'd suggest the Senator wade into the tax code and see ALL the loopholes...and then close them all. Don't just play favorites.
"A sensible deficit reduction package must also include significant cuts to unnecessary and wasteful Pentagon spending."
Agreed. While you're at it Senator look at every other federal agency for wasteful spending.
Actually, no...
Federal waste - http://sanders.senate.gov/newsroom/news/?id=b229ec16-64f9-4e6f-80f0-a6733854eee9
Jobs - http://sanders.senate.gov/newsroom/news/?id=3d704acb-6017-4935-a808-c86250089ddb
Outsourcing - http://sanders.senate.gov/newsroom/news/?id=54dbc4f8-7719-43a2-8f1a-5b0da9ad815a
Gas prices - http://sanders.senate.gov/newsroom/index.cfm?&rid=0c3078f2-d472-4b7e-8a3f-87e67ce93f5c&q=Must%20Read
More jobs -http://sanders.senate.gov/newsroom/news/?id=9fc05dc7-85d0-4d30-a899-790decf1685f
I would add that Sanders has been on the budget committee for years, including through the Bush era.
"The Pentagon has long said it could determine what happened to the money if given time, but it has yet to do so."
What part of my initial response disagreed about wasteful Pentagon spending?
from: Jobs -
"First, at the forceful urging of Sen. Bernie Sanders (D-Vt.), the Smithsonian on June 8 opened an all-American-made gift shop in the National Museum of American History."
What's next, requiring all federal purchases be made strictly from union and green based manufacturers?
from: Outsourcing -
"Here's something that will be of little comfort to the approximately 100 manufacturing workers at Thermal Dynamicsin West Lebanon who are being laid off as their jobs head south to Texas and Mexico."
Why do you think the jobs moved?
from: More jobs - titled "American Jobs Shipped Overseas" -
"U.S.-based multinational corporations have been hiring overseas while cutting jobs in this country."
They aren't American jobs. The jobs belong to the employers who adjust according to economic demands.
Senator Sanders can't (or won't) define "fair share" when it comes to "shared sacrifice". It's easy to demagogue but harder to provide a concrete number. There is waste throughout the federal government, from social programs to defense. And if Bernie really wants to make a difference he should really look at the joke that is the US tax code first - all of it.