A few of our stories and columns are now in front of the paywall. We at The Chief-Leader remain committed to independent reporting on labor and civil service. It's been our mission since 1897. You can have a hand in ensuring that our reporting remains relevant in the decades to come. Consider supporting The Chief, which you can do for as little as $3.20 a month.
To the editor:
For 45 years, a war has been raging. It doesn’t involve bombs, drones or jet fighters. The war is a sustained battle over the nation’s wealth between workers and billionaires. The richest few deploy tax cuts, deregulation and anti-labor policies in this lopsided conflict; well-paid lobbyists and self-serving politicians serve as their foot soldiers.
Billionaires have led a very successful campaign. The Pew Research Center calculated that the middle-class share of U.S. wealth dropped from 62 percent to 42 percent between 1971 and 2022, while the upper-income share went from 29 percent to 50 percent; the top 1 percent now hold 31 percent of national wealth.
This upward redistribution of wealth began in earnest under Ronald Reagan’s supply-side policies. President Trump’s partisan “big, beautiful bill” promises to further siphon wealth from the working poor to the rich.
The CBO analyzed the BBB’s impacts on debt and income, determining that debt would increase $3.8 trillion while Medicaid and SNAP are cut by $698 billion and $267 billion, respectively. Incomes among the top decile (tenth) rise by 10 percent, through lower taxes, over the next 10 years, while incomes for the bottom decile drop by 14 percent due to the aforementioned cuts. The CBO also estimates $78 billion in spending would shift from the federal government to the states, putting further pressure on already stretched local budgets.
As is often the case, there are traitors. Abigail Disney, along with 259 other wealthy individuals, signed-on to “Proud to Pay More,” an organization that lobbies for increased taxes on the well-off. Unfortunately, tens of millions of working class Americans also cross the battle lines when they repeatedly vote for supply-side Republicans.
Joseph Cannisi
8 comments on this item Please log in to comment by clicking here
J.Donne
The redistribution of wealth theory aims to transfer resources from the wealthy to those with lower socioeconomic status through taxation and welfare programs to reduce economic inequality and promote social welfare. However, this approach faces a challenge: human nature’s inherent flaws, which can lead to errors or lapses in judgment. Recognizing the allure of power, fame, and corruption is crucial.
In regard to I.R. S. contributions, the I.R.S. accepts all contributions-regardless of how small or large! There is no need to sign any declarations, or shout it from the rooftops. Do it modestly!
Wednesday, June 4 Report this
reenjoe
Redistribution of wealth isn't a theory; it is an outcome. The redistribution can go down to lower income individuals or upward to the wealthy. The latter (upward redistribution) has been the outcome over the past 45 years as wealth inequality has grown, and the middle class has shrunk. These are facts, not theories.
The redistribution trigger was supply-side GOP policies. When government deregulates industrial pollution, the clean-up costs shift from businesses to taxpayers. The same is true for increased healthcare costs as affected residents become sickened. When government removes Union and workplace protections, salaries drop and individual healthcare costs rise to cover on-the-job injury expenses.
Taxes on wealth and income have been progressive since the first U.S. tax law in 1861. Reagan "flattened" taxes beginning in 1981. The GOP has been following this practice ever since. Bush41, Bush 43 and Trump45 & 47 lowered top and corporate rates and raised the amount of wealth that can be inherited tax-free. Today a cop pays a higher tax rate than does a fortune 500 corporation.
As the federal government lowered taxes on wealth, it reduced state funding shares. Municipal employees have borne this cost in lower wage increases, higher healthcare costs/co-pays and pension reductions. All of this has been the OUTCOME of Republican policies and the votes that all too many working class people have cast for them.
The wealthy voluntarily donating to the IRS is no substitute for a progressive system mandated by law. Corporate heads are prohibited from doing this as they have a fiduciary responsibility to maximize profit.
Thursday, June 5 Report this
J.Donne
Reenjoe
In essence, your post underscores the widening wealth disparity over the past four and a half decades. This expansion can be attributed to supply-side economic principles and, potentially, policies enacted by the GOP, including deregulation, reduced labor protections, and lower taxation on wealth and income. These policies have resulted in an upward redistribution of wealth, favoring the affluent at the expense of the middle class and taxpayers. (Your assertions are highly speculative and lack substantiation.)
Now, let us address the question: Is the redistribution of wealth in economics a theory?
The answer is resounding affirmative. In the realm of economics, the redistribution of wealth is regarded as a “theory” that entails the transfer of income and wealth from specific individuals to others. This transfer is frequently effected through mechanisms such as taxation and welfare programs. The efficacy and ethical ramifications of this redistribution are subject to ongoing debates.
(Source: Wikipediaeconomics.com)
Friday, June 6 Report this
reenjoe
J. Donne, the proof is in the pudding. After Reagan, the rich got richer, and the middle class got poorer. Top tax rate pre-Reagan 70%, today under 40%. Inheritance exemption pre-Reagan $175,000, today $13.61 million. Facts, not speculation or unsubstantiated.
Keep voting GOP and keep griping about losing ground.
Saturday, June 7 Report this
J.Donne
reenjo
You claimed in your initial post that the redistribution of wealth is an outcome, but that’s incorrect. Economics, a social science, explains how societies function and how individuals interact, unlike natural science, which is "objective." Since economics is subjective due to human behavior and researcher perspectives, it explains the “subjective” nature of human societies, making the redistribution of wealth a theory.
Monday, June 9 Report this
reenjoe
J. Donne, you know what isn't a theory? The effects supply-side economics has had on our country. Besides the hollowing out of the middle class detailed in my last post, our national debt has exploded.
Reduced revenues from top heavy tax cuts and major recessions in 1987 & 2007, added to unnecessary spending on two pointless military excursions into the Middle East, a bloated "War on Terror" and runaway peacetime military budgets has taken our debt from $1 trillion in 1981 to $36 trillion and growing.
The U.S. ran up a $1 trillion debt over 200+ years and wars ranging from the Revolution, Civil War, two World Wars, Korea and Vietnam. In a short span of 45 years, we multiplied that debt 36 TIMES OVER. Economists estimate that over half that debt was lost revenue due to tax cuts. The compounding effect of paying interest on that lost revenue, accounts for another several trillion dollars.
I re-iterate, keeping voting GOP and keep griping about the lost American Dream.
Tuesday, June 10 Report this
J.Donne
reenjoe
You failed to address the main topic of discussion, which is the theory of wealth redistribution. All the information you cite and your assumptions are irrelevant to the debate. Therefore, I won’t repeat myself. I don’t express my opinions; I present facts relevant to the topic at hand.
5 days ago Report this
reenjoe
J. Donne, I thought the main topic of discussion is the above letter (Taxing Solutions) which points out that since 1981, privately held wealth in the U.S. has shifted or redistributed from the middle class to the top 10 percent, with the greatest concentration of wealth going to the top 1 percent.
The proximate cause was and continues to be GOP supply-side policy. Trump's "Big, Beautiful, Bill" follows this 45-year GOP trend of reducing taxes on wealth while cutting services to the poor. If passed, the BBB will worsen wealth inequality.
The letter also identifies how the GOP was able to successfully advance polices that hollowed out the middle class; millions of working-class Americans voted for self-harm by helping to elect Reagan, Bush41, Bush43, Trump45 and Trump47.
3 days ago Report this