Tea Party? I’ll Drink to That
By Larry Johnson on April 15, 2009 at 3:38 PM in Current Affairs
Many of my progressive to liberal friends are beside themselves over the tea parties. Some are convinced this is just a manipulative effort of Republican billionaires. Nonsense. Let me tell you why I think it is a good first step and could signal something positive for the future.
First, personal disclosure. My wife and I, according to Barack Obama, are wealthy. Our combined income is above $250,000. Of course we live in Washington, DC where a house that you would buy for $110,000 in Kansas City, Missouri goes for more than $500,000 if you live within seven miles of downtown Washington. So the $250,000 sum, as a measure of wealth, is not terribly relevant. If cost of living is the only consideration then you are better off in Kansas City with $250,000 than you are in Washington, DC.
We have not always been this fortunate. In 1978 my wife and I lived in Honduras running a clinic and a community development project and earned the grand total of $3000 a year. So I am not out of touch with those who live on the lower end of the economic spectrum.
Second, we pay a shit load of taxes and I am not happy about it. I do not expect sympathy from those of you who are making less than $60,000 a year. But I do want some understanding. The amount we pay to the Federal Government and to Maryland is ridiculous. I am not seeing value for my dollars.
The tax code does favor the very wealthy and penalizes those who make more than $250,000, who do not have at least $4 million in the bank. Why? Let me give you a scenario. Assume you have paid off all of your debts and that you have $4 million in the bank. Let’s assume most of that money is invested in tax free bonds. If you are earning 5% on tax free bonds you are going to have a tax free income of $200,000. How many of you could afford to live on $200,000 a year with no taxes?
So, if you are worth $50 million or $100 million you have a lot of terrific options to legally avoid taxes. The bulk of the tax burden now falls on people who are making $250,000 or more but are not relying on tax free investments.
I am not opposed to paying taxes. I am willing to pay a fair share to ensure all Americans have access to health care, for example. But our current system is rife with incentives for both Republicans and Democrats to keep spending money rather than cutting government programs.
One other complaint–the current movement would have more credibility if it had started when George Bush was busy spending us into the poor house. It does not help that the Republicans signed up for much of the Porkulus bill in the Senate. They are all guilty and we do need a financial and tax revolution in this country.
Here is the fundamental truth about the economy and taxes–Barack Obama, with the full cooperation of the Democratics controlled Senate and House, are going to quadruple the federal deficit this year and continue to run up an enormous federal debt. That level of spending will inevitably bring about an enormous inflationary wave and will undermine the United States’ position as a world financial power. That is not a partisan reality or fear in my book.






















