Showing posts with label progressive tax schedules. Show all posts
Showing posts with label progressive tax schedules. Show all posts

Tuesday, July 28, 2020


Manifesto for the Next Four Years

We Know What Needs to be Done

William Sundwick

Joe Biden can get there, with help from Congress. But it will take more than a historic landslide on November 3. It will take clear-eyed commitment from the American (and world) electorate – no equivocating, no shrugging off responsibility, no media “bothsidesism.”

There are things to be done. And there isn’t much time. Right now, in our COVID summer, we should start by acknowledging that old saying “politics is a contact sport” may mean virtual contact sport. Canvassing for voter registration and actual voting can still happen, selectively, and cautiously – but it is much higher risk than in the “Before Times.” Social media discussion groups, sub-Reddits, and email lists must pick up the slack. And nobody ever answers their phone anymore. But volunteer opportunities do exist in all these areas.

Polls currently provide supporting evidence that a well-managed Biden campaign, together with down-ballot help from the DNC, may well lead to that historic landslide. But I seem to recall similar confidence in 2016. We know how that went!

The Biden strategy thus far seems to be to let the President hang himself – minimize his own exposure. It seems to be working.

After Labor Day, however, more will be required. Nobody will get a “convention boost” this year since there will be no live Party Conventions. That goes for Senate and House candidates as well. The battle will continue to be waged largely in the media and virtual worlds.

Biden’s “Unity Task Forces” were a good idea. The 5-3 split on each of the six task forces, between Biden people and Sanders people, was a stroke of genius. Bernie was a full participant in naming members from the beginning. The Democratic Platform drafting process will apparently follow on their 110-page report – although the Platform, itself, won’t necessarily be drafted by the Task Forces. It still looks like the Overton Window has moved leftward since 2016. Clearly a step in the right direction. Enough to force Trump to make outlandish references to “socialism.” This is good. The more he says, the weaker he becomes.

But the campaign between now and November 3 is only the beginning. The real test is what happens after November 3, and after January 20. Expect to hear nothing more about “Build Back Better” after the election.

The Senate is critical. And it presents a higher bar for that potential historic landslide. Mitch McConnell can no longer be Majority Leader. Full Stop. Nothing good can happen if the Republican Party remains in control of one house in Congress. But it may just be possible to push through “compromises” if Democrats gain the majority and control the White House. Even with the filibuster remaining intact.

What are these things that need to be done in the next four years? They include:


  1.       A radical response to the climate crisis – it will be primarily economic, the Green New Deal is the model – and it needs top priority in my opinion, considering the enormous scope, and the urgency of the timeline.
  2.           Full commitment to scientific research in public health and epidemiology, as well as clean energy matters – science is society’s tool, not its enemy! The pandemic will not be defeated without it.
  3.           Make police the servants of their communities, not an occupying army – there is now good momentum for this project, we need to make sure it does not abate.
  4.           Reversal of tax policy from the Republican dominance of last forty years – taxes need to be PROGRESSIVE once again, not regressive – and they must openly seek redistribution of wealth, not just income and inheritance – this is the traditional turf of the Left, valid now more than ever.
  5.            Most important targets for redistribution’s benefits are health care and education – we need to fully accept that health care is a right for everyone, cost no object – and we must accept that future generations will only thrive if the highest level of education, limited only by abilities and desire, is financially attainable for them – end the starving of public education, end the enslaving of tomorrow’s workers to a lifetime of debt!


This is my five-point manifesto. There may be others. But the political machinery needed to bring it to fruition needs to start with November 3 and continue through local elections held over the next four years – the next eight years. As clear as it has become that the Republican Party is unalterably opposed to these points, it is not at all clear that the Democratic Party is supportive of this manifesto. If there is reluctance among Democratic officeholders to embrace these points, they should be subject to primary challenges. The objective is nothing short of “regime change.”

Change is coming. It is most visible in the younger generation of activists and office seekers – they will ultimately prevail. But it needs to start at the local, grass roots, level. So far, I’m encouraged by the apparent openness of the Biden campaign. The next four years will likely present opportunities to move on some of my five points, but the legislative strategy will have to be subtle and adroit. The White House may listen, but that’s not a given. And Congress may be the biggest stumbling block – even in Democratic hands.

Prepare for a long struggle! It will extend beyond the next four years for sure.

Thursday, March 1, 2018


  It’s Tax Time Again!

Random Grumbles and Philosophy

William Sundwick

Do you believe that all taxes are theft? Or, do you simply fear you may not be able to correctly determine how much you owe the IRS, because your income taxes have become so complex? Maybe you object to certain elements of the tax code, to bloated defense budgets, or too much entitlement?

Whatever the excuse, many people seem to enjoy grumbling about their taxes. They may feel, in their heart, that all taxation is theft – that they deserve to keep their hard-earned money for themselves. But, when pressed, unless well-lubricated, few admit to those feelings. They know on some level that there is a social contract requiring shared responsibility for maintenance of civilized society.

In the United States, there is a growing divide between those who consider themselves wealthy and those who do not. In fact, growing inequality is an issue worldwide, not just in our country. This can be confirmed with economic statistics. It is not just a matter of self-perception. But, self-perception may be the dominant factor in how much we grumble about paying taxes.

People generally resent paying taxes to support those they consider better off than them, or as Arlie Hochschild writes, “cutting ahead of them in line.” Taxation must be sold as something which benefits ALL taxpayers. Progressive tax schedules are supposed to address the issue. But, the question of where the revenue gets spent is unavoidable. Tax “loopholes” are often understood as primarily benefiting those wealthier than us.  But, how many of us really know where we fit in the modern American wealth distribution pie?

Much of the inequality discussion these days tends to divide the country into two groups – the 99% and the 1% (a meme from the Occupy Wall Street movement of 2011 that seems to have stuck). Of course, everybody we know is likely to be in the 99%. If, instead of that extreme division, we talk about the top 10% or 20%, we begin to see the “middle class.”

But, since even a 20-80 division places the vast majority of Americans at something less than upper middle class affluence, good socialists still have much to complain about. I’m doing my 2017 taxes now, and don’t have much hard information about what my 2018 taxes will look like – post “tax reform.” Initial analysis, however, suggests that most of us in the top 20% will get hit (even if not that top 1%). Should we be bitter?

I say no. While some provisions of the act seem to reward economic rent-seeking (like corporate tax cuts going for stock buy backs), and some are motivated by partisan politics (like state and local taxes no longer being deductible), the basic structure of the tax code is still progressive. The wealthy pay more. But, if you think you are footing the bill for those who are not wealthy to get a “free ride,” you’d be wrong. People who know they are rich usually understand wealth distribution. People who don’t realize they are not rich often object most to taxes, even though they pay little as is. They are driven more by social animus than economic hardship.

This leads us to the wonderful “democracy” we live in, and its small clique of elected officials. Congress and state legislatures are forever trying to appease their supporters – especially their financial supporters. They continuously introduce incentives for certain business activity to benefit their specific “constituents,” via the tax code. There are also the organized pressure groups (they are “constituents” as well) who may demand changes in the tax code to punish certain behavior – these take the form of “sin taxes,” usually regressive sales or excise taxes. Should we resent this feature of democratic government?


Again, I say no. Democracy has a price tag. If there is to be any forward movement in the body politic, somebody must pay for it. The political sphere is, indeed, composed of constituent groups. But, there are alternate ways of organizing power, besides money. Organizations that seek to leverage power can set themselves up as charitable entities, allowing financial supporters to claim a tax deduction – for example, the ACLU Foundation, or Southern Poverty Law Center.

Does all this push and pull in the tax code contribute to making tax time just too darn hard to figure out? Thanks to the wonders of TurboTax, I can say no to this complaint, as well. Intuit keeps refining their product every year. For 2017, it looks to me like even my more complicated tax year is easily handled by the software’s interview format. It feels like a conversation with a friend, or mentor. I can’t believe that years ago I paid a tax accountant to do my taxes! I think many a tax preparer must have been put out of work by the Internet, especially by Intuit, with TurboTax and Quicken.

We’ll see what 2018 brings. I’m resigned to not being able to deduct advance payments for property tax assessment – I made a good try, immediately after the tax bill was signed on Dec. 22. But, so long as my mortgage lender gives me credit for having paid a portion of my 2018 taxes, I guess I won’t complain too much. After all, I have chosen to live in one of those high tax blue states.

Are taxes really that painful, then? The answer seems to lie deep in your orientation to society, and what role you believe governments should play in it. And, perhaps there is a secondary factor for you – have you kept all your tax records for the previous year, in a well-organized fashion? Even TurboTax can’t divine figures from documents that don’t exist.

Thanks to some big capital gains, I need to pay estimated taxes for next year – but, even that process is facilitated by TurboTax. (This is exciting, I’ve never had this situation in the modern Internet era!)

It always feels good when I file my return – another milestone measuring what I’ve accomplished in the past year. It ought to feel even better when I owe money to the IRS at year’s end, rather than getting a refund. But, perhaps that’s a bridge too far.