As we enter our product consumption holiday season, an editorial from the New York Times about America’s poor renewed the debate about these people “getting a free ride” according to the Sneetches with stars upon thars, a.k.a. the 1% and those electeds who stump for the 1% (typically one in the same). I find it very hard to believe that anyone below, at, or near the poverty level is privileged to much of anything that is free, so I’ve been thinking a lot about this claim that has come from the likes of Rick Perry, Michele Bachmann, JonHunstman, and other pundits.
Make no mistake, I am not among those living at or near poverty, but I am a lot closer to that level in terms of income than the 1% to make damn sure. I’m also no economic expert (I took two courses in college) so I profess no advanced standing among that circle either. But I am a citizen doing a little extra in order to interact and help among my community.
I find it very contradictory that the group of people who are receiving the greatest tax advantage in our country is accusing anyone of getting a free ride. I will grant that most surveys show that the vast majority of the wealthy did not inherit their fortunes (although a close examination of some of these surveys show them to be flawed and open to interpretation as to how much of one’s fortune was inherited versus expanded upon. For example, if I inherited $1million but used that $1 million to build into a $20 million fortune, is my wealth inherited or earned?). But how many of today’s wealthy were born into middle class or upper-middle class families between 1940 and 1975 (when the middle class ruled) that could still afford a top-level education? How many were born into families of poverty and still rose above?
There is no arguing that the wealth gap is at an all time high, and those with the wealth claim that they are the ones creating jobs and purchasing goods and services so they should have less of a tax burden because of the economy-spurring responsibilities they bear. Why is it then that as the wealthy should continue to get more while our economy continues to decline, consumption continues to drag and unemployment continues to rise? President Obama has nothing to do with this; it is simply a matter of the wealthy claiming to have a responsibility and then either opting not to enact that responsibility or that responsibility simply is a fallacy.
But back to the poor being freeloaders. Back in July, Republican presidential hopeful Michele Bachmann claimed that 47% of American pay no taxes. This was in response to aquestion in which the questioner framed their inquiry around a quote from the Bible (Matthew 22:21) that states, “Render unto Caesar the things which are Caesar's, and unto God the things that are God's," a passage about paying taxes in Judea. I love it when people use Bible text to argue against people who use theBible to suit their own needs. Anyways, the question targeted how large private corporations are getting away with paying little to no taxes and Bachman turned it around to be an attack on the poor.
Of course the notion that anyone, even the poor, get off free is totally wrong. If they are getting paid above board, they have Federal Income Contributions Act taxes withheld (by the way, this is the one tax Republicans want to INCREASE). Plus, anything they purchase, from gasoline to groceries to clothing, is subject to taxes. But even still, the notion that 47% are not contributing appears wrong. In fact, according to the Brookings Institution, the poorest fifth of US citizens gave 16% of their annual income back through local, state, and federal taxes in 2010. Not seeing much of a free ride here.
So, how does one rise out of the poverty class? I mean, we all aspire in some small way to join the 1%, or at least increase our wealth to where the current 1% resides (somewhere north of $380,000 per year). My family currently is part of the top 25%, which seems pretty dang elite considering I work on a half-time basis and my wife is an RN on hourly wage. But how to the poor move up? It’s not simply by hard work and good intentions because we’re all fighting to make ours and there are only so many winning lottery tickets, pro sports jobs and elite entertainer spots to go around.
The obvious starting point is education, typically the #1 target of budget cuts by the right, which makes sense. What better way to protect their wealth and standing than by diluting the field of those who can threaten to take away from them. Schools in poor neighborhoods are typically the worst. And I say this living in the state that has consistently been among the bottom five states in education over the past ten years. Sure, there are more school options with open enrollment, but having kids go to schools outside of their immediate neighborhoods requires transportation, often a luxury not afforded to the poor. So, the poor are not receiving any advantages in terms of education, meaning no free ride there.
How about small business loans? Again, this well is being sucked dry as banks, the bastion of the 1%, have pared back small business lending by $47 billion (what’s with the number 47?) since the recession took hold in 2007. Besides, how many banks will offer significant loans to those with little to no education and even less collateral to try to start the next great business? And most great business is based around tech where the superstars were dropouts from Harvard and Stanford, not South Mountain Community College. Again, no free ride to be found.
So, I am at a loss, but as I said, I’m no expert. However, I find it very hard for this country to truly prosper and be strong with such an economic divide. I’m not saying we all should be rich. I mean, yes, I do believe that the rich should be paying more in taxes (or at least pay what they should and not hide behind dated tax codes, corporate loopholes or gifting to fellow family), but I don’t think that we should all be millionaires. And for the record, I’m quite happy and comfortable living at our current means and don’t expect more because I’m due something. Wealth and fortune should be earned and those who have earned it are deserving of that wealth, but it does not entitle them to extra privileges that others are not afforded. Their wealth is the privilege, not a tax advantage or the ability to sling accusations that others aren’t paying their fair share.
I find it very wrong that the mega rich are slinging claims of anyone getting away with living large or living free in this country while they themselves are asking demanding more for less. And the wealthy aren't getting any free ride either, but I sure see those folks getting complementary this and "don't worry about it" that a lot more than anyone else these days.
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| World of Class Warfare - The Poor's Free Ride Is Over | ||||
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