Phil for Humanity Phil for Humanity
A Guide for the Survival of Humankind and Helping the World, Society, and Yourself.

Repeal Reagan's Tax Cuts

Former President Ronald Reagan lowered the personal tax bracket for the very top wage earners, such as CEOs and bankers, from about 70% to 28%. This was part of Reagan's "trickle-down economics" belief that if the larger wage earners would keep more of their money instead of paying high taxes to the government, than these high wage earners would create more jobs and stimulate the economy better than the government would with those tax dollars. Unfortunately, "trickle-up economics" occurred and is still occurring with the super-wealthy hoarding more money and becoming even richer.

Reagan had several other economic policies, famously called Reaganomics. Overall, these policies did stimulate the economy and create a new jobs. However, these policies were responsible for increasing the U.S. National Debt from about $700 billion to about $3 trillion. That's over a three times increase to the already huge U.S. National Debt. So, Reagan's policies helped the country's short term economy, however these policies put a greater strain on the country's long term economic health.

Now over twenty years after Reagan left office, the U.S. National Debt is estimated to be almost $13 trillion. That means that each U.S. Citizen share of the National Debt is able $42,000 and increasing. This level of burden on current and future generations of Americans is staggering. It could possibly bring an end to the American superpower status and to the American Dream.... maybe even to the entire United States of America.

How I see it, there are only two possible solutions to reducing the U.S. National Debt. First, increase taxes to pay our debt and balance our budget. Second, reduce government spending so that there is a budget surplus that is channeled to reduce the debt. Or a combination of these two solutions.

So, I would like to propose to first repeal Ronald Reagan's tax cuts to the top American wage earners to directly pay off the U.S. National Debt. This renewing of our old tax brackets would continue until there is no longer a National Debt and the National Budget is balanced.

This change would be incredibly unpopular to those people with the most political power. And they would obviously demand that their taxes be lowered; but since our deficit needs lowering, few politicians would be willing to make this change back for only the benefit to the super wealthy.

The only alternative that the super rich people would have is to lobby the U.S. Congress to reduce the government's expenditures or spending. That way the U.S. National Debt would decrease at a faster rate; and therefore, the super wealthy would minimize the amount of taxes they would have to pay.

The only question is when will the U.S. Congress start paying off the National Debt?

by Phil for Humanity
on 04/10/2010

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