Tuesday, October 10, 2017

The U.S. is becoming an extraction economy

The rest of the United States is headed in the same economic direction as Puerto Rico, says David Akadjian, of Daily Kos--and that's very bad news, indeed.

The proposed tax cuts are "primarily targeted at America’s wealthiest:
  • The top rate for America’s wealthiest will drop from 39.6 percent to 35 percent
  • Elimination of the estate tax (which only affects estates over $5.49 million, $11 million for married couples)
  • A drop for “pass-through entities” from 39.6 percent  to 25 percent  (this is primarily a gift to small, very wealth firms like hedge funds and law firms) 
  • Getting rid of the alternative minimum tax (AMT) which primarily affect people making more than $500,000 per year
  • A super low rate on repatriating money overseas (This helps the Microsofts and Apples of the world who tend to buy back stock when this money comes home—again, boosting the stock market) 
  • Leaving the carried interest loophole in place (Again, largely benefits billionaire hedge fund managers) 
We’re told that we have to do all of this to “free” markets.
What we’re really doing is shifting more wealth to the narrow Wall Street interests that control our country. The more we do this, the more we look like an extraction economy.
If we wanted broad prosperity, instead of extracting, we’d be investing in our country as we grew and as we do well. We’d be paying people more. We’d be investing in education and infrastructure and research.
The reason we’re not is because our country has fallen under the control of a narrow interest. If we want an inclusion economy that works for the people of our country, we’re going to have to remember the importance of politics and democracy.
If we really want a stronger economy, we need to restore our democratic institutions."


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