Ownership of household wealth in the U.S. in 2007
The taxes we pay lay the foundation for a sound economy and for wealth creation. Tax revenue funds roads and railways, well-educated workers, courts, clean food and water, scientific research, and much more. We all benefit from these vital public systems and structures, which one person can not create alone.
A progressive tax system means that people and corporations who have a lot more income pay a lot higher tax rate than the 99% of people who have less income. Right now our federal tax system is only slightly progressive. The tax system became much less progressive after President Reagan changed it. The opposite—a regressive tax system—means that people who have less income pay a higher tax rate; this is how the tax system works in most states. Herman Cain’s 9-9-9 tax proposal is seriously regressive.
- A truly progressive tax system would mean that we, the 99%, have enough money to fund the priorities we support: educating our youth, paying for health care, allowing seniors to retire with dignity.
- A truly progressive tax system would mean that the typical person’s tax rate is a lot lower than a very wealthy person’s tax rate.
- A truly progressive tax system would mean that investing in the stock market is not taxed less than working at a job.
- A truly progressive tax system would slow the increase in the share of US income after taxes that goes to the 1 percent.
- A truly progressive tax system would lessen the racial wealth divide.
- A truly progressive tax system would mean that people with multi-millionaire parents could not inherit more tax-free than a typical worker earns and pays taxes on in a lifetime.
- A truly progressive tax system would mean that corporations pay a bigger share of taxes. Giant corporations like Bank of America, Verizon, GE, and Exxon would no longer pay zero or shamefully low federal income taxes.
- A truly progressive tax system would mean our country no longer goes into debt that is held by the same 1% of wealthy people who crashed the economy. It would mean the 99% are not paying increasing interest on the national debt.
How can you work for a truly progressive tax system? Find out here.