CalCentrist.com
Home Issues Book Reviews Blog Resources Contact Us
   
Skewed Business Framework

Special interests modified the tax code to favor those with wealth, in the form of what is taxed, tax rates, loopholes (that only the rich can exploit) and subsidies.

The rest of us helped pay for the rich to get their money. They got rich because of government investments in infrastructure, education of workers and a complex regulatory system that favors those with money.

There is complexity to favor special interests (the rich) everywhere. Taxes, selecting stock funds in our 401K, selecting Medicare drug plans, etc. are too complex. The rich can hire advisers to help take advantage - the poor end up paying the most for the lowest quality.

Even though some things are cheaper, such as goods made in China, certain categories have seen huge increases: housing, health care and a college education (Center for American Progress), and, more recently, food and gas. The high cost of college is also a barrier for poor and middle class kids to get the training needed for decent paying service jobs. The way schools are funded results in the worst schools being in the poorest neighborhoods, where parents can't afford to contribute to soften the shortfall of cash.

The poor have no capital, collateral or credit history, and thus are more of a risk. They thus pay more to cash checks, get worse terms on mortgage loans, get worse returns on bank accounts (they don't have the money for the high minimum balance accounts).

Cuts to inheritance taxes help those who made a fortune pass it on, establishing and inherited aristocracy that we paid taxes to make possible.

Back to Unbalanced Economy