Here is what Elizabeth Warren of Massachusetts said at the Democratic convention:
“People feel like the system is rigged against them. And here’s the painful part: they’re right,” said Ms. Warren. “The system is rigged. Look around. Oil companies guzzle down billions in subsidies. Billionaires pay lower tax rates than their secretaries. Wall Street CEOs…still strut around Congress, no shame, demanding favors.”
“I talk to nurses and programmers, salespeople and firefighters—people who bust their tails every day. Not one of them—not one—stashes their money in the Cayman Islands to avoid paying their fair share of taxes.”
Sound like she is ringing the class warfare bell in her quest to be elected a senator, you’re right.
What she fails to tell you is that most tax breaks, credits, rebates and such go to the middle class and poor. The deduction for mortgage interest and property taxes, the tax-free status for employer health insurance all benefit the middle class far more than the wealthy. These two items represent the largest revenue loss for the federal government. The AMT is not adding additional taxes to those making $50,000 a year. The middle class will not pay the new unearned income taxes within Obamacare. The middle class will have its health insurance heavily subsidized in the new health insurance exchanges.
It’s not only big business that lobbies. Unions and lawyers are two of the largest contributors to the democratic party. Unions are heavy lobbyists in Washington demanding favors and while one might assume their goals worthy of working people, in many cases they add to the burden of consumers and taxpayers, especially when it comes to public employee unions.
The fact certain industries may be subsidized is the result of policy decisions by Congress, it has nothing to do with rigging the system. Right now government is subsidizing wind and solar power as part of energy policy. The taxes paid or not paid by the wealthy do not rig anything against anyone. Nurses, firefighters, etc. don’t need tax shelters because they pay low or no income taxes.
The Elizabeth Warrens of the world do Americans a great disservice by trying to pit one segment of society against another. Where would the United States be without the Wall Street firms, and the major corporations that generate jobs, dividends, earnings and growth in tens of millions of individual portfolios, 401(k) plans and pension funds?
If there is anything rigged against the middle class it is policies that inhibit growth, that promote false realities as in sub prime mortgages and “affordable” health care, and that create dependency and a false sense of unfairness.
- Elizabeth Warren: The system is rigged (cbsnews.com)