By Robert Sobel via addictinginfo.org
It looks like President Obama is getting tired of Republicans spitting on America. After the recent debt ceiling deal, a super committee of 12 Republicans and Democrats was put together to try to cut $1.5 trillion dollars over the next decade from the national debt, President Obama is looking to double that.
Just over a week after he unveiled his detailed American Jobs Act, President Obama introduced his deficit reduction plan. President Obama will introduce the “Buffett Rule”, named after billionaire Warren Buffettz, on people and corporations by raising taxes on those making over a million dollars a year while letting the destructive “Bush Tax Cuts” expire on those making over $250,000 a year. Loopholes for big oil and gas companies will also be eliminated. In addition to the much-needed revenue increase, there will be over $500 billion in cuts to mandatory benefit programs including Medicare, however Social Security will be off the table. Over $1 trillion dollars will also be saved from the withdrawal of troops from Iraq and Afghanistan. President Obama has put his foot down on the Republicans who claim that the President is engaging in “Class Warfare” by stating that he will veto any bill that comes to his desk that includes cuts to entitlement programs without any tax revenue.
The wealthiest members of society have gotten away with murder for not only the last decade, but for over thirty years. During the 8 years of his presidency, Ronald Reagan lowered the top tax rate from 70% to 28%, lowered the capital gains rate for the wealthy, all while raising taxes that hurt the middle class eleven times. During this time, the country was put on a track of destruction. The gap between the rich and the poor has grown since the destructive Reagan years and under George Bushz the economy, finally fell because of it. Through the 1980′s, major corporations posted record profits, executive pay increased significantly, all at the same time tens of thousands of workers were let go from their jobs. As Republicans continue to break the backs of unions and the middle class, corporations find it easier to let go of workers with little push back.
In industries where there is little unionization, such as retail and food service, the CEO’s make over 350 times the salary of their average worker. In food service and retail there are just over 1% of employees who are in a union. The average pay of someone working in the food service industry is just under $20,000 a year, where the CEO’s of the 10 top companies in the industry (EX: McDonald’s, Taco Bell etc) make nearly $7 million a year or more. In others, such as the auto industry, over 20% of employees are in a union and the rate of pay for a CEO to worker is just over 173 to 1. However, with the free trade agreements letting corporations send jobs to third world countries for a cheap rate of pay, they typically let go of the American worker to pocket more money.
The gap between the poor and the rich is a wide one. For the nearly three years that he as been in office, President Obama has been “Mr. Nice Guy” with the Republicans and has let them dictate where the country is going. The Republican plan is simple. Force President Obama into a corner, run the economy and the country into the ground and then point the finger at the President. It looks like the President has finally woken up and won’t take it anymore. Over 70% of Americans agree with raising taxes on those making over $250,000 a year. Republicans can continue to fight for tax breaks for rich corporations and scream class warfare all they want, but in the end if President Obama takes his message of the gap between the rich and the rest of Americans to the people, it could very well be a winning argument.