The
war on the poor seems to be going very well.
Politicians and corporate
leaders across the country shamelessly ignore Article
1, Section 8 of the U.S. Constitution, which calls
for raising revenues for the defense of the nation
and its “general welfare.”
In
the minds of the rich, the poor, even the working
poor, seem to be at fault for most of our economic
troubles, from the national debt, to the cost of government
programs, the lack of adequate housing, to the obesity
epidemic, to the staggering cost of the “war on drugs.’’
They are even blamed by some for various ills like
HIV and AIDS and the drug abuse “epidemic.”
The
incarceration rate of black and other minority young
men that outstrips most other countries, just in general
terms, has everything to do with poverty. The attitude
is that, “if you’re poor, you’re going to jail.”
That’s especially true if you’re poor and African-American
or Latino.
Anyone
who had occasion to watch or hear the Republican candidates
in the presidential primary campaign spout off on
what is wrong with the American economy knows that
the GOP view is that most of the problem stems from
so many who don’t pay any federal taxes. And, at
the same time, they were militant against any source
of new money (taxes) from the rich and corporations.
They seemed prepared to protect them and their money
and their accumulated wealth with their very lives.
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As
for protecting the most vulnerable, the poor and the
working poor, they were not so inclined to protect
them and their families from anything (including
natural or economic disasters) much less give them
a helping hand. If anything, they seemed to resolve
to punish them for being vulnerable and quite powerless
to defend themselves against the attacks of the Right
Wing, no matter the party. For example, more IRS
audits have been done on workers making between $7,000
and $25,000, than those who reported incomes of more
than $100,000, as much as eight times that of the
affluent or rich.
Why
would this be true? Why would the rich and powerful
single out people who can’t defend themselves? The
answer: Because they can’t defend themselves!
They
don’t have batteries of lawyers and accountants, advertising
executives and copy writers, and, most of all, they
don’t have scores or hundreds of politicians whose
very existence in politics depends on millions, even
billions, of dollars that keep them in office. There
are people who provide all of that and it isn’t the
poor.
Why would the rich and powerful
single out people who can’t defend themselves? The
answer: Because they can’t defend themselves!
There
were GOP candidates who, during the primary season,
declared that only about 53 percent pay federal income
taxes, indicating that those pesky poor people and
low-wage workers don’t pay their fair share. This,
of course, ignores all of the sales taxes, excise
taxes, fees, and licensing costs, along with Social
Security and Medicare (both of which are federal taxes).
They pay much more of their income in taxes, fees,
and other such costs than the average middle-income
worker and they pay much more as a percentage of their
income than the rich. That’s why sales taxes and
similar taxes are so popular with right-wing politicians:
They eat at your substance quietly and in small doses.
The
Social Security (payroll) tax is 6.2 percent. The
Obama Administration has temporarily lowered that
amount to 4.2 percent, as part of the stimulus package.
Workers, no matter how much they are paid, pay this
amount, as do those who are paid hundreds of thousands
of dollars a year. The difference is that there is
no Social Security tax on incomes of more than $106,800,
so those who are paid millions a year only pay the
6.2 percent (or, 4.2 percent) on a small fraction
of their income. In addition, workers pay 1.45 percent
for their Medicare tax. You can see how much more
heavily these taxes fall on those of low income or
modest middle income. The rich may pay only 2 percent
of their income in these taxes.
An
army of Republicans and others on the right have made
it a career goal to keep the poor poor and help the
rich stay rich, or get richer. Long gone are the
days when politicians of every stripe were aware of
the plight of the poor (many of them elderly, disabled,
or disadvantaged in some other way), and they spoke
of this national problem and tried to find solutions
to poverty. Regularly, there was legislation introduced
to try to relieve the burden of poverty, which brought
with it inadequate housing, ignorance, ill health,
and other evils of a deprived existence.
More IRS audits have been
done on workers making between $7,000 and $25,000,
than those who reported incomes of more than $100,000,
as much as eight times that of the affluent or rich.
Michael
Harrington’s book, The
Other America: Poverty in the United States,
was said to have had an effect on President John F.
Kennedy and had much to do with furthering President
Lyndon Johnson’s War on Poverty. There is little
spoken in the modern era of eliminating poverty, certainly
no “war on poverty.” Rather, there seems to have
been formulated a “war on the poor” in recent decades.
And, politicians and corporate leaders across the
country shamelessly ignore Article 1, Section 8 of
the U.S. Constitution, which calls for raising revenues
for the defense of the nation and its “general welfare.”
There has been an ongoing debate about what those
two words mean, but it has been held to mean that
the government will act in the best interests of the
people.
That
is the last thing on the minds of the rich and powerful
in America today. Rather, what is on their minds
is to remove any semblance of support from the poor,
low-wage workers, the elderly, the disabled, and unemployed
middle-income workers (all of those who are vulnerable
to the vagaries of their precious “market” which they
seem to be able to manipulate according to their own
whims).
To
do this, they have been busy cutting budgets and slashing
programs that benefit these most vulnerable, at the
federal and state levels of government. Of course,
local governments, tied as they are to dispersal of
money from the national budget, are left standing
in their streets and wringing their hands, wondering
what to do.
At
the same time, there is plenty that corporations are
doing to push along this destructive trend. They
not only lobby for these program cuts through their
politicians, but they have systems of their own to
exploit the poor. In his 2003 book, Perfectly
Legal: The Covert Campaign to Rig Our Tax System to
Benefit the Super Rich--and Cheat Everybody Else
, David Cay Johnston, has a chapter in his book
entitled, “Preying on the Working Poor,” in which
he describes the IRS auditing 397,000 of the millions
of working poor, who had applied for the earned income
tax credit (EITC), a small benefit for those who do
the tough work of the nation.
That
number was eight times the number of IRS audits done
on taxpayers who made $100,000 or more. Johnston
noted that, when Newt Gingrich became Speaker of the
House, President Clinton, fearing that the Republican
majority would gut the EITC program, made a deal:
He would provide the IRS with $100 million additional
funds to audit those who participated in the program.
The EITC is a program that provides a big income boost
(from a few hundred dollars for some, to $4,140 maximum
for others), and represents a relatively minor expense
item in the federal budget that brings some relief
to working families. Even so, there were vociferous
detractors. Then-Senator Don Nickles, an Oklahoma
Republican, denounced the program as welfare and “an
income redistribution program.” He and others would
have ended the program, since it is the kind of program
that the Right Wing wants to end now, at all levels
of government. Since he retired from the Senate in
2004, his firm, the Nickles Group, has been a consultant
to corporations and trade groups, exploiting his connections
to lawmakers and government agencies.
Johnston
also explains the kind of industry that is not unique,
which uses the poor as a cash cow: The tax preparation
and quick-loan industry, which can charge interests
that amount to (in one of the more outrageous examples
Johnston cites) a 2000 percent annual rate, although
a rate of 222 percent is more typical. This is criminal,
of course, but it is perfectly legal and, since it
is the poor who are being exploited, politicians have
saved their outrage for those who would ask the rich
to pay more in taxes to help balance the nation’s
books.
Although
Johnston’s book is not the first to point out the
exploitation of the poor, it is one of the most recent
that so explicitly does so. Since it was published
in the last decade, it doesn’t seem to have made a
difference in the attitude of the powerful, as Harrington’s
book did. There is no rush to find solutions to the
misery and suffering of poverty (note the lack of
interest in providing universal health care), on the
part of any of the 1 percent. There is very little
discussion on the floor of either house of the Congress
and that attitude trickles down to the state legislatures
and their members and functionaries. When there
is a discussion about poverty and its ills,
usually it is before an empty house and it’s just
to get it into the record.
If you’re poor, you’re going
to jail. That’s especially true if you’re poor and
African-American or Latino.
What
has happened is that there is no agitation from the
people for the nation to rise up against poverty and
the specter that it raises for this generation of
youngsters, who are wandering the cities, wondering
when they might find a job. Many of their parents
are wondering the same thing. Unemployment is unyielding
in America, especially since the manufacturing base
has been sent elsewhere and we have become a service
economy. We have wars that never end and Corporate
America has a pipeline into the national coffers that
politicians support, literally pouring the economic
substance of the country from the people to the rich.
The
powerful rich complain about the poor, the working
poor, and the young. They complain that they are
not willing to work hard, while they themselves sit
in air-conditioned offices manipulating the system
to maintain the status quo. The working poor do more
work in a week than the rich do in a year. If hard
work automatically brings a worker the “American Dream,”
there should be tens of millions more of the working
poor sharing that dream, right now. This picture
is turned upside down.
It
has been a long time since the Poor People’s Campaign,
organized by Martin Luther King Jr. And the Southern
Christian Leadership Conference, back in the late
1960s, in an effort to stop the Vietnam war and end
racism and poverty. Goals that they sought then are
the same as now: Stop the wars, end racism, end poverty.
A few more can be added for this time in our history:
Provide free public education, decent housing, and
give the nation true universal healthcare for all.
It’s
time for renewed and expanded Poor Peoples’ Campaign!
BlackCommentator.com
Columnist,
John
Funiciello, is a
labor organizer and former union organizer. His union
work started when he became a local president of The
Newspaper Guild in the early 1970s. He was a reporter
for 14 years for newspapers in
New York State.
In addition to labor work, he is organizing family
farmers as they struggle to stay on the land under
enormous pressure from factory food producers and
land developers. Click here
to contact
Mr. Funiciello. |