Thom Hartmann: What Role do Taxes Play in a Society?

[thomhartmann]

Mike Elk, In These Times, Vince Coglianese, Daily Caller & Sam Sacks, progressive commentator join Thom Hartmann. President Obama called on Congress to extend the current tax rates for all working Americans earning below $250,000 a year. In this call for action - the President also argued for letting the Bush tax cuts expire for those making more than $250,000 - effectively increasing taxes on the wealthy to where they were under President Clinton. Currently - the top income tax rate in America - the rate that the wealthies among us pays - is 35%. Looking all the way back to 1945 when the top rate was 94% - other than a period in the 1980's when President Reagan cut the top rate down to 28% - today's wealthiest Americans are enjoying historically low tax rates. And looking at the economics of it all - our current top income tax rate hasn't really paid off. At a top income tax rate of 35% - GDP growth has been the slowest it's ever been compared to other top incomes tax rates. So too has job creation. Our 35% top income tax rate has produced the least amount of jobs of any other income tax rate. Now this is certainly going ot be one of the top political debates heading into November. But what will be lost in between accusations of class warfare - and wealthy freeloaders - is exactly what the purpose of taxes are to begin with. As in what role do taxes play in a society - or nation - like ours? And just how much should the very wealthy contribute in taxes, while still keeping our nation competitive in the global economy. Not only that - is it even possible to raise taxes anymore in America?

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