How America's Wealthy Stole the American Dream and Cashed It at an Offshore Bank

[xchrom]

http://www.alternet.org/economy/how-americas-wealthy-stole-american-dream-and-cashed-it-offshore-bank

America is the most unequal country in the developed world. We also pay the lowest taxes among all developed nations. Is there a connection?

Runaway inequality and declining taxes are linked together through a set of economic policies called the "Better Business Climate" model which came to America around 1980. (By then Margaret Thatcher had already put her version to work in England.)

After the turbulent 1970s, which featured oil boycotts, high unemployment and even higher inflation rates, the policy establishment was hungry for a new simple plan that promised renewed prosperity. The Better Business Climate model had two key components: cutting taxes on corporations and the super-rich, and reducing regulations, especially on Wall Street. This potent combination was to encourage the rich to invest, which in turn would lead to more jobs and increasing incomes for all. A massive boom would then ensue to make all boats rise. But as we painfully learned, tax cuts and the unleashing of Wall Street led to luxurious yachts for the few and leaky rowboats for the rest of us.

Mind-altering tax cuts

The massive tax cuts which followed changed the way we perceive government and how we think about taxes. Since everyone hates to pay taxes, a model that claimed tax cuts would actually be good for the economy was enormously seductive.

[Octafish]

1. "Pirate Banking" brought to you by bailed-out Wall Street

Great article, xchrom! I'm so old, I remember when lots of Democrats cared about economic justice. Nowadays, one has to go to FORBES to find anyone interested in taxing offshore wealth.

http://www.forbes.com/forbes/2010/0719/opinions-taxation-tax-havens-banking-on-my-mind.html

[closeupready]

2. Gee. An elected national legislature populated by multi-millionaires fails to tax

the rich adequately in "the wealthiest country ever on Earth", and seeks to cut social security benefits to the disabled, poor, and elderly.

Makes no sense...?