Debunking Supply-Side Economics

PORTLAND | April 15, 2011

For the past thirty years with a special emphasis on the last ten, author David Cay Johnston a columnist for tax.com who teaches the tax, property and regulatory law of the ancient world at Syracuse University College of Law and Whitman School of Management, in a report entitled 9 Things The Rich Don’t Want You To Know About Taxes states the following:

1. Before Reaganomics, 90% of Americans saw their incomes grow faster than the top 1%. After the 1980’s, when Reagan took office, almost all income gains have been at the top.

Contrary to popular belief, poor Americans do pay taxes. In a report entitled The Wealthy Need To Pay More In Taxes, it is discussed that 20% have salaries highly in excess of the $49,000 per capita average while 80% much less, and author Johnston corroborates this fact to a degree. According to Mr. Johnston, data from the Tax Foundation show that in 2008, the average income for the bottom half of taxpayers was $15,300.

2. Wealthy Americans do not carry the tax burden.

3. The wage gap widens and the wealthy are paying less taxes.

4. Many of the wealthiest Americans pay no federal tax at all.

5. Only wealthy Americans have gained significant income.

6. Corporations are in a similar position with less taxes

7. Some corporate tax breaks actually destoy jobs.

8. Average incomes fell during the Bush years and Republicans actually like taxes too!

9. Other countries can do it better, like Germany, who has a smarter tax system.

To read the entire article, please visit: 9 Things The Rich Don’t Want You To Know About Taxes

Read all of Debunking Supply Side Economics

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Apollo Group Donates Big To Brown

A recent blog post in California Watch entitled Why for profit colleges gave big to Brown reports that Apollo Group, the Arizona based parent company of the University of Phoenix, gave more to Brown than to any other state office seeker in the country because of the potential profits in California and fear of strict regulation under the new governor.  So now, basically, Brown owes Apollo Group a favor meaning that California is less likely to pass enhanced regulations safeguarding students from the sales tactics used by Apollo Group.

Quoted from the University Echo Online, is the following on an investigation of 15 for-profit universities:

• The United States Government Accountability Office Report said it investigated 15 for-profit universities to evaluate their practices and tuition rates.
• The GAO found that four universities pushed applicants to falsify documents and all 15 lied to or misled recruits.
• The report said violations ranged from financial affairs to improper advisement.
• The GAO reported that one school told an undercover applicant not to report $250,000 in savings to earn more financial aid.
• Another recruiter told an applicant that no one would ask for repayment on a student loan, reported the GAO.
• According to the report, advisors commonly shared exaggerated post-graduation career salaries with students, understated tuition to them and school officials reported false graduation rates to education authorities.
• Senator Tom Harkin, a democrat from Iowa, led the effort to investigate for-profit universities in a hearing committee to discuss his "Debt without a Diploma" report.

With California’s education system ranking in at 49 out of 50, Brown has ensured that not only will California students be educationally disadvantaged, but economically disadvantaged as well.  Gov. Brown is off to an excellent term he hasn’t even begun.

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