A majority of Americans, about 230 million, take home just 15% of the income of the U.S.A. The top 20% take 85% of the income and the ultra-rich take 3/4s of income growth. In other words a growing economy primarily benefits an oligarchy and counter-cyclically degrades the political effectiveness of democracy. As the economy recovers and expands the poor and middle class become politically and economically poorer. The top .01% for-themselves take ten percent of the income in the U.S.A. today. As global economies rise and consume more non-sustainable economic product the cost to U.S. consumers may well rise.
The capital gains rate is just 15%. The ultra rich only pay only about 20% income tax. With Wall Street and bank networking raking in profits everywhere-since the 2009 recovery began the rich have taken in 90% of the wealth. Outsourcing of jobs continues with better investment opportunities abroad for the international class of the ultra-rich. Obama economic planning does little or nothing to address economic reality. The President's Harvard-Wall Street advising crew seems to have him dancing and golfing on strings.
It is the majority with just 15% of national income that will pay proportionally more for Obamacare because of the increasingly regressive tax structure. If illegal aliens were made legal they would just be added to the majority dividing up just 15% of the national income. New citizens in the impoverished majority would require government assistance from that themselves in new schools, policing, training and social welfare payments. There seems to be a financial firewall between the rich and the majority such that federal legislation gets increasingly financed and/or programs cut from within the 15% tax base income portion. Maybe the 15% portion of national income consumed by the majority can be viewed as a distasteful allowance the ultra-rich must concede in order to keep the majority compliant with their program though it would of course be better consumed by the ultra-rich 1400 billionaires of the world and their lackey millionaire juniors.
Democrat politicians may argue that increasing the tax base with new citizens will help pay for the social welfare system, yet the only way to actually increase the tax base is to tax those with the money and that isn't illegal aliens or youth. President Obama twice was the cheerleader against ending Bush II tax cuts. The ultra-rich couldn't have a better lawyer-actor front man to occupy the time of the somnolent masses satisfied with a non-financial political agenda the ultra-rich tolerate.
Those with the money are the 1% global corporatists. As the demographic numbers of the poor and middle class increase their incomes remain the same or stagnate. Government just redistributes middle class and poor income to new members of the middle class or poor.
The demographic theory of increasing the insurance pool to pay health costs with young people required to buy insurance will just take more from the majority with only 15% of national income and redistribute earnings to the ultra-rich. A substantial tax increase on the rich is the only way to move outside the small income cluster of the majority and move into the preponderant, dominating income cluster of the teeny tiny minority with the money/
The majority are sold a bill of political goods concerning the majority's 15% of U.S. income while the vast pile of concentrating wealth income of the 1% and the.01% are regarded as sacred ground in the Church of Adam Smith's Libertarian Deregulated Capitalism. Owning the broadcast media helps control public opinion in favor of the lobbyists working for the rich like the politicians except for Bernie Sanders who unfortunately is a socialist instead of a reform of capitalism through downsizing.
Democracy requires egalitarianism of income distribution because money loosely converts to political power. It can be expressed in terms of Einstein's famous formula of E=MC2. Transformed to explain political economy it reads P=MLA2 (political power equals money times lobbying and advertising squared).
It is necessary to reform capitalism and free enterprise in the United States today to keep it at a pragmatic human scale rather than in inhuman, abstract, Satanic globalism of oligarchs. Plutocracy even if perpetrated by benevolent oligarchs develops the same inhuman characteristics as communism in nullifying the opportunity for individual free political expression and free enterprise although through different means of suppression.
It would be good to create an ecological economic shadow infrastructure in the U.S.A. through federal leadership that would favor local development of ecospherically sustainable jobs. The national ecospheric business infrastructure would be regulated by the state but not owned by the state. Businesses compliant with sustainability and employee number caps (fewer than 5000 workers) would receive tax breaks and be eligible for available contracts from the state. No American should be allowed to own stock in more than three corporations.
While business is global and taxes are avoided by Plutocrats leaving the vast majority of American income under taxed and over-concentrated national debt builds up. The President can talk about education for youth and spending on select obsolete physical infrastructure renewal all he wants as a way to create jobs for the middle class, yet he is appears to be entirely wrong about the prospects for the middle class.
If tax rates on the rich and capital gains tax rates were progressive, if the Bush II era tax cuts had been allowed to expire the U.S. economy might have had a chance to improve. Cutting federal spending and improving existing federal programs if not entirely reforming them to syntigrate more effectively in the economy were good objectives for the first and second Obama administration terms too, and neither was attempted.
National income should be such that the majority of the people take at least 50%. Government policy should set that number as a prime directive. Money equals power. Democracy is about majority power. The majority should take the majority of income to conserve the majority of political power.
Income should be produced through sustainable ecospheric means. Maybe a full-employment economy can provide enough of a natural social welfare to negate the need for excessive government welfare.
The transition to a high-income sustainable ecospheric base for the national majority can serve as an example for other nations. America should be a laboratory of democracy successfully adapting to the challenges put by the existential, and phenomenal physical and social environment.
Freedom of religion, freedom of thought, freedom of speech and free enterprise are necessary, vital elements of a healthy democratic society able to adapt to heterodox challenges of empirical existence. Democracy is about necessary regulation that benefits equally well the majority of the citizens of a nation. The golden mean of deregulation is selected to conserve the real individual interests of the majority within then meta-regulations of democratic governance.
Taxing the economic extreme corrupting democracy by concentrating wealth in the .01% may drive globalists farther offshore, perhaps to the moon, yet it would help restore a democratic health to the U.S.A. and pay off national public debt. A basic plan for ecospheric economic syntigration should be ready to phase in as rich globalists paying low taxes find foreign fruits more to their liking than a democratic social environment. Economic liberty and economic justice for all does not come cheap. An ecological economy of full employment could gradually phases in as plutocracy fades out if people are educated well enough to become pragmatic business activists.
A healthy democracy with limited size corporations and full employment within a sustainable ecosphere that supports individual free thought and free enterprise is a better direction to trod than an anarchic oligarchy of Plutonomy oppressing individual development using a soft networking corporate power to snuff out meaningful democratic dissent.