Monday, September 5, 2011

Labor Day- needed in Wisconsin more than ever

Want even more evidence of how low taxes on the rich and union busting = an increasing unequal system? I checked out the corporate profits from 3Q 1996- 2Q 1997 (good times with big growth), 3Q 2000- 2Q 2001 (leading into recession and shrinking profits), and 3Q 2010- 2Q 2011 for today. As you'll see, despite the fact that we're in a similar GDP situation to early 2001 with a stalling expansion, the amount of profits compared to the overall economy has boomed since the Bush tax cuts.

corporate profits as % of U.S. GDP
1997 10.41%
2001 7.77%
2011 12.64%

So the share of corporate profits is 20% higher now than in 1997. And that hasn't gone over into total compensation to workers with the same stat, and has dropped in the same time period.

employee compensation as % of U.S. GDP
1997 56.06%
2001 57.64%
2011 54.85%

Now check out to how that translates in Wisconsin for the same time period, and how much these entities are taxed here. For this case, we'll look at how income taxes compare to corporate taxes as a share of Wisconsin revenues for the following fiscal years, which fall in the same time periods (3Q-2Q). (Good historical stuff from the LFB here on the subject)

1997 51.69% income, 7.30% corporate
2001 51.24% income, 5.34% corporate
2011 51.90% income, 6.61% corporate

And lastly, let's combine these two stats from above, and create an index to see if we're proportionally taxing corporations and individuals at the same amounts that they make. (% of Wisc. revenues/ % of overall income vs. GDP * 100) If there is equal taxation, this index should remain constant, as corporations will pay more taxes as they make higher profits, and it'll even out.

1997- 92.22 income, 70.12 corporate
2001- 88.90 income, 68.73 corporate
2011- 94.62 income, 52.29 corporate

Yeah, not so equal. The share real workers pay has gone up, while corporations' index is DOWN BY MORE THAN A QUARTER. And we're not even talking about the many property tax exemptions and TIF districts corporations pull compared to everyday homeowners.

Now do you see why I think we need to get up, and take the fight back to those who have STOLEN so much from us? Let's make the unproductive fat cats feel the fist over the next 14 months, frequently and fiercely. And make anyone pay who supports the oligarchs who have robbed this country of the middle class that made this country the greatest on earth.

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