Republican policy favours those living off inherited wealth
Today’s GOP values the interests of the rich over those of ordinary families
Some of these cuts were reversed under President Barack Obama, but the point is the great tax-cut push of the Bush years was mainly about reducing taxes on unearned income.
And when Republicans retook one house of Congress, they promptly came up with a plan – Paul Ryan’s “road map” – calling for the elimination of taxes on interest, dividends, capital gains and estates. Under this plan, someone living solely off inherited wealth would have owed no federal taxes at all.
This tilt of policy toward the interests of wealth has been mirrored by a tilt in rhetoric; Republicans often seem so intent on exalting “job creators” they forget to mention American workers.
In 2012, Republican Eric Cantor, the House majority leader, famously commemorated Labour Day with a Twitter post honouring business owners. More recently, Cantor reportedly reminded colleagues at a GOP retreat that most Americans work for other people, which is at least one reason attempts to make a big issue out of Obama’s supposed denigration of businesspeople fell flat. (Another reason was that Obama did no such thing.)
In fact, not only don’t most Americans own businesses, but business income, and income from capital in general, is increasingly concentrated in the hands of a few people. In 1979, the top 1 per cent of households accounted for 17 per cent of business income; by 2007 the same group was getting 43 per cent of business income, and 75 per cent of capital gains. Yet this small elite gets all of the GOP’s love, and most of its policy attention.
Why is this happening? Well, bear in mind that both Koch brothers, who are major donors to the Republicans, are numbered among the 10 wealthiest Americans, and so are four Wal-Mart heirs. Great wealth buys great political influence – and not just through campaign contributions. Many conservatives live inside an intellectual bubble of think tanks and captive media that is ultimately financed by a handful of megadonors. Not surprisingly, those inside the bubble tend to assume, instinctively, that what is good for oligarchs is good for America.
As I’ve already suggested, the results can sometimes seem comical. The important point to remember, however, is the people inside the bubble have a lot of power, which they wield on behalf of their patrons. And the drift toward oligarchy continues. – (Copyright the New York Times 2014)