Have you noticed lately how the political establishment and economic elite throw the middle class crumbs? Whether it’s the national or state political parties’ platforms, the policies promoted usually slight the middle class. According to three past studies’ definitions, “middle class” includes income ranges from $32,000 to $122,000.
The latest federal tax reduction proposal gives most of the tax benefits to the very, very wealthy, not the vast majority of people. They throw crumbs our way. So, how does the Trump administration expect to have a revived economy when the income of most average Americans has not grown since the Great Recession. In fact, the disparity in income distribution has increased dramatically over the past few decades.
In the recent New Jersey gubernatorial race, Kim Guadagno said that the average family would save $800 annually with her circuit-breaker property tax reduction plan. The Governor-elect said he would increase taxes for the wealthiest top bracket, hedge funds, and do away with corporate subsidies. Murphy indicated that the added proceeds from these tax increases would be spent for diverse spending items including infrastructure projects; but, wouldn’t that inevitably be channeled to big contractors and corporate businesses? Why not shift those additional revenues from tax increases on the top 1 percent and the hedge funds, for an income tax cut to the middle class?
Giving back income to the middle class would do more for the economy than investing solely in infrastructure projects or other spending projects. Tax cuts would give middle class families the ability to spend more and save more. It belongs in their pockets to begin with since their income is the fruits of their labor.
The only way property tax hikes across New Jersey can be halted is to initiate “binding” budget referendums on school budgets and local government budgets. Would the Legislature or the incoming administration be willing to give the people the ultimate power of vetoing increases in municipal and school budget spending, with no strings attached? That would be a first, great start to controlling property taxes and the bloated bureaucracy of the institutional educational complex. With a binding budget referendum, the people would ultimately control spending and taxation, increasing accountability to the people.
The middle class is the segment that produces a strong economy. Without income growth and real strong tax cuts for middle America at every level of government, the American economy will stagnate further, despite the false messaging of those who hold power.
Deborah K. Smarth, Manalapan