Fellow citizens and working-class taxpayers, we have watched several financial crises unfold that the government has helped solve, all being paid for by us. As we watched the powers in Washington force through a budget that dramatically slashes public services yet increases the national debt, we wonder what they think the purpose of government actually is?
The fundamental task of the federal government, as outlined in the U.S. Constitution, is “to form a more perfect Union, establish justice, ensure domestic tranquillity, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity.” In modern terms, it means to enable and protect all citizens as well as to provide the large, beneficial services that individuals and states cannot provide. Expensive propositions. These public services and guarantees have been created by Congress over the past 100 years.
According to those not in favor of our government funding public services, the task of the government is to enable free enterprise, then get out of the way so the “market” can solve all our problems.
The truth is that an unfettered market has never solved our problems. A careful analysis of government spending would be wise, but the conservative refrain is that the nation cannot sustain such expensive programs, partly because we have such a high national debt. While there may be a certain level of individual fraud or dishonesty associated with these programs, it pales in comparison to the well documented fraud and bilking of the government and citizens by corporations and the ultra-wealthy.
Historically speaking, we have generated sufficient revenue to fund all our public services and many other programs that benefit society.
According to the Tax Policy Center, from 1941 to 1963, the tax rate for the wealthy ranged between 81% and 96%, which helped fund our effort in World War II, the Marshall Plan to rebuild Europe, the Interstate Highway System, the nuclear weapons program, the space race, research and development of successful vaccine programs, Social Security, Medicare, Medicaid and other high dollar programs. The key to those successes was the taxes collected by the government from the wealthy, those who benefit most from our system of capitalism. During this same period, the national debt was manageable.
Beginning with the “Reagan Revolution” tax cuts for the wealthy – reducing their rate to the mid 30% range – and massive military spending, the debt skyrocketed past three trillion dollars, increasing more than fivefold in his two terms. In subsequent years, the national debt soared as the government bailed out the Savings and Loan crisis of the late 80s, the recession of 1991, the housing crisis of 2008, the COVID-19 crisis of 2020-21. Making the ultra-wealthy pay their fair share would be a basic first step to solve the funding dilemma.
Meanwhile the ultra-wealthy have become even richer, often avoiding paying any taxes at all. For the most part, the working class pays their taxes, while the wealthiest can hire legions to help them avoid paying taxes. The United States has more than enough wealth to support our public services. We simply need to increase the income stream.
It is interesting to note how Massachusetts is an example of how to increase our national income. The state passed a ballot measure in 2022 that levies a 4% surcharge on those making over one million dollars. According to CPA Practice Advisor, 2024 tax returns generated an extra $2.2 billion for the state.
This surcharge was not followed by an exodus of the wealthy leaving the state. In fact, their numbers increased. Imagine what could be done if such a system were adopted nationwide. That being unlikely with this Congress, perhaps all states could better offset pending cuts with a similar program? Our national debt dilemma, largely caused by regressive conservative policies and tax cuts for the wealthy, will require creative solutions, which are in fact evident and possible.
Gene Orr, M.Ed., is a retired educator with 43 years of experience teaching social studies and history in middle school, high school and college in Durango. He lives in Kline.
