A Healthy, Fair Economy
Economic inequality in America has reached its highest level since the Gilded Age. Our country can't prosper when we're investing in large corporations and the super-rich over everyday Americans.
“The wealth gap is a huge problem. The wealthy have been getting too much wealthier, so middle class incomes have been flat and that's not good for America. And we haven’t done a good job growing our economy; that would’ve fixed a lot of that problem.”
- Jamie Dimon, JP Morgan CEO
The issue
Economic inequality in America, “on the rise for decades, is now highest since 1928.” The RAND corporation reported that “the top-1% of Americans have taken $50 trillion from the bottom-90%” over the past half-century. Employee wages are lower than ever while corporate profits and top-earners’ incomes are higher than ever. The US now ranks 4th out of 34 OECD countries on income inequality. Today, working Americans are being fleeced by our elites and large corporations, and it’s past time that we implement the people-power economic policies that allow all of us to prosper.
Read the detailed policy fact sheet:
How we fix it:
💰 Make large corporations pay their share
Raise the corporate tax rate
Corporations have been paying less in taxes than ever. Research shows there’s no association between lowering corporate taxes and economic growth; the only people who benefit are our business elites. We must (1) raise the effective corporate tax rate to 35%, and enact (2) the Real Corporate Profits Tax Act, imposing an additional 7% tax on all profits over $100M.
Close tax-dodging loopholes
US corporations dodge $90B per year in income taxes by setting up tax havens overseas (i.e., dishonestly claiming they operate in another country to avoid US taxes).
End tax incentives for outsourcing jobs
Today, businesses are allowed to deduct the cost of moving jobs overseas, thus incentivizing them to do so. Legislation like the End Outsourcing Act will end the practice.
🚨 Outlaw predatory corporate practices that hurt everyday Americans
Restrict stock buybacks
'Stock buybacks' are when companies buy up their own stock to artificially inflate its value, and in turn profits. These returns only go to the wealthiest shareholders; instead of investing their resources in their workers, operations, or innovation, large corporations are manipulating the markets to only benefit those at the top. The top S&P 500 companies use a whopping 54% of their earnings buying back stock. This trend needs to end.
Enforce oversight of taxpayer bailout funds
Taxpayers are called upon to bail out Wall Street and big businesses like US airlines when their mismanagement and corruption bankrupts their business. If we bail out Big Business, they must pay us back.
Crack down on monopolization
Corporate consolidation is on the rise, while new company formation is on the decline, killing competition and fairness. Today's monopolies can raise prices while not doing anything to improve their products or services.
🤵♂️ Make the crazy-rich pay their share
Reinstate a responsible wealth tax
In America's post-WWII economic Golden Era, the richest Americans paid a top income tax rate of 91%. Today, the top rate is 43%. America has always recognized that those who have benefited disproportionately in our economy to pay their share – a wealth tax. The Ultra-Millionaire Tax Act would raise taxes by 2% on households making $50 million to $1 billion per year, and households making over $1 billion by 3%. This would raise $3T in revenue.
Reinstate a responsible estate tax
Inheritance income is taxed at a lower rate – the estate tax rate – than many Americans' income tax rate. Per ProPublica, “the estate tax has eroded despite historic amassing of wealth by the very richest." I support proposals that restore estate taxes to previous levels.
Reform the capital gains tax
The richest Americans make their income on investments, which are taxed at the "capital gains" tax rate that's lower than many Americans' income tax rate. Our elites shouldn't pay lower tax rates than our workers. We can raise the capital gains rate on investment-based income over $10M, without impacting everyday Americans' investments.
Enforce IRS audits of top-earners
Super-rich Americans are less likely to have their taxes audited by the IRS than ever before. Per Senator Ron Wyden, “lots of poor people are being audited and lots of well-off people getting off the hook.”
Cap CEO pay
CEOs make 350x more than their average worker today; in 1980 it was only 45x. There's no justification for this. We must instate tax penalties against businesses where CEO pay exceeds a 50:1 ratio to worker pay.
💸 Set wages that keep up with rising prices
Raise the minimum wage
The minimum wage hasn’t been raised in 13 years – the longest period in its history. The minimum wage today (and even a $15 minimum wage) doesn’t cover the cost of living anywhere in America. It's past time we raise it.
End corporate price-gouging
Corporations have been raising prices beyond the rate of inflation, “hurting consumers and fueling inflation.” The Price Gouging Prevention Act would crack down on this practice.
📉 Spend smart to reduce our debt
Reduce military spending
The US spends more on its military than nearly all other discretionary programs combined, and more than the next nine biggest countries combined. Our taxpayer dollars flow to large corporations and their CEOs; we need to rein in military spending and reallocate these funds towards the programs that actually promote American security.
Limit government subsidies for Big Business
We taxpayers give $100 billion in federal subsidies to US businesses, like $39 billion for our predatory fossil fuel industry or $153 billion to subsidize fast food workers' starvation wages. Americans shouldn't be propping up corporations who are enjoying record profits.
Grow our immigrant workforce
Reduce health spending with single-payer
America “spends more on health care as a share of the economy – nearly 2x as much – as the average OECD country.” If healthcare costs "continue to rise at current levels, they will exacerbate the nation’s fiscal outlook.” Enacting a single-payer healthcare program would reduce healthcare spending by $5 trillion; see details here.
Invest in social programs that produce returns
Republicans have chipped away at critical social programs for decades now; spending on social programs recently “fell to its lowest level as a share of the economy in 50 years.” We must aggressively invest in the key social programs that empower US workers – universal healthcare, education, childcare, housing, and more.
Read more about how we'll pay for these programs here.
Immigrants grow our economy through labor gains, and place less strain on our national wallet than native-born Americans. Opening our borders “increases economic efficiency both in the US and in immigrant-sending countries, because different kinds of labor is better matched around the world." Per the CATO Institute, “immigrants are not a drain on government finances,” as they pay $80K more in taxes during their lifetimes than they collect in government services. Facilitating immigration is key to growing revenue; see details here.