I strongly disagree with Gary Neely’s suggestion (“In defense of Kelly,” Oct. 18) that reducing taxes and regulations on the “job creators” (an idea strongly supported by Rep. Mike Kelly) will somehow create jobs for the poor and middle class.
The facts indicate this couldn’t be further from the truth:
• Since 1955, corporate taxes as a percentage of federal revenue have fallen from 27.3 percent to 8.9 percent.
• Corporate taxes as a percentage of gross domestic product have fallen from 4.3 percent to 1.3 percent.
• Individual income/payrolls (taxes) as a percentage of federal revenue have increased from 58 percent to 81.5 percent.
As any reasonable person can clearly see, since 1955, this country’s tax burden has undoubtedly shifted from the so-called “job creators” to those of us who are actually out there earning a living.
Demand and consumption of the products and services that we need are what create economic growth. According to the writer’s model, and the aforementioned statistics, reduction of the burdensome taxes and overwhelming regulations should have led to, and perpetuated, an economic boom; yet, “boom” is hardly a term that describes today’s economy. The fact is that shifting the burden from the top to the middle and bottom simply reduces those sectors’ power to consume.
In the United States, the top 1 percent controls 43 percent of the financial wealth. The wealthiest 400 Americans control as much as the bottom 150 million.
How did this happen? Certainly not by empowering wage earners and lowering the burden for the overwhelming majority.
When we consider the facts and cut through the political jargon, it’s obvious that true wealth and job creation comes from those who are the consumers in this economy, thus generating the demand necessary for full and efficient recovery.
Come next November, let’s keep in mind that Kelly, indeed, turned his back on the poor and middle class. Let’s make sure we send to Washington a candidate who represents the true majority.