End poverty to fix tax code

The one variable that everyone, and I mean everyone, misses about taxes andthe effective tax rates of anyone is the stagnant wages of working class and other below "middle class" incomes. While all businesses strive to lower their labor costs by keeping their wage scales as low as possible they are also forcing people into the negative effective tax bracket.

Think for two seconds what this negative effective tax does to our system of taxation. The federal government must use the tax code as a system of income redistribution because our capitalistic system refuses to equitably distribute income. This is the main reason why "trickle-down economics" failed.

The federal government must force the trickle down aspect by regulation, or the ones receiving the extra tax advantages will just enrich themselves. They call it keeping what they earn. All this does it put a positive spin on their greed. I mean, who cannot be in favor of keeping what they earn, but who also cannot be in favor of earning what they deserve?

Just look at one of our greediest businesses in the history of the planet: The Oil Industry, Does anybody believe that Exxon/Mobil, ConocoPhilips, Shell, or BP own the oil that they extract from the territories and waters of the United States? They don't own this oil! The United States owns this oil; we all own this oil. Why then are so few allowed to profit egregiously? But it's not just the oil industry,,,look at our financial services industry, health care industry, and if you do and ask why you will be immediately hit with it's their right to keep what they earn. I am not arguing that point, at all!

The point I am arguing is that all incomes need to rise, so all incomes can evade the negative tax rate, and henseforth all incomes paying into the system of taxation. When this happens we will ultimately see the need for the higher income tax bracket to be much less than it is today. This is why ending poverty is so important.

The problem with lower iincomes rising is now and always has been the fact that the capitalist want it both ways. They desire to adhere to all of their profits, and pay as little tax as possible. It is this little fact of human nature that has killed the trickle down theory not once, but twice, and I might add has has brought on two major recessions (1989 and 2007).

How much is your effective tax rate? Here is a link: http://www.moneychimp.com/features/tax_brackets.htm to the 2010 federal tax brackets and a nice calculator in which to ascertain where your situation sits.