Shocking Statistic

On a Seattle Education blog, I read that in the 1950s corporations paid 80% of taxes, but now they pay 12-15%, which of course means the middle class has picked up this burden. If these statistics are correct, it sure seems to indicate that tax breaks to corporations could be more harm than help in the long run.

At the same time, CEOs went from making 30 times the average worker to 340 times the average worker. The trickle down economics model has not worked for many, including schools. Money is traveling upward into fewer and fewer hands while schools are struggling to make ends meet. Budget cuts in my school have resulted in classes at the contractural upper limits in my department; we have no room for new students without violating the contract.

Now, we hear it’s going to get worse. Washington State is looking at a $2.4 billion deficit after the previous $9 billion. Everyone with whom I speak in my district feels to think that the cuts will begin with health care and education again.

I don’t know what will happen, but more cuts will result in the loss of jobs. Revenue is not increasing around the state, so either more cuts or tax increases must occur.

My state’s tax structure and education funding model will probably have to change before any positive headway is made, and I have no idea when that will happen. If ever.

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3 thoughts on “Shocking Statistic

  1. ms_teacher

    It’s sad but not surprising. The recent protests by young people here in California over steep increases to college tuition and the protests in my school district over school closures gives me hope that this might change. I’m hoping for an awakening of people to start demanding that those who make the most, should be contributing the most to society.

    Reply
  2. Ed

    Actually, the statistic you quote is not even close to correct. In the 1950’s the top marginal tax rate on income was 91%. Here is a link to historical income tax rates from 1913 – 2009:

    http://www.taxfoundation.org/files/federalindividualratehistory-200901021.pdf

    What is particularly striking is not the rate at the top, but at the bottom. Note that the lowest tax rate was 20%, and the rate reached 50% at an income of $32,000.

    The tax burden on the middle class was much heavier in the 1950’s than today.

    Reply

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