To the Editor:
Economic growth is not induced by letting the richest corporations and individuals forego state and federal progressive taxes. Illinois Speaker Mike Madigan’s millionaire tax is overdue. Illinois should have been requiring $2 billion in more taxes yearly, from corporate and the wealthy.
The General Accounting Office said corporate taxes have dwindled. Years ago, the effective tax rate was six percent of GDP, now a third of that. Thus, low taxes do not cause economic growth for needed expenses such as police paychecks, infrastructure or pensions.
The wealthiest have been hoarding money for years. The wealthy underpaying taxes, despite billions in profits, contributes to the problem. Privatization and deregulation do, too.
Financiers in that top one percent have doubled since President Ronald Reagan’s administration. Financial acquired most of the housing prices and derivatives. The Treasury Department’s Adam Cole found the fastest-growing income goes to bankers.
High debt does not slow growth. Ending public spending to initiate austerity slows growth. Low millionaire taxes do not induce economic growth. Tax progressively. (A flat tax is not progressive.)