Jayne: The government can save capitalism
Meanwhile, Republicans in Congress balk at any increase in the corporate tax rate, which went from 35% to 21% with Trump’s tax cuts. To preserve these cuts, the Republicans use a little conjuring: “Look over there! Antifa! Critical breed theory! Socialism! Don’t worry about tax policy, which impacts your daily life! Worry about these scary things! “
Corporate tax increases, as part of President Joe Biden’s infrastructure proposal, would help pay for roads, bridges, airports, internet access, cleaner water, cleaner air, hospitals, access to daycare centers, etc. You know, things that would make Americans’ daily lives better – and things that would help American businesses compete globally. At least that’s the idea; we shouldn’t be so naive to believe that government ideas always go as planned.
But there is more to making capitalism work than simply raising taxes on the rich. There is also the strengthening of the Consumer Financial Protection Bureau, which was created in the wake of the Great Recession. The Trump administration has done its best to undermine the office, clinging to the strategy of failing the government so that critics can say, “See, government doesn’t work.
Congressional reduction of the Glass-Steagall Act precipitated the Great Recession. Congressional reduction of the Dodd-Frank Act paved the way for yet another economic calamity. And policies driven by the trickle-down economy fantasy have undermined the middle class.
As the Pew Research Center reported this year: “Income growth over the past few decades has tilted toward higher income households. At the same time, America’s middle class, which once included the clear majority of Americans, is shrinking. As a result, a larger share of the country’s overall income now goes to high-income households and the share going to middle- and lower-income households is declining. “