GOP's (Backward) Answer to Income Inequality

Think back to January. Remember when the new Congress arrived all fired up and ready to begin their 2016 campaign to regain the White House?  Remember their wailing about income inequality? 

• Mitt Romney: 

• "Under President Obama the rich have gotten richer, income inequality has gotten worse and there are more people in poverty in America than ever before."

• Senator Ted Cruz (R-Texas): 

• "The facts are we're now facing a divided America when it comes to the economy."

• Representative Paul Ryan (R-Wisconsin): 

• "The Obamanomics that we're practicing now have exacerbated inequality...The wealthy are doing really well."

• Jeb Bush: 

• "The opportunity gap is the defining issue of our time.  More Americans are stuck at their income levels than ever before."

• Senator Marco Rubio (R-Florida) 

• called for a "fundamental change to how the federal government fights poverty."

• Wisconsin Governor Scott Walker (R): 

• "I worry that too many of our fellow citizens feel that (the American) dream has become out of reach for them and their families."

• House Speaker John Boehner (R-Ohio): 

• "Frankly, the president's policies have made income inequality worse."

• Senator Rand Paul (R-Kentucky): 

• "Income inequality has worsened under this administration...President Obama offers...policies that have allowed the poor to get poorer and the rich to get richer."

Now, remember the solutions and policies they offered to reduce the divide, to help the middle class and the poor?  Me either.  But they have come up with a solution to help those who are currently suffering on the tippiest-top of the income inequality scale--the put-upon 0.2 percent.

The House:  The Ways and Means Committee, led by Paul Ryan, has symbolically voted to completely eliminate the estate tax. (The vote was symbolic because, though there is a provision in the new House Republican budget to eliminate the estate tax, it is a non-binding provision as the budget moves into the appropriations stage.)

The Senate: Last week, the Senate voted on a budget amendment of their own to repeal estate taxes in their entirety.  The amendment, introduced by Senator John Thune (R-South Dakota) was endorsed by twenty-seven Republican Senators, including Majority Leader Mitch McConnell (R-Kentucky), Ted Cruz and Marco Rubio (R-Florida).  

Mr. Thune said the tax punishes Americans "for a lifetime of hard work," while Mr. McConnell called it, "unfair" and "anti-family."  In the end, every Republican in the Senate, with the exception of Maine's Susan Collins, voted in favor of the amendment.

Under current tax code, the "unfairly" targeted families of the uber-rich can inherit $5.43 million (from an individual) or $10.86 million (from a couple) without paying a penny in tax.  Over these thresholds, the poor "punished" heirs are taxed at a top rate of 40 percent, (down from a 2001 rate of 55 percent), though even the 40 percent rate is often reduced through creative accounting practices.

According to the Center on Budget and Policy Priorities, repealing the estate tax will reduce federal revenues by more than $250 billion over the next ten years.  That $250+ billion will go entirely to aid the 0.2 percent while doing absolutely nothing for 99.8 percent of Americans.

what eye thynk:  When Republicans started talking about income inequality a few months ago, I made the mistake of calling them insincere.  I apologize.  It was a failure on my part; I allowed myself to be fooled into thinking they were talking about reducing income inequality. Looking at their plans to assist the heirs of the richest of the rich, it is clear that their focus on income inequality is, in fact, entirely sincere--but their idea is to make it even bigger. 

As Paul Ryan said, "The wealthy are doing really well."  And the GOP is continuing its dedication to making sure that doesn't change.