User:DKseed/Aftershock: The Next Economy and America's Future.

Aftershock: The Next Economy and America's Future ...

Robert Reich's Solution to America's Economic Crisis

Public Policy Professor Robert Reich in his 2010 book, "Aftershock: The Next Economy and America's Future", documents that America's economic problems are due to the inadequate purchasing power of the bottom 95% of American workers.

Thus, to overcome inadequate purchasing power of the bottom 95% of American workers, Professor Reich proposes shifting $600 billion yearly from the top 5% of income earners to the lower of end full time workers earning less than $50,000 yearly, and to reduce income taxes on the bottom 95% of workers.

Dr. Reich proposes to get another $210 billion dollars the first year from a tax on carbon that will be increased each year. This carbon tax money will be used to reduce taxes, support some of his other proposals cited below and reduce the U.S. Public Debt. Dr. Reich's increasing yearly taxes on carbon can eventually make renewable energy much more competitive than fossil fuels (coal, oil and gas) and help resolve the climate crisis!

Dr. Reich's figures are in 2009 dollars.

Robert Reich was secretary of labor under President Clinton, and is professor of public policy at the University of California, Berkeley.

Income Tax Increase only on Top 5%

Professor Reich proposes in "Aftershock" that full time workers earning less than $20,000 get another $15,000 though an earned income tax credit (EITC). Thus minimum wage workers will double their income from $15,000 dollars a year to $30,000! Workers earning $30,000 will get $10,000 extra. Workers earning $40,000 will get $5,000 extra. While workers earning $50,000 will get no extra money. Thus, EITC = $25,000 - (Income from $20,000 to $50,000) / 2. Wages, salary and all capital gains will be taxed at the same rate. Incomes below $50,000 will not be subject to income taxes.

Income from $50,000 to $90,000 will have their income tax rate reduced to 10%. Income from $90,000 to $160,000 will have their income tax rate reduced to 20%. Income from $160,000 to $260,000 will have their income tax rate increased to 40%. Income from $260,000 to $410,000 will have their income tax rate increased to 50%. Income above $410,000 will pay a marginal tax rate of 55%.

Carbon Tax Increased Yearly

Professor Reich proposes in the first year the tax on carbon would be $35 a metric ton of carbon dioxide. Dr. Reich states that $35 a ton will bring in $210 billion dollars that will be used to pay for some of his eight proposals listed here and reduce the National Debt. Dr. Reich states that in a few years the carbon tax should be raised to $115 a metric ton of carbon dioxide and that will bring in $600 billion dollars in a year then. Dr. Reich states the $115 carbon tax will raise the price of gasoline $1 dollar a gallon and electricity 6 cents a kilowatt-hour. However, the benefits to the people will far outweigh the extra costs to them.

James Hansen's Carbon Tax Distribution

Dr. Hansen proposes sharing equally 100% of the carbon tax collected with all Americans on a monthly basis. Thus the $115 fee proposed by Robert Reich above for each metric ton of carbon dioxide produced from fossil fuels that would bring in $600 billion dollars in one year could give each American about $2,000 in a year by Dr. Hansen's proposal. Then a family of four would get $8,000 that year. This will many times over cover the extra cost of price increases from fossil fuels.

Economic Justice Actions Meaning

The UN "Universal Declaration of Human Rights" states the human right to a just and favorable remuneration that is supplemented if necessary. . Robert Reich with his economic plan detailed above addresses this Human Right for U.S. full time workers.

Further the UN "Universal Declaration of Human Rights" states the Human Right to an adequate standard of living for health and well being that includes food, clothing, housing and medical care, and the right to security in circumstances beyond ones control.

Economic Justice Actions include the eradication of poverty as an ethical imperative. The Earth Charter for a Sustainable Future to eradicate poverty states as follows: "Guarantee the right to portable water, clean air, food security, uncontaminated soil, shelter, and safe sanitation, allocating the national and international resources required".

Thus, Economic Justice Actions involves helping all people have an adequate income or vouchers to meet their basic needs.

External links

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