Increasing Inequality: We Must do More for Wealthy Americans

I read an article by Nicholas Kristoff recently that said that the wealthiest 1% of Americans earn nearly 24% of the income in the United States.  Mr. Kristoff compared the U.S. to the “banana republics” of South America, such as Venezuela, Nicaragua, and Guyana, where kleptocrats and others have ruined the economies.  He further states that from 1980 to 2005, more than 80% of the increase in American incomes went to the richest 1%.

This is deeply troubling.  How can America be a truly great country if our wealthy are being compared merely to the richest people in troubled South American countries?  Has our nation, the nation of the Carnegies, Rockefellers, and Vanderbilts, really fallen this far?

We must do more for the wealthy in our country.  The debate before Congress about extending the Bush era tax cuts for the wealthy is absurd.  We must do away completely with income taxes for the richest 1% of Americans immediately. But this is not enough.  I propose the following immediate steps:

·        1. Implement mandatory increases in CEO pay until it is at least 1000 times higher, on average, than that of the lowest paid workers.  Right now, the poor CEOs are getting only about 550 times more, a miserly rate of pay for the truly wealthy.

·        2. Eliminate all capital gains taxes for the wealthiest 1%.  These dedicated Americans are driving our economy and their wealth must be protected.

·        3. Eliminate permanently all inheritance taxes.

·        4. Initiate supplemental government payments to companies managed by the wealthiest Americans to increase the competitiveness of these businesses in the troubled global economic environment in which they operate.

·        5. Develop a few elite government-funded schools for wealthy children so they can get an early start on managing wealth.  It is not as easy as it looks.  One spoiled child can ruin a family empire.

·       6.  As a last resort, we should initiate welfare payments to our wealthiest Americans to be sure that they remain on top of the global wealth standings.

America’s great reputation is at risk if we don’t move quickly.  A failure to act will ensure that the richest people in China, India, and Mexico will earn more than our own wealthy.  We cannot stand idly by while our country is put to shame by others.