The economic recession that is playing out shows just how much the middle class should receive a tax reduction benefit as one of the first priority of the new administration. Everyone knows that the middle class is the first to feel the effects of a recession but Republican policy have never taken that into consideration.
Job losses, weaker pay and weaker benefits hit the middle class the hardest and now other consequences from the recession are taking its toll on the middle class. Louisiana just announced it will have to cut back its budget because of the recession and guess what programs are going to take a hit. Yea, you guessed right, health care and other programs that are designed to help the middle class. It is happening all across state governments.
Our economist tell us that spending represents 71% of the economy. When the middle class is pushed farther and farther down their disposable income becomes insufficient. The transfer of wealth from the middle class to CEO's and executives instead of sharing the good times with the average worker is one of the causes.
Federal and state tax codes should be revised to benefit the middle class and adjusted from time to time so their income can stay ahead of inflation and other causes that erode their incomes. The present tax codes favor businesses but they do not use those benefits to expand business, create jobs or sustain the economy. It is used to increase their greed. The current economic conditions is proof.
It is time the middle class is put front and center and be at the heart of any economic recovery and tax reduction.
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