Tax the Rich: An animated fairy tale – YouTube. (This animated video is 7 minutes and 30 seconds.) How did we get to Here? Once a manufacturing monster, the USA has a struggling economy with little manufacturing, chronically high unemployment, an ever expanding trade deficit, and a continued outsourcing problem that goes unfettered. The video explains a lot of it: with the drop of trade quotas, the signing of the World Trade Organization Agreement which dropped import taxes to 125 countries which fueled an explosion of outsourcing – the shipping of American jobs to other countries, never to be replaced. The only thing missing from the video are some of the statistics.
19.5 million manufacturing jobs 11.5 million manufacturing jobs
Loss of 8 million jobs due to outsourcing
5.5 million jobs lost from 2001 to 2009 (- 32%)
1.7 million jobs lost to outsourcing in 2010.
Predicted another 3.4 million private sector jobs may be lost to outsourcing by 2015.
14 million jobs are presently able to be shipped overseas (about 11% of all jobs).
Potential loss of obs – 13.7% in professional services.
Potential loss of jobs – 12.4% in manufacturing.
Currently white collar jobs (service jobs) make up 61% of all U.S. jobs.
(86,006,000 out of 139,877,000 total jobs).
Many service jobs can be outsourced or automated.
This is a result of outsourcing which is a result of the World Trade Organization agreement and NAFTA.
Top 20% owns 80% of all U.S. wealth in 1980.
Top 20% (earns $68,000 and up) owns 89% of all wealth in 2009.
94% of all new financial wealth from 1981 to 2008 went to the top 20%.
Income for the bottom 90% (bottom 90% less than $110,000 per year) has gone down since 1997.
This is the result of trickle down economics and outsourcing.
Corporations pay 26% of all federal taxes. Corporations pay 9%.
Payroll Taxes make up 11% of federal taxes. Payroll taxes make up 35%.
Fact: A lower tax rate actually destroys jobs. When tax rates are low, businesses will pull money out of their business and re-invest in other investments or tax shelters. When the tax rates are higher, businesses will re-invest money into the business, which cause an increase in jobs.
This is a result of big corporations fixing the tax code by buying politicians to do their bidding.
2. The decrease of corporate tax payments – Huffington Post