We have to do better

I read three things a few weeks ago that really bothered me. The national ratio of ceo-to-worker pay hit 325:1. The number of people in poverty hit 46.2 million (27.4% of blacks and 22% of children live below the poverty line). CEOs of 25 large corporations were paid more than their companies paid in taxes, thanks to rebates and tax credits.

Income inequality is the biggest obstacle to economic growth. It has been increasing steadily since 1980, with the largest increases going to the top 1%.

The top 20% control 85% of American wealth; the bottom 40% control around 0.3% (financial wealth is worse: the top 20% control 93%). The top 20% receive about 61% of income, the top 1% about 24%, and the rich are getting richer. The top 1% are getting richer the fastest. The bottom 60% of households saw income fall in 2010.

We hear a lot about income tax, but very little about the payroll tax, which provides nearly the same amount of revenue, and hits the poor and middle classes much harder. Or that the Bush tax cuts are primarily responsible for increases in "zero tax liability."

We hear that returning tax levels to what they were ten years ago would be a "crushing blow." That anyone who favors higher tax rates for the wealthy is a "socialist." That having everyone pay payroll taxes on all his income would be "crippling." We need more.

The best approach is probably a combination of a more progressive tax system with fewer loopholes and rebates and higher top rates, and a government-led effort to reduce unemployment.

Bottom line: We are a wealthy country. We can do better.