We Can’t and Shouldn’t Turn the Clock Back, But…
George Shivers • August 13, 2024
Believe it or not, those who idealize the 1950s may be right on target, at least in some areas:
- By the mid-50’s the U.S. was at peace for the first time in almost a decade.
- The Supreme Court’s decision in the Brown vs. Board of Education case outlawing school segregation opened the way for the civil rights movement, leading eventually to much greater racial equality.
- During the administration of President Dwight D. Eisenhower from 1953 to 1961, the top income tax bracket in the U.S. was 91% and taxes on corporate profits were two times greater than they were in 2017. The tax on large estates went up to more than 70%. And keep in mind that Eisenhower was a Republican, albeit of the old school.
- One third of workers were unionized and on an equal footing for negotiation with management.
- In 1955 Fortune magazine reported that the incomes of the top 0.01% of Americans had dropped by more than half of what they had been in the 1920s and their share of total income had dropped by 75%.
- The average corporate CEO received a salary 20 times greater than his company’s typical employees, while by 2016 the salaries of CEOs were more than 200 times more than that of the average worker.
- Well-paid workers were able to consume more, thereby leading to business expansion and hiring, and thus raising corporate profits and producing higher wages and more hiring.
Since the passing of that halcyon period of economic growth and greater income equality, this country has basically jumped back to the period of the “Robber Barons” of the late 19th and early 20th centuries. That transformation began during the administration of President Ronald Reagan and has continued when Congress has had Republican majorities and under other Republican presidents, culminating in Donald Trump’s major tax cuts for the wealthy in 2017 with the Tax Cuts and Jobs Act of that year.
In a written statement presented to a Senate Budget Committee hearing on “The Income and Wealth Inequality Crisis in America,” Sarah Anderson, director of the Global Economy Project at the Institute for Policy Studies, made the following points:
- In 1980 the CEOs of big companies average 42 times more compensation than their typical workers. During the present century, the annual gap has averaged 350 to 1.
- Women and workers of color make up a disproportionate share of low-wage workers and a tiny share of corporate leadership: only 1% of CEOs in the 500 largest corporations are Black, 2.4% are Asian, 3.4% Latino, and 6% women.
- The financial crisis of 2008-09 is “a dramatic example of how corporate pay practices that incentivize reckless behavior put us all at risk.”
- Contributing to the crisis, according to a Harvard study, publicly held corporations, especially the largest ones, extended huge executive stock grants when the market was at its lowest. These grants drove up executive compensation at Russell 3000 firms by 37% between 2008 and 2010.
- Corporate CEOs have taken advantage of the covid crisis by outsourcing jobs and turning many others into low-wage, part-time work without benefits. Examples given by Anderson include Coca Cola, Tyson Foods, and Carnival Cruise Lines.
- A Harvard study on the negative impact of large pay gaps on company performance reinforce the theory proposed by Treasury Secretary Janet Yellen in 1990 that pay disparity causes resentment among lower-level employees resulting in their taking actions, such as shirking or quitting, thereby undermining the company’s effectiveness.
- In 2016 a Stanford survey showed that 52% of Republicans want to cap CEO pay relative to worker pay.
In her testimony Anderson made the following recommendations for reducing income inequality:
Tax Excessive CEO Pay Act. This legislation would apply a graduated tax rate increase on large corporations based on the size of the pay gap between their CEO and the median worker.
Financial Transaction Tax. Placing a financial transaction tax on Wall Street trades would generate much needed revenue and curb executive excess.
CEO pay ratio incentive in federal procurement. Giving corporations with narrow pay ratios preferential treatment in granting government contracts.
Close the “carried interest” loophole. “Carried interest” refers to earnings that are tied to a percentage of the company’s profits. It is actually compensation for managing other people’s investments and should be taxed as regular income.
Fully close a loophole that allows unlimited tax deductions for excessive pay.
Restrict stock buybacks.
Require top financial executives to contribute compensation into a fund to pay for penalties.
Finalize and firmly enforce the remaining Dodd-Frank executive compensation reforms.
Additional recommendations made by Anderson include making it easier to organize and form labor unions, taxing the accumulated wealth of the ultra-rich, taxing investment income at the same rate as income from work, raising corporate income tax rates on offshore profits to make them equal to domestic rates, and shutting down the means used by the wealthy to hide money and avoid taxes. Further, she suggests broadly canceling federal student debt and establishing a “baby bonds” program to help narrow the racial wealth divide. “Baby bonds” refers to a government policy in which every child at birth would receive a publicly funded trust account, potentially with more funding for lower income families.
Democrats in Congress are working to remedy tax inequities and salary inequities. President Biden also made his intentions clear for 2025 before he dropped out of the electoral race. There is no doubt that Vice president Harris agrees.
The Democrats’ plan is to increase the tax rate of the wealthy and of corporations. The increased revenue would be invested in childcare programs, internet access, and housing.
A proposal introduced by progressive legislators, including Sen. Elizabeth Warren (D-MA), this year would put into effect a 2% tax on households worth $50 million to $1 billion and a 3% tax on those worth more than a billion. According to an article in USA Today by Riley Beggin, it would affect the wealthiest 100,000 households in the country, which amounts to about 0.05% of the population. It includes provisions to prevent people from dodging the tax. The proposal also includes a 40% exit tax on those worth more than $50 million who dump their citizenship to avoid paying. According to the Wharton Budget Model at the University of Pennsylvania the proposal would produce an estimated $2.7 trillion over the next decade.
Much hangs on the election in November. We cannot expect any major changes in tax policy or in income inequities without a substantial victory by the Democrats. They must take not only the presidency, but also win majorities in the House and Senate. That can only happen if the Party wins over Independents and moderate Republicans.
A native of Wicomico County, George Shivers holds a doctorate from the University of Maryland and taught in the Foreign Language Dept. of Washington College for 38 years before retiring in 2007. He is also very interested in the history and culture of the Eastern Shore, African American history in particular.
Common Sense for the Eastern Shore
At Shore Progress’s monthly meeting last week, the tension between national politics and local opportunity was on full display. With President Donald Trump escalating his attacks on offshore wind, representatives from US Wind and the Oceantic Network made their case directly to members gathered in Salisbury. From the outset, the presenters stressed the scale of what’s coming to the Eastern Shore. “This project is the equivalent of building two nuclear power plants off our coast,” US Wind representative Dave Wilson said, pointing to plans for 114 turbines and four offshore substations. Together, he said, the project will generate two net gigawatts of clean energy, enough to power approximately 26% of the homes in Maryland. The presentation walked members through the timeline: a four-phase buildout beginning in the southeast corner of the lease area, with each phase, including its own export cable, routed through Indian River Bay into the regional grid at the Indian River Power Plant in Delaware. Environmental safeguards on display Slides showed how US Wind plans to minimize negative effects on wildlife. The company will use an aircraft detection lighting system to keep turbines dark until a low-flying aircraft approaches, reducing night-sky light pollution. Marine protections include bubble curtains to dampen noise during pile driving, visual and acoustic monitoring for whales, and strict shutdown zones if animals enter construction areas. Lights will be on less than 1% of the time in any given year, underscoring their view that offshore wind can coexist with migratory birds, commercial fishing, and marine transit. Economic promise for the Shore The discussion turned quickly to what the project means locally. US Wind pledged hundreds of jobs for the Shore, with commitments to use union labor and partner with minority, women, and veteran-owned businesses. Officials noted that the Lower Shore Workforce Alliance has already received $700,000 from Maryland Works for Wind to build training programs, while community colleges are adjusting trade curricula to educate the next generation of turbine technicians. A planned operations and maintenance facility in West Ocean City will house technicians and crew transfer vessels, bringing steady employment and infrastructure investment to the harbor. A national fight with local stakes The meeting didn’t shy away from politics. Several members noted Trump’s repeated attempts to derail offshore wind projects including his latest push to revoke US Wind’s federal permit. US Wind officials acknowledged that such lawsuits could delay progress but insisted that the project’s federal approvals are on solid ground. “This is the Eastern Shore's moment,” Shore Progress Chair Jared Schablein said, referring to a slide that showed more than $815 million in offshore wind investments statewide. “The question is whether politics will slow us down, or whether we keep building for the Shore’s future.” The presentation had a clear message: Offshore wind is not just about clean power, but also about jobs, investment, and opportunity for Eastern Shore families. Jan Plotczyk spent 25 years as a survey and education statistician with the federal government, at the Census Bureau and the National Center for Education Statistics. She retired to Rock Hall.
Standing at the Legacy at Twin Rivers apartment community in Howard County, Maryland Gov. Wes Moore signed an executive order aimed at addressing his state’s deepening housing crisis. Titled Housing Starts Here, his order is designed to accelerate construction of affordable homes and cut through what Moore called years of “no and slow” decision-making in state housing policy. Maryland is facing a shortage of at least 96,000 housing units, according to state estimates, a gap that officials say has driven up prices, pushed families out of the state, and stifled economic growth. “Building pathways to wealth for Marylanders, creating jobs, attracting new businesses and residents, growing our economy, and securing our future all start with housing,” Moore said at the signing. “We need to be the state of yes and now.” Five guiding principles The executive order lays out five core priorities for state housing policy: Use state land for housing . Agencies must identify surplus properties and land near transit stations that can be converted into new housing developments. Cut red tape. State permitting processes will be streamlined, with new rules allowing third-party reviewers to accelerate approvals. Strengthen partnerships. A new State Housing Ombudsman will serve as a liaison to help coordinate projects between state agencies, local governments, and developers. Set clear goals. By January 2026, the state will publish housing production targets for each county and update them every five years. Incentivize affordable housing. Jurisdictions that meet housing targets or pass pro-housing policies will be recognized with new Maryland Housing Leadership Awards, making them more competitive for state funding. Speed as the priority State officials said the new framework is focused on cutting delays that can hold back projects for years. By digitizing applications, engaging multiple agencies simultaneously, and allowing outside reviewers, the state aims to expedite project completion while upholding environmental and community standards. What could this mean for us on the Eastern Shore? Moore acknowledged that housing affordability consistently ranks as Marylanders’ No. 1 concern. For young people in particular, high costs and long commutes are major reasons they leave the state. The order seeks to reverse that trend, tying housing growth to job creation and transit access. On the Eastern Shore , where rental availability and starter homes are limited, Moore’s order could open opportunities for mixed-use, transit-oriented projects on state-owned land, as well as accelerate approval for affordable housing initiatives backed by nonprofits and local developers. What comes next The Department of Housing and Community Development will publish the state’s first set of production targets by Jan. 1, 2026, followed by annual progress reports starting in 2027. Agencies have until March 2026 to implement many of the new permitting and funding acceleration rules. Moore framed the executive order as a generational investment. “Making housing more affordable is not just about building shelter, it’s about building a legacy,” he said.
Sen. Angela Alsobrooks (D-Md.) has intensified her calls for Health and Human Services Secretary Robert F. Kennedy Jr. to step down, releasing a detailed report that she says proves his tenure has been a disaster for American families. The first senator to demand Kennedy’s resignation in May, Alsobrooks joined Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) in unveiling a 54-page report that chronicles what they describe as the “costly, chaotic, and corrupt” record of Kennedy’s first 203 days at the department. Released before Kennedy’s Senate hearing last week, the report outlines examples of alleged mismanagement for each day since he was sworn in on Feb. 13. “Robert Kennedy’s tenure as America’s chief health officer has been higher costs, more chaos, and boundless corruption,” Wyden said. “His actions are endangering children, leaving parents confused and scared, and forcing families and taxpayers to pay more for their health care.” Echoing that assessment, Alsobrooks cited testimony from scientists at the National Institutes of Health in Maryland who she says have watched critical cancer research grind to a halt under Kennedy’s leadership. “His actions are increasing Americans’ health care costs, causing chaos, and furthering the Trump administration’s endless stream of corruption,” she said. The report argues that Kennedy has: Driven up costs by backing the Trump administration’s budget plan, which Alsobrooks says strips health coverage from 15 million Americans while handing tax breaks to the wealthy and corporations. Created chaos by dismantling HHS programs, undermining research institutions, and promoting vaccine misinformation. Engaged in corruption by using the office to advance personal and family financial interests, particularly around limiting vaccine access. Public Citizen, a consumer advocacy group, praised Alsobrooks’ leadership. “President Trump and Senate Republicans made a grievous error when entrusting Kennedy with our nation’s health,” the group said in. “It is far past time that President Trump rectifies this error by firing Kennedy before more lives are unnecessarily put at risk.” Alsobrooks appeared on the Morning Joe TV show on to discuss the findings and to reiterate her demand that Kennedy resign or be removed. “This is about protecting families and protecting science,” she said. “Our nation’s health system cannot afford another day under Robert Kennedy’s reckless watch.” As a community organizer, journalist, administrator, project planner/manager, and consultant, Gren Whitman has led neighborhood, umbrella, public interest, and political committees and groups, and worked for civil rights and anti-war organizations.
Wicomico County leaders have announced plans to move forward with the federal government’s controversial 287(g) program, entering into an agreement with U.S. Immigration and Customs Enforcement (ICE) that would deputize local officers to serve immigration warrants inside the county jail. Under the model selected, known as the Warrant Service Officer program, specially trained deputies at the detention center would be allowed to serve civil immigration warrants on individuals already in custody. County Executive Julie Giordano and Sheriff Mike Lewis emphasized that deputies would not conduct street-level immigration enforcement. “Public safety is our top responsibility,” Giordano said. “The Warrant Service Officer program provides our sheriff’s office with the tools they need to address individuals already in custody who may pose a risk to our community at no additional cost to the county.” Lewis added that the program “gives our deputies the ability to safely and lawfully carry out their duties while ensuring that Wicomico County remains a secure place to live, work, and raise a family.” Community pushback The announcement drew swift opposition from civil rights and community organizations, including the ACLU of Maryland, the Wicomico NAACP, and local grassroots groups such as Crabs on the Shore, who have warned that the agreement will harm immigrant families, sow fear, and erode trust between residents and law enforcement. Opponents also criticized the process, arguing that the decision was rushed through without meaningful public input despite repeated calls for hearings. “This is being framed as an administrative detail, but it has huge consequences for our neighbors,” one advocate said. Concerns about cost and precedent Supporters of the WSO model have emphasized that the partnership comes “at no additional cost” to Wicomico taxpayers, but critics point out that other jurisdictions have found otherwise. Anne Arundel County canceled its own 287(g) agreement, citing high costs and community backlash. The Camden Police Department in Delaware withdrew from a similar partnership after public protests in May. Advocates note that the federal government does not fully reimburse counties for the time, training, and legal exposure associated with 287(g) programs, leaving local taxpayers to shoulder hidden expenses. First on Delmarva If finalized, Wicomico County would become the first government or police agency on the Delmarva Peninsula to formally enter into a 287(g) agreement with ICE. Supporters say that distinction demonstrates a commitment to accountability and public safety. Opponents warn it risks branding the county as hostile to immigrant communities that have long been central to the Shore’s workforce, particularly in poultry processing and agriculture. The county’s decision comes amid a broader national debate about local involvement in federal immigration enforcement, with critics warning that partnerships like 287(g) make communities less safe by discouraging victims and witnesses from coming forward. For now, the final agreement is pending federal approval. But with strong opposition already mobilized, the fight over Wicomico’s new partnership is likely only beginning.
Wicomico County Republicans have moved forward with an agreement to join the federal 287(g) program, aligning the county with the U.S. Immigration and Customs Enforcement (ICE). County Executive Julie Giordano and Sheriff Mike Lewis are backing the program to train county officers at the detention center to help ICE identify non-citizens for deportation proceedings. The agreement has triggered strong pushback from immigrant advocates, civil rights groups, and community leaders who warn that this partnership will erode trust between residents and law enforcement, risk racial profiling, and allot local tax dollars to assist federal immigration enforcement. Yet amid the growing controversy, the Wicomico County Democratic Central Committee has issued no response to the ICE agreement, even as residents voice frustration that the Democratic establishment’s silence has ceded the conversation to Republicans. Moreover, the Central Committee has remained silent with regard to recent comments by Democratic Councilwoman April Jackson, who told the Washington Post that the poultry industry should reduce its reliance on immigrant workers. Jackson also said, “a lot of Americans aren’t employed because the Haitians are taking our jobs.” Jackson’s remarks have drawn widespread criticism from immigrant advocates. For many residents, the Democratic leadership’s silence is as much of a concern as the county government’s new partnership with ICE. As the county waits for federal approval of the 287(g) agreement, the absence of a Democratic counterweight has left immigrant families and community organizers to carry the opposition on their own.
With speculation mounting that Delegate Sheree Sample-Hughes (D-37A) may run for County Executive for Wicomico County in 2026, the longtime Eastern Shore lawmaker will headline a Community Conversation in Dorchester County on Sept. 17 at 6 pm. Sponsored by the Eastern Shore Democrats, the event will give residents the opportunity to hear Sample-Hughes speak about local priorities — schools, public safety, health care access, and economic development in the mid-Shore. Sample-Hughes, former Speaker Pro Tem of the Maryland House of Delegates, has represented portions of Wicomico and Dorchester counties for more than a decade. Her record includes bipartisan work on district projects, as well as efforts to expand health services and invest in infrastructure. Although organizers emphasize that the Sept. 17 gathering is not a campaign event, the timing has fueled interest. Political observers note that any appearance by Sample-Hughes will be closely watched as Democrats weigh potential challengers for County Executive in the upcoming cycle. The forum will include remarks from the delegate, followed by a question-and-answer session. Seating is available first-come, first-served and residents from across the Shore are encouraged to attend. Key details What: Community Conversation with Del. Sheree Sample-Hughes When: Sept. 17, 6 pm Where: Dorchester County, venue to be announced by organizers. Format: Remarks followed by audience Q&A Before her election to the House of Delegates, Sample-Hughes served on the Wicomico County Council. Should she enter the county executive race, many believe she would be a serious challenger to Republican incumbent Julie Giordano.
