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

By Friends of Megan Outten July 29, 2025
Megan Outten, a lifelong Wicomico County resident and former Salisbury City Councilwoman, officially announced her candidacy recently for Wicomico County Council, District 7. At 33, Outten brings the energy of a new generation combined with a proven record of public service and results-driven leadership. “I’m running because Wicomico deserves better,” Outten said. “Too often, our communities are expected to do more with less. We’re facing underfunded schools, limited economic opportunities, and years of neglected infrastructure. I believe Wicomico deserves leadership that listens, plans ahead, and delivers real, measurable results.” A Record of Action and A Vision for the Future On Salisbury’s City Council, Outten earned a reputation for her proactive, hands-on approach — working directly with residents to close infrastructure gaps, support first responders, and ensure everyday voices were heard. Now she’s bringing that same focus to the County Council, with priorities centered on affordability, public safety, and stronger, more resilient communities. Key Priorities for District 7: Fully fund public schools so every child has the opportunity to succeed. Fix aging infrastructure and county services through proactive investment. Keep Wicomico affordable with smarter planning and pathways to homeownership. Support first responders and safer neighborhoods through better tools, training, and prevention. Expand resources for seniors, youth, and underserved communities. Outten’s platform is rooted in real data and shaped by direct community engagement. With Wicomico now the fastest-growing school system on Maryland’s Eastern Shore — and 85% of students relying on extra resources — she points to the county’s lagging investment as a key area for action. “Strong schools lead to strong jobs, thriving industries, and healthier communities,” Outten said. “Our schools and infrastructure are at a tipping point. We need leadership that stops reacting after things break — and starts investing before they do.” A Commitment to Home and Service Born and raised in Wicomico, Megan Outten sees this campaign as a continuation of her lifelong service to her community. Her vision reflects what she’s hearing from neighbors across the county: a demand for fairness, opportunity, and accountability in local government. “Wicomico is my home; it’s where I grew up, built my life, and where I want to raise my family,” Outten said. “Our county is full of potential. We just need leaders who will listen, work hard, and get things done. That’s what I’ve always done, and that’s exactly what I’ll continue to do on the County Council.” Outten will be meeting with residents across District 7 in the months ahead and unveiling more details of her platform. For more information or to get involved, contact info@meganoutten.com
By John Christie July 29, 2025
Way back in 1935, the Supreme Court determined that independent agencies like the Consumer Product Safety Commission (CPSC), the National Labor Relations Board (NLRB) and the Merit Systems Protection Board (MSPB) do not violate the Constitution’s separation of powers. Humphrey’s Executor v. United States (1935). Congress provided that the CPSC, like the NLRB and MSPB, would operate as an independent agency — a multi-member, bipartisan commission whose members serve staggered terms and could be removed only “for neglect of duty or malfeasance in office but for no other cause.” Rejecting a claim that the removal restriction interferes with the “executive power,” the Humphrey’s Court held that Congress has the authority to “forbid their [members’] removal except for cause” when creating such “quasi-legislative or quasi-judicial” bodies. As a result, these agencies have operated as independent agencies for many decades under many different presidencies. Shortly after assuming office in his second term, Donald Trump began to fire, without cause, the Democratic members of several of these agencies. The lower courts determined to reinstate the discharged members pending the ultimate outcome of the litigation, relying on Humphrey’s , resulting in yet another emergency appeal to the Supreme Court by the administration. In the first such case, a majority of the Court allowed President Trump to discharge the Democratic members of the NLRB and the MSPB while the litigation over the legality of the discharges continued. Trump v. Wilcox (May 22, 2025). The majority claimed that they do not now decide whether Humphrey’s should be overruled because “that question is better left for resolution after full briefing and argument.” However, hinting that these agency members have “considerable” executive power and suggesting that “the Government” faces greater “risk of harm” from an order allowing a removed officer to continue exercising the executive power than a wrongfully removed officer faces from being unable to perform her statutory duty,” the majority gave the President the green light to proceed. Justice Kagan, joined by Justices Sotomayor and Jackson, dissented, asserting that Humphrey’s remains good law until overturned and forecloses both the President’s firings and the Court’s decision to award emergency relief.” Our emergency docket, while fit for some things, should not be used to “overrule or revise existing law.” Moreover, the dissenters contend that the majority’s effort to explain their decision “hardly rises to the occasion.” Maybe by saying that the Commissioners exercise “considerable” executive power, the majority is suggesting that Humphrey’s is no longer good law but if that is what the majority means, then it has foretold a “massive change” in the law and done so on the emergency docket, “with little time, scant briefing, and no argument.” And, the “greater risk of harm” in fact is that Congress provided for these discharged members to serve their full terms, protected from a President’s desire to substitute his political allies. More recently, in the latest shadow docket ruling in the administration’s favor, the same majority of the Court again permitted President Trump to fire, without cause, the Democratic members of another independent agency, this time the Consumer Product Safety Commission (CPSC). Trump v. Boyle (July 23, 2025). The same three justices dissented, once more objecting to the use of the Court’s emergency docket to destroy the independence of an independent agency as established by Congress. The CPSC, like the NLRB and MSPB, was designed to operate as “a classic independent agency.” In Congress’s view, that structure would better enable the CPSC to achieve its mission — ensuring the safety of consumer products, from toys to appliances — than would a single-party agency under the full control of a single President. “By allowing the President to remove Commissioners for no reason other than their party affiliation, the majority has negated Congress’s choice of agency bipartisanship and independence.” The dissenters also assert that the majority’s sole professed basis for the more recent order in Boyle was its prior order in Wilcox . But in their opinion, Wilcox itself was minimally explained. So, the dissenters claim, the majority rejects the design of Congress for a whole class of agencies by “layering nothing on nothing.” “Next time, though, the majority will have two (if still under-reasoned) orders to cite. Truly, this is ‘turtles all the way down.’” Rapanos v. United States (2006). * ***** *In Rapanos , in a footnote to his plurality opinion, former Supreme Court Justice Scalia explained that this allusion is to a classic story told in different forms and attributed to various authors. His favorite version: An Eastern guru affirms that the earth is supported on the back of a tiger. When asked what supports the tiger, he says it stands upon an elephant; and when asked what supports the elephant, he says it is a giant turtle. When asked, finally, what supports the giant turtle, he is briefly taken aback, but quickly replies "Ah, after that it is turtles all the way down." John Christie was for many years a senior partner in a large Washington, D.C. law firm. He specialized in anti-trust litigation and developed a keen interest in the U.S. Supreme Court about which he lectures and writes.
By Shore Progress, Progessive Maryland, Progressive Harford Co July 15, 2025
Marylanders will not forget this vote.
Protest against Trumpcare, 2017
By Jan Plotczyk July 9, 2025
More than 30,000 of our neighbors in Maryland’s first congressional district will lose their health insurance through the Affordable Care Act and Medicaid because of provisions in the GOP’s heartless tax cut and spending bill passed last week.
Farm in Dorchester Co.
By Michael Chameides, Barn Raiser May 21, 2025
Right now, Congress is working on a fast-track bill that would make historic cuts to basic needs programs in order to finance another round of tax breaks for the wealthy and big corporations.
By Catlin Nchako, Center on Budget and Policy Priorities May 21, 2025
The House Agriculture Committee recently voted, along party lines, to advance legislation that would cut as much as $300 million from the Supplemental Nutrition Assistance Program. SNAP is the nation’s most important anti-hunger program, helping more than 41 million people in the U.S. pay for food. With potential cuts this large, it helps to know who benefits from this program in Maryland, and who would lose this assistance. The Center on Budget and Policy Priorities compiled data on SNAP beneficiaries by congressional district, cited below, and produced the Maryland state datasheet , shown below. In Maryland, in 2023-24, 1 in 9 people lived in a household with SNAP benefits. In Maryland’s First Congressional District, in 2023-24: Almost 34,000 households used SNAP benefits. Of those households, 43% had at least one senior (over age 60). 29% of SNAP recipients were people of color. 15% were Black, non-Hispanic, higher than 11.8% nationally. 6% were Hispanic (19.4% nationally). There were 24,700 total veterans (ages 18-64). Of those, 2,200 lived in households that used SNAP benefits (9%). The CBPP SNAP datasheet for Maryland is below. See data from all the states and download factsheets here.
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