The Real Story Of The Two Americas

The Real Story Of The Two Americas

by | Jan 24, 2024 | Opinion

By Stephen Moore |

For the past thirty years or so the left has invented a narrative that there are two Americas. A group of very super-rich people (the one percenters) who have prospered over the past several decades, and everyone else who has gotten poorer. It’s a fairy tale narrative because almost all Americans have seen financial progress. The median household income adjusted for inflation rose by more than 40% since 1984.

Prosperity isn’t an “us versus them” zero-sum game. A rising tide really does lift all boats.

But there really are Two Americas today. First, there are the cultural and over-educated snobs – the kind of people who religiously read the New York Times, drive EVs, wear Harvard or Yale sweaters, and have never even heard of NASCAR or eaten at Popeyes or ridden a John Deere tractor.

And then there is normal main street America. The snobs thumb their collective noses at the unrefined working-class Americans. The elites believe they are intellectually, culturally, and morally superior to the working class and rural America. You won’t see too many elites at a Trump rally with 30,000 people.

A group I helped found, the Committee to Unleash Prosperity, just published a study entitled “Them Vs. U.S.” examining how America’s cultural elites (defined as at least one postgraduate degree, $150,000+ annual income, high-density urban residence, and attended an Ivy League school) are hopelessly out of touch with ordinary Americans. Pollster Scott Rasmussen did the research.

Here are some of the key jaw-dropping revelations from the survey:

  • Financial Well-being: Nearly three-quarters of the elites surveyed, believe they are better off now financially than they were when Joe Biden entered the White House. Less than 20% of ordinary Americans feel the same way.
  • Individual Freedom: Elites are three times more likely than all Americans to say there is too much individual freedom in the country. Astonishingly, almost half of the elites and almost six-of-ten ivy leaguers say there is too much freedom.
  • Climate Change: An astonishing 72% of the Elites – including 81% of the Elites who graduated from the top universities – favor banning gas cars. And majorities of elites would ban gas stoves, non-essential air travel, SUVs, and private air conditioning. That means no air travel with the kids to Disney World.
  • Education: Most elites think that teachers unions and school administrators should control the agenda of schools. Most mainstream Americans think that parents should make these decisions.

Oh, and about three-quarters of these cultural elites are Biden supporters. Surprised?

The Grand Canyon-sized divide between the elites in America and ordinary Americans is so profound that it is as if they live in two different countries. Silicon Valley, Manhattan, and Washington, D.C. have become bubbles that have lost contact with everyday Americans. This explains why the political class – which is a big part of the elite group – is confused by poll numbers showing that voters are feeling financially stressed out. The elites are doing fine, so they believe that everyone is prospering. I suspect that most don’t want radical change in the public schools because their kids attend blue-chip private schools. They are fine with abolishing SUVs because in big cities Americans generally don’t drive those cars – if they drive cars at all.

Crime, illegal immigration, inflation, fentanyl, and factory closings aren’t keeping the elite up at night because in their cocoons they don’t encounter these problems on a daily basis the way so many Americans do today. Not too many main street Americans are losing sleep about climate change or LGBTQ issues.

The elites in America tend to work in the “talking professions” – university professors, journalists, lawyers, actors, and lobbyists. They keep talking and normal Americans are more than ever not listening to them.

Daily Caller News Foundation logo

Originally published by the Daily Caller News Foundation.

Stephen Moore is a contributor to The Daily Caller News Foundation, co-founder of the Committee to Unleash Prosperity, and chief economist with FreedomWorks.

Federal Tax Changes Could Kill Thousands of Arizona Jobs And Lead To $12 Billion In Lost Investments

Federal Tax Changes Could Kill Thousands of Arizona Jobs And Lead To $12 Billion In Lost Investments

by | Sep 12, 2021 | News

By Terri Jo Neff |

Proposed changes to how federal capital gains and inheritances are taxed would cost Arizona families billions of dollars in lost economic output and investment income over the next decade, not to mention kill thousands of jobs, according to an economic impact analysis released last week.

The report issued Sept. 9 by Committee to Unleash Prosperity examined the direct effects federal legislative proposals like the Sensible Taxation and Equity Promotion (STEP) Act put forth by the Biden Administration would have on financing costs, labor productivity, costs to small and family-owned businesses and farms, and federal non-military spending of new revenue.

U.S. Senator Chris Van Hollen (D-Maryland) is joined by Sens. Cory Booker, Bernie Sanders, Sheldon Whitehouse, and Elizabeth Warren in supporting the STEP Act and other proposed federal legislation also seek to make death a tax realization event and to increase the tax liability of trusts commonly utilized by small businesses, family- and privately-owned enterprises, farm and ranch operations, and others.

And the result over the next decade would hit thousands of Arizonans hard, according to the analysis conducted by Regional Economic Models, Inc. (REMI). The results would include sustained annual job losses in the state from 8,000 to nearly 20,000. That translates to 80,000 to almost 200,000 fewer job-year equivalents over 10 years, the report states.

In addition, the Biden-supported STEP Act and similar legislation would increase the top capital gains tax rate to 39.6 percent, which becomes 43.4 percent if the taxpayer is also subjected to a 3.8 percent net investment income tax (NIIT).

The changes would create $12 billion in private investment losses for Arizonans, a $120 million decline in research & development spending, and a 10-year loss in personal income of about $20 billion in Arizona, the analysis showed. The analysis does not address any further effect attributed to state capital gains, estate, or inheritance taxes.

The negative impact of changing federal tax law is driven by several factors, including increased capital and tax liability costs faced by businesses and farms. In turn, that translates into higher prices for consumer goods and services and makes the domestic private sector less hospitable for new and existing businesses, especially small and family-owned businesses and farms that are often less resilient to economic shocks.

“Higher prices mean that consumers are able to make fewer purchases, slowing demand throughout the economy from retailers to manufacturers to service providers,” the report states. “A less hospitable private sector means that prospective businesses may choose not to open, existing businesses may be forced to downsize or close altogether, and export-focused businesses lose market share to international competitors.”

And despite likely increased federal non-military spending to provide a direct boost to the economy, REMI found the negative impacts “dominate” in the end in Arizona.

Stephen Moore, the Committee to Unleash Prosperity’s co-founder, calls the proposed federal legislation a tax scheme that is “an assault on the American tradition of family-owned and operated businesses being passed on” from one generation to the next.

“Many families will literally have to sell the farm to pay the Biden taxes,” Moore said. “The damage to jobs and the economy would be multiple times larger than any revenue gained for the government from this unfair tax proposal.”