Preserve Our Middle Class

The pressing issue of congressional inaction is having a severe and immediate impact on middle-class Americans. This inaction is not only threatening their financial security but also perpetuating economic inequality and limiting their access to essential services. Families are bearing the brunt of these harmful or non-existent federal policies, and the time for action is now.

They include, but are not limited to:

• Economic Inequality – Where tax cuts have disproportionately favored the wealthy and big corporations, especially those tax cuts related to the Tax Cuts and Jobs Act of 2017, which did not work as sold to the American public.  The Act widened the income gap in the United States. The progressive nature of the tax system placed a heavier burden on middle-class families, which increased after-tax income for the wealthiest. Wage stagnation has also left many middle-class wage earners with fewer take-home dollars than they received decades ago. The minimum wage has not kept pace with inflation even though productivity has increased over the same time, making income inequality even worse for American middle-class families.

• The Burden of Healthcare Costs – This has become unbearable for many middle-class families. Higher premiums, out-of-pocket expenses, and the unavailability of subsidies under the Affordable Care Act have left these families in a precarious financial situation. The repeated attempts to repeal or undermine the Act have only added to the uncertainty and instability in the health insurance markets. The lack of regulation on pharmaceutical prices and the unchecked power of the insurance industry has led to exorbitant costs for prescription medications, further squeezing middle-class families who do not qualify for assistance.

• Retirement Security – Ill-advised proposals to cut funding for drastically restructuring Social Security and Medicare needlessly threaten the retirement security of middle-class Americans who rely on these programs that they have into for decades. Delays in addressing the long-term solvency of these programs are essential but not at the expense of future retirees. The weakening of pension protections and a dramatic shift from defined benefit plans to defined contribution plans, like 401(k)s, has transferred investment risk to individuals, many of whom are not equipped to be knowledgeable to manage those plans themselves.

• Housing Affordability – Skyrocketing prices are plaguing many areas of Florida and our nation because of woefully deficient affordable housing policies that predictably lead to housing shortages. Middle-class families have been priced out of home ownership or forced to allocate a significant portion of their income to housing costs. Changes to mortgage interest deduction policies have had mixed impacts, often favoring wealthier homeowners while providing less benefit to middle-class families.

• Education and Student Debt - Cuts to federal funding for higher education have driven up tuition costs, leading to higher student debt burdens. The higher-than-inflation rising cost of college education has disproportionately impacted middle-class families who do not qualify for significant financial aid but cannot afford to pay out of pocket for the tuition, room and board, and fees. Insufficient congressional support for student loan forgiveness programs and income-driven repayment plans has left many graduates from middle-class families struggling with debt long after entering the workforce, limiting their ability to save, invest, and live their best lives.

• Underinvestment in Infrastructure and Public Services – Chronic, long-term underinvestment by Congress in our infrastructure has disproportionately impacted those middle-class families who rely on public services such as transportation, education, and healthcare more so than wealthy Americans.

As you can see, bad congressional policies have had a range of negative impacts on the middle class, affecting their economic stability, access to essential services, and overall quality of life. Policies that disproportionately benefit the wealthy, coupled with underinvestment in public goods and insufficient regulation of key industries, have exacerbated economic inequality and made it more difficult for the middle class to achieve financial security and upward mobility.

To better preserve America's vanishing middle class, I will push the Senate and House to pursue various initiatives across various sectors, including economic policy, education, healthcare, and housing. Here are some suggestions for you to consider:

• Economic Policy Changes – At the very least, we need to improve our current progressive tax system to reduce the burden on the middle class while ensuring that the wealthy pay a fair share, whether they are individuals or corporations. This can be done by offering sufficient tax credits for middle-class families, such as expanding the Earned Income Tax Credit and the Child Tax Credit. Our tax code should also index the minimum wage to inflation to ensure that a minimum wage keeps pace with rising standard-of-living costs. We must enforce anti-trust laws to prevent monopolies and promote fair competition in the market. That said, I prefer to replace our current progressive tax system with a fair, flat tax that would equalize the taxes individuals pay regardless of class, as well as corporations big and small that are earning revenue. See my proposal for a fair, flat tax.

• Job Creation and Infrastructure Investment and Job Creation: More aggressively invested in large-scale and medium-scale infrastructure projects will create jobs and stimulate economic growth in many sectors of our economy.  What benefits one will benefit all if we structure this investment appropriately? Supporting the development of rational, reasonable green energy and technology sectors will also create high-paying, sustainable jobs.  Legislating innovative initiatives will also help generate jobs at much higher pay levels. See my proposal for a Medical Innovation Zone and my proposal for the American Transformational Innovation Trust.

• Strengthening Social Security and Retirement Programs – Better protection and expansion of Social Security benefits will ensure a more secure retirement for middle-more employer-sponsored retirement savings plans and incentives for contributions. See my news release on prohibiting cuts to our Social Security and Medicare Cuts.

• Access to Affordable Healthcare—By expanding middle-class access to affordable healthcare by enhancing the Affordable Care Act, we can make healthcare more cost-beneficial to those who need it, whether in a rural or urban center. Prescription drug prices can be lowered even further by allowing Medicare to negotiate more aggressively directly with pharmaceutical and insurance companies alike. See my proposal on healthcare.

• Housing Initiatives:  Affordable housing can be increased by providing funding and incentives for developers to build affordable workforce housing units. Low- and middle-income families will be able to secure stable housing with strengthened housing assistance programs, such as Section 8, as well as a three percent interest loan rate for first-time homeowners. Enhanced tenant protections to prevent unfair evictions and rent hikes would also help.

• More Affordable Education and Training - Increasing funding for public universities, community colleges, and trade schools to reduce tuition costs and offset the costs of books and other fees will help middle-class Americans immeasurably. I would like to see more job training through partnerships with the private sector, where possible. More affordable education and training can be helped by expanding access to Pell Grants and creating more need-based scholarships.

• Rural and Urban Development Investments – We must provide equal priority among our rural and urban communities. For example, rural economic development can be enhanced by offering grants and incentives for businesses and the philanthropic sector to invest in rural areas by expanding broadband access, for example, to ensure rural communities are connected and can participate in the digital economy locally, nationally, and globally. Investment in urban renewal projects will revitalize our struggling cities and neighborhoods, which can be done, for example, by supporting small businesses and entrepreneurship in urban areas through grants and low-interest loans. See my proposal on helping rural communities.

• Environmental Policy Adjustments—I am not a big fan of the Green New Deal because of the extremes it goes to. But I do like some elements of it, such as investing in reasonable renewable energy and green technology sources to create new jobs and reduce reliance on fossil fuels. Supporting programs that will help workers transition from fossil fuel industries to green energy jobs would be a plus. See my proposal for energy and the environment.

Congress can help stabilize and grow the American middle class, ensuring economic opportunities and security for all citizens, by pursuing any or all combinations of these initiatives designed to preserve our vanishing middle class - the backbone of the American economy.