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Inequality Out of Control: The Average 1% Household Made Over $2.5 Million in the Past Year


#1

Inequality Out of Control: The Average 1% Household Made Over $2.5 Million in the Past Year

Paul Buchheit

"Inequality, like a malignant tumor, is growing out of control, and the only response from Congress is to make it even worse."


#2

It’s time to let “Them” Eat Brioche.


#3

Does anyone have a list or link to the individuals / corporations that make up the 1% - 5%?


#4

I heard that one feature of the new bill eliminates deductibility of SALT (State And Local Tax) payments, but for individuals only, and NOT corporations—another display of tone-deaf assymetry that should have us all up in arms.


#5

and the dems were control from 2009 thru 2016. no wonder they are loosing we the people.
Obama and dems are just republicans but throw a few crumbs at us.


#6

It can be argued that the Rs have placed themselves in a lose-lose scenario where this tax bill is concerned.

If it doesn’t pass, their base will turn on them.
If it does pass, Independents will turn on them.

Either way, the Ds can merrily jaunt along to fairly significant electoral wins in 2018 on their typical “We’re Not As Bad As Them” platform without reforming themselves one bit.


#7

Suggested edit

“[w]e may never _____ be an equitable and functional society.”


#8

Sounds a lot like double taxation, doesn’t it?


#9

What are the lower cutoff points for the upper 1%, the 5% and the 10%?


#10

Not only that, the woman who was interrogating one of the tax bill creators in a hearing made the point that not only did individuals not get credit for their state and local taxes while corporations did, the same thing applied to teachers who bought material for their students (corporations could write off stationary expenses but teachers couldn’t), and moving expenses when your employment required you to move. Businesses could write off moving expenses when they moved out of country, but individuals couldn’t write off moving expenses when their employers moved them around.


#11

Forbes magazine had an article saying that this tax bill is the biggest disaster to hit the American economy since forever. They showed that there is no reason to have a tax cut now because the economy is working well (employment, stock market, inflation, etc.). They also pointed out how the economy will go down the toilet when the various cuts are implemented.

When Forbes, the magazine of the uberrich, tells you your tax cuts are absurd, you know that they are beyond anything that a rational person would consider beneficial to the country. It’s almost as if the people pushing the tax cut bill want to destroy America.


#12

Notes on Buchheit on US inequality now

  1. Re detached rich that blame poor for their plight.
    Not clear that, as a class, rich have ever had a different view: inequality may have gotten “uglier”…but the class outlook of captains of industry and finance? As indifferent to suffering and democracy; and as right wing and prepared to deploy their power in US politics to advance their profits and class domination as ever…

  2. Re Congressional failure to democratically correct this - "inequality ripping us apart, and…few of our national leaders willing or able to confront the problem"
    Certainly - and I take this to be Buchheit’s point - Congress’s active role in serving the interests and power of the wealthy points to the failure of political democracy in the U.S. - and, also, the illegitimacy of U.S. political institutions.

But congressional failure is a symptom of oppositional failure - not just the failure of the Democratic Party, but the comparative weakness and failure of any social movement made up of the victims that could challenge the power of the right.

In other words, sure we must be angered by inequality and the politicians that increasingly enable it; but the work to be done is analyzing and - to the degree possible, remedying - the disengagement of the low income and poor masses that must act to overthrow the right.

  1. Re “we may never again be an equitable and functional society.” Why I’m encouraging my son to keep up his French studies and apply to McGill in a few years. No reason he should go go through life on a progressively rotting ship.

#13

We should tax financial wealth. We tax non-financial wealth, or real estate. The Tax Policy Center reported that last year $488 billion in property tax revenue was raised, and it went to state and local governments. I looked up the value of real estate assets, and apparently the tax rate is 1.52%. The Flow of Fund reports in 2016 non-financial assets were valued at $33.036 trillion. A 1.52% tax on the $78.280 trillion in financial assets would yield $1.2 trillion ($1.189 actually). This amounts to 41% of all federal tax revenues for 2017, and it equals 34% of all expenditures. The income tax yielded $1.476 trillion, the payroll taxes yielded $1.114 trillion. Total expenditures were around $3.44 trillion. — A 1.52% tax on financial assets would create such a surplus for the federal budget that only incomes above $200,000 would have to pay federal taxes, and there would be enough left over for a $200 billion jobs program. The U6 unemployment rate is 7.9%, but it’s 10,0% according to njfac.org, meaning 16.5 million are looking for full-time work. A $200 billion jobs program would employ between 3 and 4 million at $50,000 to $70,000 a year, total per-worker expense of the employment including materials and management. – A bit too much for a comment? Yes. I have a blog, Economics Without Greed, http://benL8.blogspot.com – It’s time for the left to look deeper into alternatives that would really improve life.


#14

How nice- steal jobs and get paid for it too!


#15

Well, unless they can “cure” pollution, terminal disease, and poverty and more, no one deserves that pay!


#16

According to this article, back in 2013 the 1% cutoff was an annual income of a little under $400k. It differentiates among states, which suggests the author has a different meaning of 1% than some readers (including me)

https://www.forbes.com/sites/laurengensler/2016/06/16/one-percent-by-state-income-inequality/#319b1f52be3a

I still hear a lot of talk that suggests that this income level is only “moderately wealthy” and is in the upper middle-class, rather than the upper class.


#17

I heard Paul Ryan on the floor urging representatives to vote for the bill because of the extremely sluggish recovery from 2008.

But since 2011 I’ve heard well-to-do people say how wonderful and speedy the recovery was and only acknowledge that a few people, particularly in rural regions, haven’t fully recovered.

Funny how your beliefs change when you want MORE MONEY!