If the uneven prosperity chart included capital gains, It would be even more stunning.
People making 300-500K are rich in my view.
In Denmark we have something we call toptax in our progressive system. Its around the 81K$ mark and alot of people pay toptax to put it mildly. But its not the big issue as you portrait it. Because you have to remember that for the entire income below, you dont pay it. So the effective taxrate aint changed much until you start to essentially earn ridicious amount of money.
Also how many american families even earn above 250K? Not that many.
Back in the 40s and 50s and early 60s. the US tax system actually had a system against money hoarding and the crazy wages. There was up to some 90% top tax. The economy in the US was blooming back then. After it was removed, what happend? Downturn and a more unequal society started to emerge. managers and directors etc increased the wage differences between themselves and the employees with over 30x. Everytime that happens its the man on the floor that loses. the result today is that 400 americans sit on the same wealth as the rest of the 300million. That means they are 750000 times more wealthy than the average of the rest. And its destroying the economy and society.
The same applies for corporate money hoarding that aint released into productive investments. Apples huge cashpile for example is invested in a hedgefund that is directly damaging to regular people.
Another example would be this, 2000 to 2006 was a booming time. Yet barely any americans benefitted from it. However those that did really took their slice of the cake.
Screw that, my wife and I earned less than half of $150K last year (when we were living in manhattan of all places) and we paid a higher overall rate than Mitt, and that's the rate he owned up to! (18% vs 14%) And he can still amend his return, who the hell knows how much he's actually taking home. To say nothing of how much income he actually has to report, I don't have accounts in the caymans.It's also regressive wrt tippy-top filers, because of the flat 15% rate on investment income. A person working for $150K/yr can pay a higher tax rate than somebody earning $15M/yr. Witness Mitt.
People making 300-500K are rich in my view.
In Denmark we have something we call toptax in our progressive system. Its around the 81K$ mark and alot of people pay toptax to put it mildly. But its not the big issue as you portrait it. Because you have to remember that for the entire income below, you dont pay it. So the effective taxrate aint changed much until you start to essentially earn ridicious amount of money.
Also how many american families even earn above 250K? Not that many.
Back in the 40s and 50s and early 60s. the US tax system actually had a system against money hoarding and the crazy wages. There was up to some 90% top tax. The economy in the US was blooming back then. After it was removed, what happend? Downturn and a more unequal society started to emerge. managers and directors etc increased the wage differences between themselves and the employees with over 30x. Everytime that happens its the man on the floor that loses. the result today is that 400 americans sit on the same wealth as the rest of the 300million. That means they are 750000 times more wealthy than the average of the rest. And its destroying the economy and society.
The same applies for corporate money hoarding that aint released into productive investments. Apples huge cashpile for example is invested in a hedgefund that is directly damaging to regular people.
Another example would be this, 2000 to 2006 was a booming time. Yet barely any americans benefitted from it. However those that did really took their slice of the cake.
First off, everyone needs to know that taxes will be raised under two circumstances in 2013 regardless of what happens with the fiscal cliff:
1) Medical FSA contribution limits were reduced from $5K annually, to $2,500. So, it doesn't matter how much money you make, if you were contributing above $2,500 in 2012, you will be hit with higher taxes in 2013 because of the reduced amount you can contribute.
2) A medicare surcharge of 0.9% for all income over $200K.
Both of these are a result of Obamacare. Both effect people making less than $250K.
All the talk of tax rates is really irrelevant. The problem with our tax code has been the loop holes. And until they are addressed, the talk of taxes is really just fluff. The tax loop holes, shelters, etc really is the problem. When a business or person who makes a million dollars, have an effective true tax rate in many cases less than 10%, there is a problem. I don't believe 250K makes a family rich though. I believe 350K or more puts a family or business in a different light. I also think the small business argument is a bunch of nonsense as well.
Your average person doesn't even know what an FSA is
I don't believe 250K makes a family rich though. I believe 350K or more puts a family or business in a different light. I also think the small business argument is a bunch of nonsense as well.
And there lies one of the greatest brainwashing tricks the 400 super rich (including the mega corps since they are people too) have done to the rest of society , it's called he who makes more than me is rich ,
they keep your eyes on those making 300-500K like the contractor, landscaper, grocery store, etc. that employees several people along with equipment and facilities, and off of them that derive most of their income from investments,
because in America we look at the small business owner and his business as one and the same and consider them rich so they should have no problem paying additional taxes and fee's because we are all taught that they just magically pass it on to the money flushed consumer who will gladly pay it.
It's those super rich that own congress and the president and lobby to create the laws that not only benefit themselves through all the magic loopholes that they can use but also through increased taxes and regulations that can hold back those 300- 500k that you consider rich from becoming their future competition.
1) If you throw a shit fit over paying tax on $2500 than you have issues.
My wife and I earned less than half of $150K last year (when we were living in manhattan of all places) and we paid a higher overall rate than Mitt, and that's the rate he owned up to!
I don't have accounts in the caymans.
Um, approximately six million workers have Flexible Spending Accounts. It was about 8 million when Obama took office, but he's been chipping away at it, plus with fewer jobs there are fewer FSAs and some with FSAs have been cut back to lesser insurance. Still, six million American workers is nothing to sneeze at. My own small company has Health Savings Accounts, a cheaper version of FSAs but one where my contributions don't disappear at the end of the year. Obamacare raised my deductible from $2,400 to $3,400 in one year. This is all part of driving primary private insurance out of existence so that we can all enjoy being on Medicaid/Medicare.
People making 300-500K are rich in my view.
In Denmark we have ...
Back in the 40s and 50s and early 60s. the US tax system actually had a system against money hoarding and the crazy wages. There was up to some 90% top tax. The economy in the US was blooming back then. After it was removed, what happend? Downturn and a more unequal society started to emerge. managers and directors etc increased the wage differences between themselves and the employees with over 30x.
First off, everyone needs to know that taxes will be raised under two circumstances in 2013 regardless of what happens with the fiscal cliff:
1) Medical FSA contribution limits were reduced from $5K annually, to $2,500. So, it doesn't matter how much money you make, if you were contributing above $2,500 in 2012, you will be hit with higher taxes in 2013 because of the reduced amount you can contribute.
2) A medicare surcharge of 0.9% for all income over $200K.
Both of these are a result of Obamacare. Both effect people making less than $250K.
1. Income above $200,000 for an individual is hardly middle class. It is very well off.
2. You ignore payroll taxes
3. You ignore the fact that the very rich mostly earn through investment, so they pay the reduced rates for cap gains and dividends.
Water carrier..