AirCop
Topic Author
Posts: 5553
Joined: Mon Nov 28, 2005 2:39 am

Income Gap Is Widening

Fri Mar 30, 2007 9:18 am

Source: www.nytimes.com/2007/03/29/business/29tax.html?ei+5087%0A&em+&en+311ab
I know that this has been discussed before; but some comments from the article
-Income inequality grew significantly in 2005 with the top 1% (incomes over $348,000) receiving the largest share of the national income since 1928.
-From 2005 IRS records for the bottom 90% the average income dropped slightly compared to the year before, while the top 1% saw an increase of $139,000 or 14%. Apparently the top group increase rely heavily on the stock market and business profits for their income.
Discussing fairness: the IRS estimates that it is able to accurately tax 99% to the wage income, but that it captures only 70% of the business and investment income, which most goes to higher income individuals.
The Center on Budget and Policy Priorities (an advocacy group for the poor) claims that the middle class has had the basic same percentage of total income taken by taxes over the past 40 years, while the income taxes has fallen by half for those at the top although THEIR SHARE OF TOTAL INCOME TAX REVENUE HAS RISEN DESPITE THE CUTS.
Should be interesting when Congress gets around to debating whether to cancel/reversed/let expire the Bush tax cuts and whether it would slow investment and the cost to the economy.
 
Falcon84
Posts: 13775
Joined: Fri Sep 10, 2004 11:52 am

RE: Income Gap Is Widening

Fri Mar 30, 2007 12:39 pm

Quoting AirCop (Thread starter):
-From 2005 IRS records for the bottom 90% the average income dropped slightly compared to the year before, while the top 1% saw an increase of $139,000 or 14%.

Proving once again this "great economy" is really only great for those who already have. For most of the rest of us, it hasn't done anything.

Putting on my flame-retardant suit, waiting for the backlash from the right. But, in truth, I really don't give a damn when they start firing away.
Work Right, Fly Hard
 
CaptOveur
Posts: 6064
Joined: Thu May 06, 2004 3:13 am

RE: Income Gap Is Widening

Fri Mar 30, 2007 2:46 pm

Quoting Falcon84 (Reply 1):
But, in truth, I really don't give a damn when they start firing away.

Then why did you say that?

Quoting AirCop (Thread starter):
-From 2005 IRS records for the bottom 90% the average income dropped slightly compared to the year before, while the top 1% saw an increase of $139,000 or 14%. Apparently the top group increase rely heavily on the stock market and business profits for their income.

And in a couple more months the top 1% will probably see a 28% or greater drop. So the bottom of the taxpaying barrel saw a slight drop, they will probably see a slight rise in the future. One year, or even 5 years of data really doesn't tell anyone anything. Except it is something for Falcon and a few others to whine about, and that is always important. Fact is we are still on an up trend. I wouldn't call myself rich, in fact with my income I am probably closer to poor. I don't have any complaints about my earnings that the federal government could do anything about.
Things were better when it was two guys in a dorm room.
 
Molykote
Posts: 1239
Joined: Tue Aug 23, 2005 8:21 pm

RE: Income Gap Is Widening

Sat Mar 31, 2007 12:13 am

Quoting Falcon84 (Reply 1):
Proving once again this "great economy" is really only great for those who already have. For most of the rest of us, it hasn't done anything.

In my opinion, the "great economy" is really only for those who are willing to take the initiative and make something of it for themselves. Anyone who is relying upon the "metrics" of an economy (particularly the short/present term status of an economy) to make their own for the long term is foolish (or are in a position where they must gamble to make up for past mistakes).

Most employees who blindly followed the tech boom's lucrative "rising tide" in the late 1990s are probably a little bitter (while those who entered the field with foresight and determination are probably doing OK as a group - or at least much better than the lemmings who thought it was an easy meal ticket). This can apply to any industy but I seem to remember another user blaming the Bush economy for what he believed was mediocre compensation for a tech job.

Flame me if you like. I'll even get you started:

"You're not compassionate."

"You're only 24 - Come back when you get some life experience."
Speedtape - The aspirin of aviation!
 
Pope
Posts: 3995
Joined: Thu Mar 24, 2005 5:57 am

RE: Income Gap Is Widening

Sat Mar 31, 2007 1:15 am

Quoting Falcon84 (Reply 1):
Proving once again this "great economy" is really only great for those who already have. For most of the rest of us, it hasn't done anything.

Again, your response demonstrates that you lack even the most basic understanding of risk based returns that operate in a free market. The returns generated by the two income groups are incomparable at this level because they ignore the relative risks that each group takes.

If somebody asked you would you like the opportunity to double your money and you said yes without knowing more you'd be a fool because you would have no understanding of what risk you were undertaking. Similarly, to say that a group saw their income rise by X% without a discussion of what risks they assumed is simply stupid.

Why does the casino pay more when you bet on a specific number in roulette than they pay when you bet on black or red? Because the risk of loosing your money is greater when you bet on the particular number (1 in 37/38) versus when you bet on black or red (almost 50% depending on whether the wheel has just a 0 or 00 position).

You sit here and rant about the rich getting richer but you say nothing about the entreprenurial risks they take. As we've seen the stock market is very volatile. If you put your money into it, you may not get all of it back. Therefore, why shouldn't they earn a premium return for assuming greater risks?

You want your cake and to eat it too. You want the security of a regular paycheck and the return that comes with heightened risk. I'll speak for myself. Last year I earned in the mid 6 figures, but only $70,000 of that was guaranteed. The rest is purely a result of performance and the risks I took in structuring a compensation package that was based on enterprise performance. Let me tell you what, it was great last year but 3 years ago it sucked when almost everyone else at my company earned more than I did. No guts no glory.

Stop feeling sorry for yourself and go out into the world and sake your claim. This country is filled with people who started with nothing and have made themselves rich beyond their wildest dreams. If they can do it, why can't you?
Hypocrisy. It's the new black for liberals.

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