The disproportionate tax burden

[Tex]

Via Powerline:

Stephen Moore previews the most recent data in today's Wall Street Journal: "My contacts at the Treasury Department tell me that for the first time in decades, and perhaps ever, the richest 1% of tax filers will have paid more than 40% of the income tax burden. The top 50% will account for 97% of all federal income taxes, while the bottom 50% will have paid just 3%." Moore's preview does not include the companion income data.

The main reason Obama wants to raise taxes on the rich is because no one else is even paying them.

Oh, and if you pay taxes ... you're rich. Go figure.

http://www.powerlineblog.com/archive.../07/020953.php

[MikeWaters]

Why do the rich keep getting richer, and the middle class is stagnant? Because of market forces, or because of a system set up by the govt. that rewards the already rich?

[ERCougar]

Originally Posted by MikeWaters

Why do the rich keep getting richer, and the middle class is stagnant? Because of market forces, or because of a system set up by the govt. that rewards the already rich?

I'm curious--how does the tax code reward the rich? What other aspects of the "system set up by the govt." are you talking about?

[MikeWaters]

I've heard that society is becoming increasingly disparate between the haves and have nots, and that the middle class real income is completely stagnant, while the rich are growing in income leaps and bounds.

My question is "why now"?

[Indy Coug]

Originally Posted by MikeWaters

Why do the rich keep getting richer, and the middle class is stagnant? Because of market forces, or because of a system set up by the govt. that rewards the already rich?

Simple. Compound interest. Assume a 3% across-the-board cost of living increase regardless of salary level.

2001: A makes $25K, B makes $250K; a difference of $225K
2020: A makes $45,150, B makes $451,500; a difference of $406,350

Furthermore, the rich have a better understanding of money management and more disposable income to invest in more aggressive portfolios that yield a higher rate of return.

[MikeWaters]

Just as an aside, the salary for my job where I work has been stagnant for about 10 years I believe.

Every year, we are poorer. (eventually you get promoted to another higher benchline, and get poorer every year after that because of no COL increases).

Interestingly, the VA is looking to hire A LOT of psychiatrists because of the huge number of mentally ill soldiers returning from overseas. From my vantage point, a tough sell became even tougher. I don't think they have raised their pay, and they are expecting guys to come it at 50-65% of private practice salary. And they wonder why positions are unfilled.

[landpoke]

Originally Posted by MikeWaters

I've heard that society is becoming increasingly disparate between the haves and have nots, and that the middle class real income is completely stagnant, while the rich are growing in income leaps and bounds.

My question is "why now"?

Because we're moving from republic to empire. Much like the ever warming and cooling earth it's a natural process and nothing to be alarmed about.

[Indy Coug]

Originally Posted by MikeWaters

Just as an aside, the salary for my job where I work has been stagnant for about 10 years I believe.

Every year, we are poorer. (eventually you get promoted to another higher benchline, and get poorer every year after that because of no COL increases).

Interestingly, the VA is looking to hire A LOT of psychiatrists because of the huge number of mentally ill soldiers returning from overseas. From my vantage point, a tough sell became even tougher. I don't think they have raised their pay, and they are expecting guys to come it at 50-65% of private practice salary. And they wonder why positions are unfilled.

At some point, supply and demand is bound to work in your favor.

[MikeWaters]

Originally Posted by Indy Coug

At some point, supply and demand is bound to work in your favor.

I agree.

Look at this, it's even worse than I thought. VAs trying to hire psychiatrists at 93k a year.

http://jobsearch.usajobs.gov/jobsear...q=Psychiatrist

[Tex]

Originally Posted by Adam

This is really simple. Income disparity is increasing. The rich are getting so much richer then everyone else that the share of tax they pay is proportionally going up.

This is not a good thing for America.

I don't believe it.

What it does illustrate, however, is that one reason the bottom 50% don't get a lot of tax relief is because they aren't paying any to begin with. This is why we disguise welfare in the form of "tax credits" these days (EITC).