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When looking at the income of the more affluent in this country,
we must always include income from capital gains because that, as you will learn, is a major source of income for the wealthy.
Let us take a look at who is who. Where do you fit? Where does your family fit?
2007 AVERAGE INCOMES BY GROUP 2007* | | |
1 | 2 | 3
| 4 | | | | Total | Average | Total Group | | | % of Population | Families | Income | Income | | | | | | | | | Total Population | 149,875,000 | $58,056 | $8,701,143,000,00 | | | | | | | | | 1 Bottom 90 % | 134,887,500 | $32,421 | $4,373,187,637,500 | | 2 | | | | | 3 Top .01% | 14,998 | $35,042,705 | $525,570,489,590 | | 4 Top
.1% | 134,888 | $4,024,583 | $542,867,951,704 | | 5
Top .5% | 599,500 | $1,021,643 | $612,474,978,500 | | 6
Top 1% | 749,375 | $486,395 | $364,492,253,125 | | 7
Top 5% | 5,995,000 | $220,105 | $1,319,529,475,000 | | 8
Top 10% | 7,493,750 | $128,560 | $963,396,500,000 | | 9 | | | | | 10 Total Top 10% | | | $4,328,331,647,919 | | | | | | | | | | | | | | |
* Information released by the IRS in 2009 Understand
the table: The first col. contains the various
percentages of the population who fit in a specific category; 2nd col. Contains total number of families in a specific
category; 3rd col. Contains the average income for that group of families; the final col. contains the total income
for that group of families. EXAMPLE: Line 1 shows the total number of families in the bottom 90% of
families being 134,887,500; their average income is $32,421 and their combined total income is $4,373,187,637,500.
Line 6shows the total number of families in the top 1% as 749,375 with an average income of $486,395 and a total as
a group of $364,492,253,125. These numbers represent 2007; incomes of the top 10% have increased substantially
since then while the incomes of the bottom 90% have gone down. You will see that later in this web site.
This chart shows (COL
3, LINE 1) the 2007 average income for a family in the bottom 90% was $32,421.00. The incomes for the top 10% was $128,560.00;
for the top 1% it was $486,395.00; and for the very top it was $35,042,705.00.
You should also note the total income
for the top 10% (Line 10) is just about the same as the total income of the bottom 90% (Line 1)!!! More recent estimates indicate the top 10% is actually greater than the bottom
90%.
Before I go any further, let me clarify
one thing! I am not a socialist
or an advocate of major income redistribution!
That is not the American way! However, I am for a level and even playing field. That, my reader, no longer exists.
The chart below (Chart 1) shows the change
in family income for the period 1947 thru 1979; I repeat 1947 – 1979! It is particularly important to note the
constant and fairly even increase in income over the entire period for all groups.
| CHART 1 |
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This next
chart (Chart 2 below) shows the change in family income from 1979-2005; I repeat from 1979 to 2005; not 1947-1979! Note
the drastic change over this period compared to the previous 32 year period from 1947-1979! As you can see, family
income stopped growing for most of the families but not the top group! That is what I mean about income
inequality!
| CHART 2 |
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Notice how the bottom 20% of wage earners lost 1% of their income over this period.
(That is what is known as going backwards!) Notice also the income of the bottom 80% went up by an average of 12% while
the top 20% went up went up by 53%!
As can readily be seen, the higher income
groups advanced significantly faster than the lower groups with the top group advancing by 81% over the time period.
That
is a very disturbing trend! Now, consider the fact that actual measured productivity went up significantly during this
period. This means the added productivity, of the lower paid people, was not rewarded; instead, the results of this
productivity went to the top earners!
Look
at each group (in Chart 2) including whichever group you are in. Interesting how the people, in the top 5%, are 81%
better off in 2005 than they were in 1979. The people in the top 20% are
53% better off. The people at the bottom 20% are 1% worse off!
The people, who need it the most, are
the worse off, over this entire time period!!! Nice job guys!
The real point being made here
is the trend! This is the same trend you saw with the corporate executives! The income and wealth of the people
at the top is accelerating while everyone else is going in the other direction!
Now we will take a look at the same groups
but this time we will look at the "After Tax" numbers. Take a look at Chart 3.
Chart 2 showed the top 5% of the
people were 81% better off in family income than the bottom 95%. Chart 3 shows this same 5% is actually
106% better of on an after-tax basis!!
xx
| CHART 3 |
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Look at our friends in the top 1%!! They are 176%
better off on an After-Tax basis!
NOW YOU KNOW WHAT SPECIAL TAX BREAKS MEAN WHEN YOU HEAR THIS FROM PRESIDENT OBAMA.
YOU ALSO NOW KNOW WHY REPUBLICANS SCREAM BLOODY MURDER AND LIE TO YOU ABOUT SOMEONE RAISING TAXES.
YOU BET SOME TAXES SHOULD BE RAISED
BUT THEY WON'T BE THOSE OF THE WORKING PEOPLE!
What you just looked at are the results
of the "Bush Tax Cuts". I will have more to say about this in the section labeled ‘TAXES”.
This is where the rich will say we pay
the most taxes; one study says the top 1% pays 37% of the taxes; the top 10% pays 68% of the taxes. This may be true,
but now is the time to stop with the percentages and look at real numbers.
If you are rich and earn $15,000,000
a year and you pay tax at a rate of 35%, you pay $5,250,000 in taxes leaving you $9,750,000 to live on. Gee, can
you pay the rent?
Now, if you are not rich and earn $40,000
a year and pay tax at a 5% rate, you pay $2,000 in taxes leaving you $38,000 to live on. That $2,000 in taxes, in real
numbers, has a much larger impact on you than the $5,250,000 would ever have on the rich person I mentioned earlier.
Any rich person who has an issue with
this, I invite you to live on $38,000. That would not even pay your country club dues!
Now stop with the socialist
and redistribution of income crap!
Chart 1 showed a relatively
level increase rate for all groups during the period 1947 to 1979; Chart 2 showed the
sudden spike in income for the top level groups from 1979 to 2005 and it continues today!. THAT DOES NOT REPRESENT AN EVEN PLAYING FIELD!
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You can see this clearly when you look at the percent of income
going to the top 1% from 1928 to 2005 in Chart 4 below. You can see that 21.8% of all income went to the top 1%!
Of all the income earned in this country, the top 1% of the people, in 2005, took 21.8% of all income!
 You really need to ponder this for just a minute.
Imagine if there was a total population in this country of 100 people. Also imagine those 100 people had
a total income of $1,000 combined.
One of those people would take $218.00 with the remaining $782.00 going to the remaining 99 people. That was just the top 1%; By the time the other top 4% of the
people took their piece, the remaining 95% of the people would be left with a very small amount to share!
You have heard of the middle class disappearing.
I wonder why? With income distribution, as it is done now, there will simply be rich people and poor people. We
absolutely must stop this trend!
We must keep progressives in the government
for several years to reverse these trends. I don’t care what party they are in; I only care about how they view
this situation! Given the wealth and the power of the Republican Party, this will be a tough challenge.
The only thing we have is the ballot
box! This ends the discussion on income. What you have read in this section was not caused by some accident or fluke of
nature. This was caused by GREED!
Greed
from CEO’s sending our high paying jobs off shore; greed is behind the Wall Street fiasco
and the resulting financial crash; greed is why so much effort is made to
stop unions (can’t be having those working people with the ability to have something to say about their destiny), etc.
Seems to me you should now have
some idea of what is and has been going on in this country. You need to decide if this is what you want for yourself, your family, and your grandchildren.
Oh, I almost forgot. I
just mentioned the major efforts being expended to stop unions. I would like to send these comments to
my friends in the southern part of this country.
We know many companies have moved to
the south to avoid and defeat the unions in the north. We know the companies pay less but still pay reasonably
well.
My southern friends, you need to know
the pay you currently get is a result of the “union threat”. This has nothing to do with the
love the companies have for you or your county.
Yes, in some cases the county or the state gave them millions of dollars in incentives
to get them to move there. But keep in mind, when and if the “union threat” is no longer seen
as a potential problem, you should get ready for pay and benefit cuts.
It is only a matter
of time. If not pay cuts, etc., the company will simply close and move off-shore.
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