Top 1% income grew at 275% 1979-2007

Discussion in 'Economy' started by Wiseacre, Oct 26, 2011.

  1. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Hard to believe the left isn't all over this.

    snippet:

    The income of the richest 1 percent in the U.S. soared 275 percent from 1979 to 2007, but the bottom 20 percent grew by just 18 percent, new government data shows.

    The Congressional Budget Office (CBO) released a study this week that compared real after-tax household income between 1979 and 2007, which were both after recessions and had similar overall economic activity.

    While the income of the richest 1 percent nearly tripled, increases were smaller down the economic ladder. After the 1 percent, income for the next highest 20 percent grew by 65 percent, much faster than it did for the remaining 80 percent of the population but still lagging well behind the top percentile.


    another snippet:

    The "equalizing effect" of transfer payments and federal taxes on household income was smaller in 2007 than it had been in 1979, according to the CBO, sparking controversy in the debate over whether to increase taxes on the rich.

    In 1979, households in the bottom quintile received more than 50 percent of transfer payments. In 2007, similar households received about 35 percent of transfers. Meanwhile over that period, the overall average federal tax rate fell slightly, the composition of federal revenues shifted away from progressive income taxes to less-progressive payroll taxes, and income taxes became slightly more concentrated at the higher end of the income scale.

    "The effect of the first two factors outweighed the effect of the third, reducing the extent to which taxes lessened the dispersion of household income," Douglas Elmendorf, CBO director, wrote on the CBO website.

    Income More Than Doubles for Top 1 Percent From 1979 - ABC News


    The question is what to do about it. Raising taxes on the rich is not going to be the answer, although the democrats would have you believe otherwise.

    PS: Please see my thread about well-being of the middle and lower income classes in this forum.
     
    Last edited: Oct 26, 2011
  2. Brutus
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    Brutus Senior Member

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    but why is that important? It seems to me welfare transfer payments should provide someone with a subsistence standard of living at most. If instead, you try to "equalize" the poor with the rich the poor will get further and further above a subsistence standard of living as the ecomomy grows and so have less and less incentive to work. Do we really want that?
     
    Last edited: Oct 26, 2011
  3. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Therein lies a part of the argument for or against redistribution of wealth. I started another thread about how the middle and lower income folks are actually not as disadvantaged as the income inequality gap might suggest. Take a look if you have the time and inclination.

    I would agree with you that there is a disincentive to work if you make unemployment comfortable enough.
     
  4. expat_panama
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    expat_panama Silver Member

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    OH NO --THIS IS TERRIBLE!!!!
     
  5. rdean
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    rdean rddean

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    The right wingnuts think it's because these people "work harder". Buying up Republican politicians, the best money can buy, and changing the rules has nothing to do with it.
     
  6. JimH52
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    JimH52 Gold Member

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    RONNIE REAGAN'S PLAN IS WORKING WELL!

    Updated CBO data reveal unprecedented increase in inequality | Economic Policy Institute

     
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  7. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    So you think democrat politicians are without sin? You think they're any different from the repubs? Rs and Ds from coal states will unite to fight lower subsidies against coal, Rs and Ds from the farm states will fight for more tax breaks and advantages for big farms, and so on. Pols from either side of the aisle are guilty, let's not pretend one side is clean or less guilty than the other.
     
  8. Brutus
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    Brutus Senior Member

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    especially if the unemployed are taught they deserve a fixed and growing % of the ever growing money that Jobs Gates and Buffet et al. make.
     
  9. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    :lol:
     
  10. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    In China and India.
     

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