Yes, you've got me here! The average number of persons in a household decreased in the past 30 years from 2.8 to 2.5. Wow, it sure would explain why the incomes of the top 1% grew 40 times faster than in the median.
Or may be not?
So where can we see that individual income data?
The keyword here is of course "partially".
I have no problem with the rich earning more than the poor. The issue is that inequality is rising over time -- and as that trend continues, what will become of this country?
No, they not -- and that is the reason for taxing the rich more. We cannot all be CEO, someone has to clean the toilets too. And CEO should take home much more than a janitor so talented people have the incentives to advance their careers. But when CEO is bringing home 500 times more than a plumber, that is just ridiculous.
Tell me a single reason why setting 70% marginal tax rate for the rich is NOT the best way to pay for Medicare or social security, or defense?
1. "The issue is that inequality...."
No it isn't.
What someone else earns is
none of your darn business.
Yes it is, as long as we have income taxes.
When I find it -- till then I have to rely on household census data, that shows inequality rising rapidly in the past 30 years.
That is a total BS, and you know it. A janitor can work himself do death 24/7, and he still will be making hundreds times less than a CEO. The kind of services you offer matters.
And what will happen if a few skilled workers begin to earn 99.9999% of nations income -- because the free market values their services that much? I'm not saying this will ever happen, but we are going that way in the past 30 years.
The definition of productivity is the value the market puts on one's services. If your services are in demand, then your productivity is high and you earn a lot of money -- but it does not mean you are working harder than everyone else. It means you were lucky to be born with that particular talent.
It does not explain why the incomes of the top 1% were growing 40 times faster than in the middle.
The difference in income does not reflect inequality, but rather, productivity.
That is the problem -- we should reward the hard work, not so much the talent one had born with, or his/her luck. Simply because we can't all become CEOs! Even if we all can master the skills -- someone has to vacuum floors.
4. But...if you want to fight 'inequality,' here's some:
The top 1% earn 17% of the money.... but pay 38% of the taxes.....
How come you're not incensed over that????
Because it is not enough -- top earners have to pay about 70% in income taxes, so low income earners can pay less. Because we only need enough inequality to keep people motivated.