The 90 percent are better off.

[snoopy369]

I'd be a bit concerned about selection bias in a study done during a high-unemployment period. Assuming you define the top 10% based on current (this year) income, you have all of the unemployed folks in the bottom 90%; do this study ending in 2007 and you have a very different result (ie, gribbler's graph). The top 10% may well be hurt as well - but those that are hurt are dropping out of the top 10%, being replaced by people who aren't being affected by the downturn (and perhaps are benefiting from it, in those sectors that are doing better). Add to that the fact that inflation has basically stopped due to the recession, and you have a scenario where the top 10% look better versus the bottom 90% (or the bottom any %).

My general feeling is that economic inequality does exist and is somewhat of a problem, but is not the problem that the MrFun types make it out to be - that's more like the complaints of the French in the 1780s.

My personal vote to deal with it is the estate tax - keep the 5MM exemption, but then 80% tax above that, and close most/all trust exemptions (so you don't have "trust fund babies"; maybe include a few specific reasons trusts can exist that are nontaxed, with fairly low limits, but otherwise nothing). That would never pass Congress, of course ("Death Tax" yadda yadda) but seems like a very fair way of ensuring you tax the "wealthy" without causing economic disruptions.

[Ben Kenobi]

The reason for the gross inequity in income is not because of who is working harder than others.

Ahh. I see. So the people who are working harder have the right to steal from other people.

[Japher]

I am against Estate Tax so far is it is with current other taxes the way they are. The problem isn't 1 tax it's the lot of them. I think people should be able to build and transfer wealth with as little government interferance as possible.
That said, I also think that people who are better at doing this also have a civic duty, and if they aren't serving as contributing members to society, or hoarding equity instead of using it, then maybe they should be incentivised to do so. And, when such incentives stop working should be required to do so.

Thus, if a flat tax could be agree on I would be more in favor of estate taxes and possibly even wealth taxes, so long as wealth doesn't equate to equity, or any other asset, that is contributing to the gdp in some way.

[PLATO]

My personal vote to deal with it is the estate tax - keep the 5MM exemption, but then 80% tax above that, and close most/all trust exemptions (so you don't have "trust fund babies"; maybe include a few specific reasons trusts can exist that are nontaxed, with fairly low limits, but otherwise nothing). That would never pass Congress, of course ("Death Tax" yadda yadda) but seems like a very fair way of ensuring you tax the "wealthy" without causing economic disruptions.

The problem with Estate tax is not income, it is assets. Many smaller companies management is tied up in family. A lot of those companies would not survive that type of estate tax.

I believe that the income disparity that we see right now is a much bigger problem than many think it is. While the administration is trying to address the lower end through minimum wage hikes, I believe that the problem lies more in a deteriorating middle class. That speaks to many different problems though that have little or nothing to do with tax policy.

[PLATO]

Ahh. I see. So the people who are working harder have the right to steal from other people.

Yeah Ben, you got it. Thanks for the analysis.

[Sava]

Jesus wants you to pay taxes.

Romans 13:5-7:

"Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also because of conscience. This is also why you pay taxes, for the authorities are God's servants, who give their full time to governing. Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor."

[Japher]

Render onto Ceasar what is Ceasars.

More oft quoted Jesus saying to support paying taxes.

[Fake Boris]

Zylka

[Aeson]

I make a lot more now than I did 40 years ago ...

[Sava]

The problem with Estate tax is not income, it is assets. Many smaller companies management is tied up in family. A lot of those companies would not survive that type of estate tax.

I believe that the income disparity that we see right now is a much bigger problem than many think it is. While the administration is trying to address the lower end through minimum wage hikes, I believe that the problem lies more in a deteriorating middle class. That speaks to many different problems though that have little or nothing to do with tax policy.

I never understood how the "death tax" jived with the whole Republican "WORK IN THE COAL MINES UNTIL YOU DIE" ethic. Yeah... poor people need to work. But Douchey McVanderhoffen should make millions just because Uncle Crotcheypants dies?

**** that
**** them

[giblets]

I never understood how the "death tax" jived with the whole Republican "WORK IN THE COAL MINES UNTIL YOU DIE" ethic. Yeah... poor people need to work. But Douchey McVanderhoffen should make millions just because Uncle Crotcheypants dies?

**** that
**** them

How is that inconsistent exactly? If poor people didn't need to work, they wouldn't be poor people.

[Patroklos]

The average income for the 90 percent has grown by $59 over the past forty years.

Breaking out the 90% as if they are som homogenous group that are in any way similar in income growth or shrinkage is colossally stupid and given the obvious motive of the OP overtly dishonest.

[Jon Miller]

http://www.themoneyillusion.com/?p=21058#comments

Even Scott Sumner is saying that the key problem is not enough income is going to workers.

JM

[Jon Miller]

http://www.themoneyillusion.com/?p=21058#comments

Even Scott Sumner is saying that the key problem is not enough income is going to workers.

JM

[Aeson]

http://www.themoneyillusion.com/?p=21058#comments

Even Scott Sumner is saying that the key problem is not enough income is going to workers.