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Wed Mar 6, 2013, 08:17 PM

Ten Numbers the Rich Would Like Fudged

November 22, 2012 |

AlterNet / By Paul Bucheit


1. Only THREE PERCENT of the very rich are entrepreneurs.

According to both Marketwatch and economist Edward Wolff, over 90 percent of the assets owned by millionaires are held in a combination of low-risk investments (bonds and cash), personal business accounts, the stock market, and real estate. Only 3.6 percent of taxpayers in the top .1% were classified as entrepreneurs based on 2004 tax returns. A 2009 Kauffman Foundation study found that the great majority of entrepreneurs come from middle-class backgrounds, with less than 1 percent of all entrepreneurs coming from very rich or very poor backgrounds.

2. Only FOUR OUT OF 150 countries have more wealth inequality than us.

In a world listing compiled by a reputable research team (which nevertheless prompted double-checking), the U.S. has greater wealth inequality than every measured country in the world except for Namibia, Zimbabwe, Denmark, and Switzerland.

3. An amount equal to ONE-HALF the GDP is held untaxed overseas by rich Americans.

The Tax Justice Network estimated that between $21 and $32 trillion is hidden offshore, untaxed. With Americans making up 40% of the world's Ultra High Net Worth Individuals, that's $8 to $12 trillion in U.S. money stashed in far-off hiding places.

Based on a historical stock market return of 6%, up to $750 billion of income is lost to the U.S. every year, resulting in a tax loss of about $260 billion.

4. Corporations stopped paying HALF OF THEIR TAXES after the recession.

After paying an average of 22.5% from 1987 to 2008, corporations have paid an annual rate of 10% since. This represents a sudden $250 billion annual loss in taxes.

U.S. corporations have shown a pattern of tax reluctance for more than 50 years, despite building their businesses with American research and infrastructure. They've passed the responsibility on to their workers. For every dollar of workers' payroll tax paid in the 1950s, corporations paid three dollars. Now it's 22 cents.

The Rest: http://www.alternet.org/economy/ten-numbers-rich-would-fudged?paging=off

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Reply Ten Numbers the Rich Would Like Fudged (Original post)
MrScorpio Mar 2013 OP
Jackpine Radical Mar 2013 #1
dsc Mar 2013 #3
pampango Mar 2013 #4
LineNew Reply ^
Wilms Mar 2013 #2
phantom power Mar 2013 #5

Response to MrScorpio (Original post)

Wed Mar 6, 2013, 08:30 PM

1. I keep seeing Denmark on the list of countries with great wealth inequality.

That runs counter to what I had always thought to be true (i.e. that Denmark had a fairly even distribution of wealth, with no super-poor or super-rich). What gives? Anybody know?

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Response to Jackpine Radical (Reply #1)

Wed Mar 6, 2013, 11:34 PM

3. Denmark still owns Greenland

so maybe that has something to do with it.

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Response to Jackpine Radical (Reply #1)

Thu Mar 7, 2013, 06:59 AM

4. Denmark has among the best income equality. Not sure why wealth inequality would

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Response to MrScorpio (Original post)

Wed Mar 6, 2013, 10:35 PM

2. ^

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Response to MrScorpio (Original post)

Thu Mar 7, 2013, 05:37 PM

5. 6. Tax deductions for the rich could pay off 100 PERCENT of the deficit.

6. Tax deductions for the rich could pay off 100 PERCENT of the deficit.

Another stat that required a double-check. Based on research by the Tax Policy Center, tax deferrals and deductions and other forms of tax expenditures (tax subsidies from special deductions, exemptions, exclusions, credits, capital gains, and loopholes), which largely benefit the rich, are worth about 7.4% of the GDP, or about $1.1 trillion.

Other sources have estimated that about two-thirds of the annual $850 billion in tax expenditures goes to the top quintile of taxpayers.

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