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hfojvt

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Gender: Do not display
Hometown: South - Carolina and Dakota
Home country: Oz
Current location: Kansas
Member since: Mon Nov 15, 2004, 03:30 AM
Number of posts: 34,259

Journal Archives

THE Database

of income inequality, for those few who might be interested

http://topincomes.g-mond.parisschoolofeconomics.eu/#Database:

As a public service, your humble janitor has compiled and tabled some numbers, for some groups, every five years (both to eliminate the ups and downs of single years AND to avoid a mind-numbing endless row of numbers.

Cleans things up a bit. That's the janitor way.


Share of income going to various groups.



year *** 90-95th *** top 4% *** top 1% *** top 5% *** top 10%
___________________________________________________

1960 *** 10.9 *** 12.54 *** 10.03 *** 22.57 *** 33.47
1965 *** 10.9 *** 12.98 *** 10.89 *** 23.87 *** 34.77
1970 *** 10.96 *** 12.64 *** 9.03 *** 21.67 *** 32.63
1975 *** 11.45 *** 13.11 *** 8.87 *** 21.98 *** 33.43
1980 *** 11.47 *** 13.15 *** 10.02 *** 23.17 *** 34.64
1985 *** 11.44 *** 13.45 *** 12.67 *** 26.12 *** 37.56
1990 *** 11.57 *** 14.08 *** 14.33 *** 28.41 *** 39.98
1995 *** 11.89 *** 14.99 *** 15.23 *** 30.22 *** 42.11
2000 *** 11.00 *** 15.08 *** 21.52 *** 36.6 *** 47.6
2005 *** 11.18 *** 15.24 *** 21.92 *** 37.16 *** 48.34
2010 *** 12.19 *** 15.99 *** 19.86 *** 35.85 *** 48.04
_________________________________________
gain *** 1.29 *** 3.45 *** 9.83 *** 13.28 *** 14.57


Source of the numbers appears to be the research of Pikkety and Saez.

Just think though, once the economy really gets going, we will probably soon reach the point where the top 10% gets over 50% of the income.

I can hardly wait.

Just note how relatively flat those percentages were in the good old days - before Ronald Reagan.

edit - dang it all elad, the formatting trick that Make7 told me on DU2 isn't working. I have to use my old asterisk technique, and do it with an invisible cursor. Grabs microphone. "clean up on aisle 7, clean up on aisle 7"

Welcome to the Grand Illusion

Yes, I welcome Styx fans.

Well, it seems we sort of have another Super-Committee working to find a "grand bargain" to solve our very serious debt problem. Omigosh, did you hear? The debt limit had to be raised - again. We have to do something.

Yet, we the people are being asked to accept a "grand compromise" between Republicans and Democrats.

However, the Republican position going in to negotiations is - the Ryan budget. This budget promises to balance the budget in ten years. But they start on the revenue side with a brand new idea for Republicans - tax cuts, and in another huge break with precedence, they are tax cuts where the rich get most - if not all of the benefits.

The Ryan budget DOES call for increases in tax revenue, but they do not say how that will happen in combination with the tax rate CUTS which they do specify. They say they will close loopholes and eliminate deductions (maybe that darned standard deduction that all those working people take to avoid paying their fair share). They cannot specify the loopholes because then people would be able to do the math and show their plan simply WILL NOT WORK. It is apparently a faith-based plan requiring Jesus to return and instead of turning water into wine, he will turn tax cuts into increases in revenue. Praise the Lord.

So, we start this Grand Illusion with one side having a position based on some combination of fantasy and lies. And some parts of the media will blame Democrats who do not "compromise" with such dishonest brokers.

Are Democrats saying very much about this basic problem in this 'negotiation"?

But what about the dishonesty of the Democrats? Not to raise the spectre of a dreaded false equivalency, but Democratic Politicians do not seem very honest to me either - most of them anyway.

First of all, by acting like a "grand bargain" is even possible or would somehow be beneficial. Second, by being half-hearted about revenue increases. Obama has proposed the Buffett rule, for one, which would raise a mere $50 billion or so over the next decade.

One thing they clearly can't talk about is their own Ryan-like deception. The fact that many of them already voted in favor of almost $6 trillion in tax cuts over the next decade.

Yes, I said almost $6 trillion - a number you have probably never heard. I had been using the number $3.7 trillion http://www.democraticunderground.com/10022130101

but it turns out I was wrong, or mis-led.

See, that $3.7 trillion number does not include the AMT patch, which was also made PERMANENT as part of the ATRA-(zine) legislation which was passed with Democratic votes and signed by Obama. The cost of THAT was kept hidden because, as Congress always does it (why?) it was already included in the baseline and thus the $1.9 trillion which it will cost over the next decade was not included in the cost calculations.

Isn't it wonderful how our politicians can sweep facts right under the rug?

So the real total (until I discover even MORE tax breaks swept under the rug) is $5.6 trillion - almost $6 trillion.

Now, because I am kind of obsessive about it, let's look at how the $5.6 trillion in tax cuts which DEMOCRATS passed are distributed. I already did this for the $3.7 trillion. Who gets the $1.9 trillion from the AMT patch?

The media will tell you it is the middle class. CTJ (Citizens for Tax Justice) disputes that. http://www.ctj.org/pdf/amtpatchisnotstimulus.pdf

Because that chart is for the Senate proposal from 2009, I cannot be sure those numbers hold for the ATRA's AMT patch, but they are the only numbers I had and since the AMT patch is pretty standard, they should be close.

They show that only 2.5% of the benefits of the patch go to the top 1%. Which is pretty good. But an astounding 43% go to the top 5% and an even more astounding 92.6% of the benefits go to the richest 20%.

So the AMT patch provides tax cuts to the top 5% of $817 billion over the next decade. Combined with the $1.3 trillion in tax cuts from ATRA gives them $2.1 trillion in PERMANENT tax cuts - to the richest 5%.

Well it sure will be nice if the Buffett rule gets $.05 trillion of that back.

But that is something that Democrats are not going to talk about - those $2.1 trillion in tax cuts for the richest 5% that they just voted FOR. Nor will they mention the $4.15 trillion in tax cuts for the richest 20% that they just voted for.

That's the Democratic Party's lie. That they will not bother to mention something like "hey, if we are concerned about the debt, how about undoing the $2.1 trillion in tax cuts we just gave to the richest 5% of Americans"

Of course, if they tried to talk about it, the richest 5% would probably fire them and buy another Congressperson, and as for the media? Well, they are largely owned by the richest 5% too.

But I have this Grand Illusion that I can help to make those two numbers part of the public discussion.
$2,1 trillion in tax cuts for the richest 5%
$4.1 trillion in tax cuts for the richest 20%

Remember them, use them, email them to your Congressperson and your local newspaper. Show me a "grand bargain" that reduces the deficit by more than $4 trillion.
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