Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

U.S. income gap widens, richest share hits record

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 02:59 PM
Original message
U.S. income gap widens, richest share hits record
Source: Reuters

WASHINGTON (Reuters) - The gap between America's richest and poorest is at its widest in at least 25 years, with the wealthiest taking home a record share of the nation's income that exceeds even the previous high in 2000.

According to recent data from the Internal Revenue Service, the richest 1 percent of Americans earned 21.2 percent of all U.S. income earned in 2005. That is a significant increase from 2004 when the top 1 percent earned 19 percent of the nation's income.

The previous high over the past 25 years, when such data were compiled, was in 2000 when a bull market brought the figure up to 20.81 percent.

The Tax Foundation, a nonpartisan tax research group based in Washington, said the wealthy benefited in 2005 from a healthy, growing economy and higher-than-average price inflation.

The IRS data included all of the 132.6 million tax returns filed in 2005 with a positive adjusted gross income, or AGI, also including people who did not earn enough to owe taxes.

Read more: http://www.reuters.com/article/domesticNews/idUSN124150...
Printer Friendly | Permalink |  | Top
lonestarnot Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:03 PM
Response to Original message
1. I think we should recruit some modern day Robin Hoods to office.
Printer Friendly | Permalink |  | Top
 
ThomCat Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:04 PM
Response to Original message
2. Every non-millionare who votes republican
is a damned fool.

And any non-millionare who doesn't evaluate the democratic candidates for pro-corporate, pro-wealthy biases is also a damned fool.

It's time to start taxing unearned income at higher rates than earned income. The investing class should learn that hoarding wealth is a privilage, not a right.
Printer Friendly | Permalink |  | Top
 
Mountainman Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 03:18 PM
Response to Original message
3. Is Rush giving this news to his ditto heads today?
According to this close to half of those filing income tax returns with AGI paid no tax using deductions. Now the poor don't have deductions so who were these folks. I'll wait and see if Rush will tell us. :sarcasm:


Printer Friendly | Permalink |  | Top
 
Quantess Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 07:28 PM
Response to Original message
4. Rich were already getting richer and poor were already getting poorer when I was 13 years old.
Reagan had only been in office a few years before we started to see the income gap widen. (For the younger DUers out there, Reagan was first elected in 1980.) The rich-poor disparity has sometimes slowed in growth since Reagan, but the gap has been growing over the years.
Printer Friendly | Permalink |  | Top
 
FatDave Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-28-07 11:54 PM
Response to Reply #4
5. Absolutely right
This all started with Reagan. The Economic Recovery Tax Act of 1981 cut the top bracket tax rate from 70% to 50%, and the bottom rate from 14% to 11% over 3 years. 20% cut for the rich, 3% cut for the poor. Funny how that worked.

But if that wasn't enough, 5 years later came The Tax Reform Act of 1986. This cut the top rate from 50% to 28% and...wait for it...raised(!) the bottom rate to 15%, which is higher than when Reagan took office.

So over the course of about 7 years, the richest Americans went from being taxed at 70% to 28% and the poorest from 14% to 15%. And around that time we started seeing the gap between rich and poor grow rapidly.

Clinton slowed things a bit with the Omnibus Budget Reconciliation Act of 1993, which raised the top rate to 39% among other things. But that's still nowhere near the pre-Reagan 70% level, then W came along and cut that back to 35% anyway.

We really need a new new deal in this country. Shame none of our elected officials have the guts to say anything even close to that.

References:
http://en.wikipedia.org/wiki/Economic_Recovery_Tax_Act
http://en.wikipedia.org/wiki/Tax_Reform_Act_of_1986
http://en.wikipedia.org/wiki/Omnibus_Budget_Reconciliat...
http://en.wikipedia.org/wiki/Economic_Growth_and_Tax_Re...
Printer Friendly | Permalink |  | Top
 
Flirtus Donating Member (500 posts) Send PM | Profile | Ignore Thu Nov-29-07 09:28 AM
Response to Reply #5
8. Post of the Year Winner!
This is what it's all about, thanks for the succinct message I'll use again and again!
Printer Friendly | Permalink |  | Top
 
FatDave Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 03:14 PM
Response to Reply #8
14. Wow, thanks!
I can't say I agree with you, but I appreciate the kind words just the same.
Printer Friendly | Permalink |  | Top
 
donkeyotay Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 10:57 AM
Response to Reply #5
10. More fuzzy republican math. Cut the rate from 14% to 11%, and then
raise it to 15% when nobody is looking and proclaim a tax cut. That's the same rate those hedge fund managers making over a billion a year are paying. It could certainly be argued - as we witness the latest evidence of corruption in the markets - that those who make their living off those casinos should pay, if for no other reason, the taxes necessary to regulate them and provide bailouts periodically.
Printer Friendly | Permalink |  | Top
 
Union Thug Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 01:35 AM
Response to Original message
6. Time to bring back the guillotine.
Just saying...
Printer Friendly | Permalink |  | Top
 
1932 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 08:23 AM
Response to Original message
7. Mission accomplished.
Printer Friendly | Permalink |  | Top
 
bdamomma Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 10:03 AM
Response to Original message
9. let those 1% roll in it, every dog has its day, and they should
not be so confident to screw everyone else.
Printer Friendly | Permalink |  | Top
 
CatholicEdHead Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 11:21 AM
Response to Original message
11. How does this compare to the 1920's?
Printer Friendly | Permalink |  | Top
 
fascisthunter Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 11:43 AM
Response to Original message
12. Regardless of Anyone's Background
this should tell folks that their is one consistant trend in the US and around the World: the Wealthy get wealthier and everyone else can go to hell.

Wake up America!
Printer Friendly | Permalink |  | Top
 
fencesitter Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-29-07 12:45 PM
Response to Original message
13. Hurry up and kill the inheritance tax...
So the "death tax" won't wipe out their hard earned estate.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Mon Jul 28th 2014, 11:52 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC