Welcome login | signup
Language en es fr
OccupyForum

Forum Post: Don't believe this outrageous crap about the rich paying 37% of the taxes in America. Its a trick. A spin on statistics to make it seem as if the rich are overtaxed. They aren't. But they damn well should be. We're in this mess because of them.

Posted 12 years ago on Dec. 10, 2011, 10:38 a.m. EST by ModestCapitalist (2342)
This content is user submitted and not an official statement

Don't believe this outrageous crap about the rich paying 37% of the taxes in America and the poor paying none. It's a trick. A spin on statistics to make it seem as if the rich are overtaxed. They aren't. But they damn well should be. We're in this mess because of them.

Be careful when you hear or read anything regarding the PERCENTAGE of OVERALL FEDERAL INCOME taxes paid by any particular group, it's a terribly misleading statistic. The rich pay a larger PERCENTAGE of OVERALL FEDERAL INCOME taxes now than 10 years ago because they have a larger PERCENTAGE of OVERALL INCOME in America now than 10 years ago. That statistic regarding 37% of Federal Income Taxes is one of the most misleading in the history of propaganda.

When you account for all FEDERAL, STATE, and LOCAL taxes and fees, the middle class actually pay about the same rate (as a percentage of income) as the rich. The difference is within 5 percent. It shouldn't be that way. The rich should pay a MUCH higher rate simply because they are horribly over-paid. We aren't. They own 43% of all financial wealth in America. We share the rest. But it gets even more disgusting. The devil is in the details.

Corporate profits have been partially subsidized with federal, state, and local revenue. This benefit has been hoarded at the top. Business managers make up the largest group of one percent club pigs. Plus 40% of the market is owned by the top 1%. Their record territory dividends have been partially subsidized by federal, state, and local revenue. The benefits have not been shared proportionally with the little guy. The lopsided division of growth across quintiles proves it. 

The highest percentile has grown more than 10 times faster than the middle percentile over the last 30 years. This is true EVEN AFTER taxes. When you account for inflation and the actual cost of living (tied to record high profits in energy, finance, and healthcare), the middle class have actually lost relative buying power while the top 1% have drastically increased their income and bottom line wealth. 

In 1976 (when their taxes were much higher), the top one percent reaped 9 percent of all private income and held less than 20 percent of all private wealth in America. Now, they reap 21 percent of all private income and hold 40 percent of all private wealth. Meanwhile, the lower majority (those who are still employed) are working more hours and have less to show for it.

Just to make it crystal clear: The rich do not pay 37% of all taxes. They never have. They pay roughly 37% of all FEDERAL INCOME TAXES which account for less than 1/2 of total government revenue. The rest is drawn from a number of sources and across income levels. The rich harp on this 'Federal Income Tax' statistic because it leads people to believe that they pay 37% of ALL taxes. They don't. Their share as a group represents just over their share of income. The difference is within 5 percent. In fact, the 2nd percentile actually pays a slightly higher rate on average than the top percentile. 

If the rich want to pay a lower share of the taxes in America, then they should get themselves a lower share of the income in America. In other words, don't be so rich to begin with. After all, this obscene concentration of wealth actually CAUSES economic instability. It CAUSES poverty. It will CAUSE the next Great Depression.

No more excuses.  

RAISE THOSE GOD DAMN TAXES ON THE RICH!

87 Comments

87 Comments


Read the Rules
[-] 6 points by JadedCitizen (4277) 12 years ago

Labor economist Sylvia Allegreto at the University of California, Berkeley, said six relatives of Walmart founders Sam and James Walton were worth $69.7 billion in 2007 and are now worth about $93 billion.

Allegreto said that meant that in 2007 the six were already wealthier than the bottom 30 percent of U.S. families, the Los Angeles Times reported Friday.

http://www.upi.com/Business_News/2011/12/09/Walton-family-wealth-put-in-perspective/UPI-18781323463185/____________________________________________________________

If the estate tax—which Republicans have cleverly rebranded the “death tax”—were to be eliminated entirely (another GOP goal), Sander says it would cost US taxpayers $1 trillion over 10 years. “Families such as the Walton family, of Walmart fame, would have received, just this one family, about a $30 billion tax break,” he said in the speech.

Now here’s Bernie Sanders’ dubious “Top Ten” list:

10- Carnival Cruise Lines: Made $11 billion in profits over the last five years, but its federal income tax rate during that period was 1.1%

9- ConocoPhillips: $16 billion in profits from ’07-’09; received $451 million in tax breaks through dubious deductions.

8- Citigroup: $4 billion in profits in 2010, paid no federal income tax AND received a $2.5 trillion bailout from the Federal Reserve and the US Treasury.

7- Goldman Sachs: $2.3 billion profit in ’08; paid only 1.1% of its income in taxes AND received an $800 billion bailout.

6- Valero Energy: $68 billion in sales last year; $157 million tax refund AND $134 million deduction.

5- Boeing: received $30 billion Pentagon contract to build 179 airborne tankers; received $124 million IRS refund.

4- Chevron: $10 billion in profits in ’09; $19 million refund last year.

3- General Electric: $26 billion in profits over the last 5 years; received $4.1 billion refund from the IRS.

2- Bank of America: $4.4 billion profit + trillion dollar bailout (that’s 1 with 12 zeros– $1,000,000,000,000); received $1.9 billion IRS refund.

1- ExxonMobil: $19 billion profit in ’09; paid $0.00 in federal income tax AND received a $156 million IRS rebate.

http://morallowground.com/2011/03/30/the-moral-high-ground-senator-bernie-sanders-names-shames-americas-top-10-corporate-tax-dodgers/


[Removed]

[-] -2 points by StillModestCapitalist (343) 9 years ago

Well said JadedCitizen. Evidently, others feel the same way. Or at least they did three years ago before this website was transformed into a liberal vote killer. 5 points. Good for you.

Update: Make it 6 points. I just marked you up.

[-] 4 points by ModestCapitalist (2342) 12 years ago

The most profitable industries in the world (energy, healthcare, finance) have been given billions in government handouts and tax breaks. Meanwhile, they keep raising charges causing hardship for millions. With all those massive handouts, tax breaks, and obscene charges, profits rise to record high levels. Millions in bonuses are paid to the executives. With record high profits, record high dividends are paid. 40% of all dividends in the United States are paid to the richest one percent. All of this causes a gradual concentration of wealth and income. This results in a net loss for the lower majority who find it more and more difficult to cover the record high cost of living, which again, is directly proportional to record high profits for the rich. As more and more people struggle to make ends meet, more and more financial aid becomes necessary. Most of which goes right back to the health care industry through Medicare, Medicaid, and a very expensive prescription drug plan. This increases government spending. This has been happening for 30 years now. During the same time, tax rates have been lowered drastically for the richest one percent. Especially those who profit from investments. These people pay only 15 percent on capital gains income. As even more wealth concentrates, the lower majority find it more difficult to sustain there share of the consumer driven economy. Demand drops as more and more people go broke. Layoffs results. Unemployment rises. This results in less revenue and more government debt.

Massive subsidies and tax breaks for Wall Street, massive tax breaks for the super rich, heavy concentration of wealth, record high charges along with record high profits and record high cost of living, more hardship for the lower majority, more government spending in the form of financial aid to compensate, more concentration of wealth, less demand, layoffs and unemployment. All of this results in slower economy and less tax revenue. At the same time more and more financial aid becomes necessary. It's a horrible downward cycle which gradually pushes the national debt higher and higher.

The other big factors are the wars in the Middle East.

This post is not intended to excuse those who sit on the couch collecting welfare, make no attempt to find work, or squease out kids they can't provide for.

[-] 1 points by aries (463) from Nutley, NJ 12 years ago

the wars cost 2 trillion - where is the other 13 trillion ? question - when they cut the cap gains taxes did revenue go up - sown - or stay the same?

[-] 1 points by aries (463) from Nutley, NJ 12 years ago

so the government is giving billions in handouts. why are you not occupying the government? why are you not occupying GE? I havent heard Jeff Imelts name mentioned once. It's the Kock Brothers Goldman SAchs etc. Meanwhile Obama's right hand man hasnt paid 1 cent in taxes but no mention by this movement. Please - give me a break

[-] 1 points by ModestCapitalist (2342) 12 years ago

I will not focus my criticism on just the government, one man, or one corporation. That being said, there are far too many pigs to name.

[-] 1 points by aries (463) from Nutley, NJ 12 years ago

just as I thought. Thanks

[-] 1 points by ModestCapitalist (2342) 12 years ago

Just for the record. I'm aware of the hypocrite pigs who make up Obama's team. I havn't made any excuses for any of them.

[-] 3 points by TLydon007 (1278) 12 years ago

You forgot to mention the largest flaw in their "statistic".

FEDERAL INCOME TAXES does not include PAYROLL TAXES.

Those of us that pay taxes all year round and receive a return on the overpaid amount are not included.

[-] 1 points by ithink (761) from York, PA 12 years ago

Are you sure? Seems like that would be included

[-] 1 points by TLydon007 (1278) 12 years ago

Absolutely sure.

Federal Income Taxes does not include Payroll Taxes. It only refers to the amount you're expected to pay by tax day, that is, if you haven't paid it in the form of payroll taxes.

It's the most misleading and dubious statistic in the world. Whenever you see "Income Taxes" in a statistic, it only refers to that. Those people calling themselves the 53% or whatever, that statistic is also based on the same exact flaw.

[-] 2 points by FriendlyObserverA (610) 12 years ago

Since their wealth comes from the markets they own. Perhaps we should Cap their profit margins ( percentage). This would prevent them from taking so much in the first place , and like you say cause great economic strife.

In retrospect a profit cap would have equalized the wealth distribution.

Otherwise I like your post. You have are certainly viewing the problem correctly.

[-] -1 points by StillModestCapitalist (343) 9 years ago

Thank you.

[-] 2 points by Nevada1 (5843) 12 years ago

Agree.

[-] 2 points by Misfit138 (172) 12 years ago

We need a stepped (progressive) tax code with no loop holes. Businesses should have a flat rate and not have the ability to be taxed after interest as this forces businesses to take on too much debt, increasing their risk which then increases the risk of a larger collapse. Any other erroneous tax that the government comes up with should be capped at 5% so that they don't start taxing one product, industry or class of people disproportionately to another. Finally, the government needs to get control of the spending. All foreign aid and needless wars need to stop. Close at least half of our bases overseas (I am a combat vet and still serve) and take a long, hard look at entitlement spending. Something needs to change, but there is no "one size fits all" magic tax rate or spending cut that can fix it all.

[-] 2 points by ZenDogTroll (13032) from South Burlington, VT 12 years ago

let us propose a fair and equitable tax solution

those who have advocated for economic policy that has run amok must go

[-] 2 points by ModestCapitalist (2342) 12 years ago

The ugly truth. America's wealth is STILL being concentrated. When the rich get too rich, the poor get poorer. These latest figures prove it. AGAIN.

According to the Social Security Administration, 50 percent of U.S. workers made less than $26,364 in 2010. In addition, those making less than $200,000, or 99 percent of Americans (actually more like 98%), saw their earnings fall by $4.5 billion collectively.

The sobering numbers were a far cry from what was going on for the richest one percent of Americans.

The incomes of the top one percent of the wage scale in the U.S. rose in 2010; and their collective wage earnings jumped by $120 billion. In addition, those earning at least $1 million a year in wages, which is roughly 93,000 Americans, reported payroll income jumped 22 percent from 2009. Overall, the economy has shed 5.2 million jobs since the start of the Great Recession in 2007. It’s the worst economic downturn since the Great Depression in the 1930’s.

Another word about the first Great Depression. It really was a perfect storm. Caused almost entirely by greed. First, there was unprecedented economic growth. There was a massive building spree. There was a growing sense of optimism and materialism. There was a growing obsession for celebrities. The American people became spoiled, foolish, naive, brainwashed, and love-sick. They were bombarded with ads for one product or service after another. Encouraged to spend all of their money as if it were going out of style. Obscene profits were hoarded at the top. In 1928, the rich were already way ahead. Still, they were given huge tax breaks. All of this represented a MASSIVE transfer of wealth from poor to rich. Executives, entrepreneurs, developers, celebrities, and share holders. By 1929, America's wealthiest 1 percent had accumulated 44 percent of all United States wealth. The upper, middle, and lower classes were left to share the rest. When the lower majority finally ran low on money to spend, profits declined and the stock market crashed.

 Of course, the rich threw a fit and started cutting jobs. They would stop at nothing to maintain their disgusting profit margins and ill-gotten obscene levels of wealth as long as possible. The small business owners did what they felt necessary to survive. They cut more jobs. The losses were felt primarily by the little guy. This created a domino effect. The middle class shrunk drastically and the lower class expanded. With less wealth in reserve and active circulation, banks failed by the hundreds. More jobs were cut. Unemployment reached 25% in 1933. The worst year of the Great Depression. Those who were employed had to settle for much lower wages. Millions went cold and hungry. The recovery involved a massive infusion of new currency, a World War, and higher taxes on the rich. With so many men in the service, so many women on the production line, and those higher taxes to help pay for it, some US wealth was gradually transferred back down to the majority. This redistribution of wealth continued until the mid seventies. By 1976, the richest 1 percent held  less than 20 percent. The lower majority held the rest. This was the recovery. A partial redistribution of wealth.

  Then it began to concentrate all over again. Here we are 35 years later. The richest one percent now own 40 percent of all US wealth. The upper, middle, and lower classes are sharing the rest. This is true even after taxes, welfare, financial aid, and charity. It is the underlying cause. No redistribution. No recovery.

The government won't step in and do what's necessary. Not this time. It's up to us. Support small business more and big business less. Support the little guy more and the big guy less. It's tricky but not impossible.

For the good of society, stop giving so much of your money to rich people. Stop concentrating the wealth. This may be our last chance to prevent the worst economic depression in world history. No redistribution. No recovery.

Those of you who agree on these major issues are welcome to summarize this post, copy it, link to it, save it, show a friend, or spread the word in any fashion. Most major cities have daily call-in talk radio shows. You can reach thousands of people at once. They should know the ugly truth. Be sure to quote the figures which prove that America's wealth is still being concentrated. I don't care who takes the credit. We are up against a tiny but very powerful minority who have more influence on the masses than any other group in history. They have the means to reach millions at once with outrageous political and commercial propaganda. Those of us who speak the ugly truth must work incredibly hard just to be heard.

[-] 2 points by jomojo (562) 12 years ago

One fact is that the system is too complicated to analyze by most of us, who leave it to others. Even bills submitted for legislation are such a bog of details that it's admittedly not always read by those empowered to vote on them. The few truths that the 1% use are powerful, such as wasteful spending is a problem. My understanding is that taxes collected by employers, (what a bad idea), by workers punching the clock are the mainstay of our government's funding. But how would I know? Bureaucrats have created a monster. One out of a 100 persons are in the 1%, and they need bureaucracy to work for them. Bypass Bureaucracy.

[-] 1 points by bigbangbilly (594) 12 years ago

Seen the loop holes? I heard they are very huge.

[-] 1 points by barb (835) 12 years ago

It is the elite that created our economic mess so they should be the ones to pay for the deficit by themselves without the middle and lower class having to pay any of it.

[-] 1 points by Apercentage (81) 12 years ago

"horribly overpaid"? how can anyone justify what is overpaid and what is not? thats just jealousy talking.

[-] 1 points by ModestCapitalist (2342) 12 years ago

We had this debate three weeks ago. You gave me the usual crap about free market, called me a 'circle jerk' twice but then whimped out and failed to respond to my last post. Here. I'll give you another chance:

I've already responded to every one of your points on a number of pages. I'll skip the stupid assumptions and psychological BS for now as I am busy with another project.

Just read this:

The ugly truth. America's wealth is STILL being concentrated. When the rich get too rich, the poor get poorer. These latest figures prove it. AGAIN.

According to the Social Security Administration, 50 percent of U.S. workers made less than $26,364 in 2010. In addition, those making less than $200,000, or 99 percent of Americans (actually more like 98%), saw their earnings fall by $4.5 billion collectively.

The sobering numbers were a far cry from what was going on for the richest one percent of Americans.

The incomes of the top one percent of the wage scale in the U.S. rose in 2010; and their collective wage earnings jumped by $120 billion. In addition, those earning at least $1 million a year in wages, which is roughly 93,000 Americans, reported payroll income jumped 22 percent from 2009. Overall, the economy has shed 5.2 million jobs since the start of the Great Recession in 2007. It’s the worst economic downturn since the Great Depression in the 1930’s.

Another word about the first Great Depression. It really was a perfect storm. Caused almost entirely by greed. First, there was unprecedented economic growth. There was a massive building spree. There was a growing sense of optimism and materialism. There was a growing obsession for celebrities. The American people became spoiled, foolish, naive, brainwashed, and love-sick. They were bombarded with ads for one product or service after another. Encouraged to spend all of their money as if it were going out of style. Obscene profits were hoarded at the top. In 1928, the rich were already way ahead. Still, they were given huge tax breaks. All of this represented a MASSIVE transfer of wealth from poor to rich. Executives, entrepreneurs, developers, celebrities, and share holders. By 1929, America's wealthiest 1 percent had accumulated 44 percent of all United States wealth. The upper, middle, and lower classes were left to share the rest. When the lower majority finally ran low on money to spend, profits declined and the stock market crashed.

Of course, the rich threw a fit and started cutting jobs. They would stop at nothing to maintain their disgusting profit margins and ill-gotten obscene levels of wealth as long as possible. The small business owners did what they felt necessary to survive. They cut more jobs. The losses were felt primarily by the little guy. This created a domino effect. The middle class shrunk drastically and the lower class expanded. With less wealth in reserve and active circulation, banks failed by the hundreds. More jobs were cut. Unemployment reached 25% in 1933. The worst year of the Great Depression. Those who were employed had to settle for much lower wages. Millions went cold and hungry. The recovery involved a massive infusion of new currency, a World War, and higher taxes on the rich. With so many men in the service, so many women on the production line, and those higher taxes to help pay for it, some US wealth was gradually transferred back down to the majority. This redistribution of wealth continued until the mid seventies. By 1976, the richest 1 percent held less than 20 percent. The lower majority held the rest. This was the recovery. A partial redistribution of wealth.

Then it began to concentrate all over again. Here we are 35 years later. The richest one percent now own 40 percent of all US wealth. The upper, middle, and lower classes are sharing the rest. This is true even after taxes, welfare, financial aid, and charity. It is the underlying cause. No redistribution. No recovery.

Now, are you willing to acknowledge any ACTUAL downside with regard to the concentration of wealth?

Please include a 'yes' or 'no' somewhere in your response. If yes, tell me how to address the issue in time to prevent a global depression.

One last point for now:

Everytime a firefighter saves a life, he/she is saving the potential income of that individuals remaining life. Every penny of it. Everytime a firefighter saves a forest or a structure or an entire community, he/she is immediately saving the majority of resources within that forest and the majority of wealth within that structure or community plus any additional wealth that would be created from the resources or within the structure or community during the period of time which would be necessary to recover fully if the fire were left to burn itself out with no intervention whatsoever.

So don't feed me some half-wit crap that firefighters aren't responsible for billions. They sure as hell are. Not necessarily on every call but try to imagine what would happen if 500 firefighters decided to walk off the job with a raging wildfire just outside of a thriving upper class community. Think about the immediate loss of wealth and the subsequent loss. Give it some thought. You circle jerk.

[-] 1 points by FriendIyobserver (-28) 12 years ago

Lets just tax them 100% the 99% are sick of these people. If they try to quit whatever meaningless job then they should be locked up if they don't comply who is with me.

Chest Rockwell President and Spokesman of OWS

[-] 1 points by ModestCapitalist (2342) 12 years ago

Friendlyobserver is nothing but a troll here in an attempt to make us out to be radicals. Disregard her/his/its entries.

[-] 1 points by FriendIyobserver (-28) 12 years ago

Your the troll and yes I am a radical. That is why I am the leader of this movement, it needs direction and balls which I have. I was chosen by the 99% to lead us out of this honkey paradise.

[-] 1 points by ModestCapitalist (2342) 12 years ago

Bullshit.

[-] 1 points by BlueRose (1437) 12 years ago

Thanks for this post.

[-] -1 points by StillModestCapitalist (343) 9 years ago

You're welcome.

[-] 1 points by PandoraK (1678) 12 years ago

While I understand your ire, maybe this will lessen it some what.

http://westandwiththe99percent.tumblr.com/

Not all the rich are greedy, not all the rich wish to receive 'special treatment' in tax codes.

[-] 3 points by ModestCapitalist (2342) 12 years ago

The very concept of extreme personal wealth is the epitome of greed. It's a relative form of evil. But still evil.

The concentration of wealth has gone too far already. I will not make or accept any excuses for those who concentrate it even further.

No person on this planet is worth 100 times the pay of a firefighter. No one.

[-] 0 points by GirlFriday (17435) 12 years ago

Interesting read.

[-] 0 points by foreeverLeft (-264) 12 years ago

So, are you saying we should lower taxes? Makes sense, smaller government, lower taxes, more freedom, what's not to love??

[-] 1 points by ModestCapitalist (2342) 12 years ago

Record high concentration of wealth. Thats what.

[-] 0 points by Doc4the99 (591) from Washington, DC 12 years ago

This is all backed up by Jeff Sachs, he makes good points along these lines. About how hedge fund managers making 5 billion a year pay 15 percent on those earnings.

http://www.aljazeera.com/programmes/talktojazeera/2011/12/2011121074125944352.html

probably a better link than aljazeera; but google Jeffrey sachs, good stuff! Good post. -- original poster

[-] 0 points by Brandon37 (372) 12 years ago

The rich did not cause our problems. Our Govt caused our problems. World Governments caused our problems. Advances in technologies and developing nations caused our problems. The OP is among those who are not helpful. They only cause division.

[-] -1 points by Farleymowat (415) 12 years ago

Blame your lawmakers. Rich people are not the ones who pass laws. Lawmakers are the crooks. Lawmakers are yellow bellied, scum. They pass all kinds of legislation, and pander to special interest and the ones who want handouts. Now we have a mountain of debt, caused by LAWMAKERS. If they would raise taxes as we go to pay for all this bullshit, the people would vote new lawmakers every election or go along with it. Our government would not have become this massive tumor, sucking the life out of the citizenry. Get real you bunch of greedy little moochers.

[-] 2 points by ModestCapitalist (2342) 12 years ago

I never made any excuses for our lawmakers. The rich and our lawmakers are both driven by the same form of evil. In fact, most of our federal law makers are rich. The rest are working on it. It's the same form of evil.

Greed. The desire for extreme personal wealth. It's a relative form of evil. But still evil.

[-] -1 points by Farleymowat (415) 12 years ago

Well, thanks for the input. I get agitated as hell with all of these people screaming Obamas mantra of pay your fair share. If someone isn't paying their fair share they are what is known as a tax cheater. what I hear you saying, basically, is now that the lawmakers have run the country into the hole, 15 trillion, the rich are supposed to suck it up and cover for the mistakes of lawmakers for the past 50 years. Am I right , or am I missing something?

[-] 2 points by ModestCapitalist (2342) 12 years ago

The rich have lobbied for and benefited from our current tax structure. This includes hundreds of billions in corporate subsidies. In the last 30 years, the richest one percent have nearly tripled their after tax after inflation incomes. They have more than doubled their share of private wealth in America. It's gone too far. I've had it with the excuses.

[-] -1 points by Farleymowat (415) 12 years ago

Politicians are to blame. If a politician is taking bribes,(and we all know many do) they are the crooks too, much more so in my opinion. Greed is right. They have the authority to pass or fail legislation. Perhaps taking a bribe should be punished with a noose.

[Removed]

[-] -1 points by Pottsandahalf (141) 12 years ago

What about the fact that about half of Americans pay no federal taxes whatsoever?

[-] 2 points by ModestCapitalist (2342) 12 years ago

Like I said, it's not that simple. It will be even less so in two weeks when the payroll tax goes back into effect.

[-] 1 points by looselyhuman (3117) 12 years ago

20% of working-age people are so poor they don't pay taxes: There rest of that supposed 50% is seniors, children, and tax-dodging millionaires: http://www.smirkingchimp.com/thread/jmadison/28292/the-47-myth-just-who-pays-income-tax-anyway

[-] -1 points by aries (463) from Nutley, NJ 12 years ago

Really? Just look at the IRS data. Top 1% pay 24.01 % of what the federal government collects in personal incom tax.

http://www.taxfoundation.org/news/show/250.html#table1

[-] 3 points by ModestCapitalist (2342) 12 years ago

The top 1% reap over 24% of all personal income and hold more than 43% of all private wealth in America.

I will check your source but what I've just stated has been confirmed many times over.

[-] -1 points by aries (463) from Nutley, NJ 12 years ago

and - so some people do well for themselves. big deal. What has that got to do with you ?

[-] 1 points by ModestCapitalist (2342) 12 years ago

This:

The ugly truth. America's wealth is STILL being concentrated. When the rich get too rich, the poor get poorer. These latest figures prove it. AGAIN.

According to the Social Security Administration, 50 percent of U.S. workers made less than $26,364 in 2010. In addition, those making less than $200,000, or 99 percent of Americans (actually more like 98%), saw their earnings fall by $4.5 billion collectively.

The sobering numbers were a far cry from what was going on for the richest one percent of Americans.

The incomes of the top one percent of the wage scale in the U.S. rose in 2010; and their collective wage earnings jumped by $120 billion. In addition, those earning at least $1 million a year in wages, which is roughly 93,000 Americans, reported payroll income jumped 22 percent from 2009. Overall, the economy has shed 5.2 million jobs since the start of the Great Recession in 2007. It’s the worst economic downturn since the Great Depression in the 1930’s.

Another word about the first Great Depression. It really was a perfect storm. Caused almost entirely by greed. First, there was unprecedented economic growth. There was a massive building spree. There was a growing sense of optimism and materialism. There was a growing obsession for celebrities. The American people became spoiled, foolish, naive, brainwashed, and love-sick. They were bombarded with ads for one product or service after another. Encouraged to spend all of their money as if it were going out of style. Obscene profits were hoarded at the top. In 1928, the rich were already way ahead. Still, they were given huge tax breaks. All of this represented a MASSIVE transfer of wealth from poor to rich. Executives, entrepreneurs, developers, celebrities, and share holders. By 1929, America's wealthiest 1 percent had accumulated 44 percent of all United States wealth. The upper, middle, and lower classes were left to share the rest. When the lower majority finally ran low on money to spend, profits declined and the stock market crashed.

 Of course, the rich threw a fit and started cutting jobs. They would stop at nothing to maintain their disgusting profit margins and ill-gotten obscene levels of wealth as long as possible. The small business owners did what they felt necessary to survive. They cut more jobs. The losses were felt primarily by the little guy. This created a domino effect. The middle class shrunk drastically and the lower class expanded. With less wealth in reserve and active circulation, banks failed by the hundreds. More jobs were cut. Unemployment reached 25% in 1933. The worst year of the Great Depression. Those who were employed had to settle for much lower wages. Millions went cold and hungry. The recovery involved a massive infusion of new currency, a World War, and higher taxes on the rich. With so many men in the service, so many women on the production line, and those higher taxes to help pay for it, some US wealth was gradually transferred back down to the majority. This redistribution of wealth continued until the mid seventies. By 1976, the richest 1 percent held  less than 20 percent. The lower majority held the rest. This was the recovery. A partial redistribution of wealth.

  Then it began to concentrate all over again. Here we are 35 years later. The richest one percent now own 40 percent of all US wealth. The upper, middle, and lower classes are sharing the rest. This is true even after taxes, welfare, financial aid, and charity. It is the underlying cause. No redistribution. No recovery.

The government won't step in and do what's necessary. Not this time. It's up to us. Support small business more and big business less. Support the little guy more and the big guy less. It's tricky but not impossible.

For the good of society, stop giving so much of your money to rich people. Stop concentrating the wealth. This may be our last chance to prevent the worst economic depression in world history. No redistribution. No recovery.

Those of you who agree on these major issues are welcome to summarize this post, copy it, link to it, save it, show a friend, or spread the word in any fashion. Most major cities have daily call-in talk radio shows. You can reach thousands of people at once. They should know the ugly truth. Be sure to quote the figures which prove that America's wealth is still being concentrated. I don't care who takes the credit. We are up against a tiny but very powerful minority who have more influence on the masses than any other group in history. They have the means to reach millions at once with outrageous political and commercial propaganda. Those of us who speak the ugly truth must work incredibly hard just to be heard.

[-] -1 points by aries (463) from Nutley, NJ 12 years ago

so why dont you get some skills if you want to earn more money? Thats how most people do it. stop your whining.

[-] 4 points by ModestCapitalist (2342) 12 years ago

I've done that. I'm doing alright. But there is a lot of injustice out there. A lot of economic and social instability directly related to this record high concentration of wealth.

Whining? Save your petty psychological tricks. They won't work on me. I'm way beyond whining. I'm God damn pissed off. I have a lot to say and you can't stop me.

Deal with it.

[-] -1 points by aries (463) from Nutley, NJ 12 years ago

so your pissed off about the inequalities in the world wow ! Deep thinker. Stop the Class envy - it's childish.

[-] 3 points by ModestCapitalist (2342) 12 years ago

If you think it's about envy, then you're the shallow thinker. Not me.

[-] 0 points by aries (463) from Nutley, NJ 12 years ago

of course it's about envy - poor people aren't poor because rich people are rich.

[-] 1 points by ModestCapitalist (2342) 12 years ago

Bullshit. Many of them are.

Those of you who aren't sure, read the post about the concentration of income and bottom line wealth on this page. You're welcome to double check the stats.

[-] 1 points by aries (463) from Nutley, NJ 12 years ago

just because there is concentration of wealth at the top doesnt mean that is making poor people poor. please - get a grip

[-] 1 points by ModestCapitalist (2342) 12 years ago

Albert Einstein went on record with similar views regarding the first Great Depression. Most people aren't aware that a partial redistribution of wealth took place from the '40's to the mid '70's.

There is a correlation between wealth and poverty.

[-] 1 points by aries (463) from Nutley, NJ 12 years ago

we already are redistributing wealth. you haven't explained how rich people make people poor. Actually now that you mention it - the number one factor for being in poverty is being a single parent household.

[-] 1 points by ModestCapitalist (2342) 12 years ago

Thats a factor. No argument there. But the primary factor of hardship in the developed world is the record high cost of living. This is tied directly to record high charges for energy, healthcare, and finance. This also drives up the cost for food and housing.

All of this is directly proportional to record high profits and incomes for the rich. By denying the correlation, you flush any chance of credibility you ever had down the toilet.

No correlation between wealth and poverty? Thats a good one.

Next.

[-] 1 points by aries (463) from Nutley, NJ 12 years ago

it is the primary factor. The most common factor of poverty - the single parent household. look it up. Also teen pregnancy, lack of skills etc. How does a rich person get an inner city teenager pregnant?

[-] -2 points by Fedup15 (30) 12 years ago

If you take 100% of the wealth of the wealthy it will not even make a dent in the budget deficit. Our spending is out of control and entitlements must be curtailed. As the economy improves, modest tax increases are needed and will be enacted. The only way to reduce the deficit is to get the economy growing once again. This class warfare rhetoric is hurting the country.

[-] 4 points by shoozTroll (17632) 12 years ago

Our spending is out of control, because it spends almost everything to protect the interests of those corporations and 1%ers.

[-] 1 points by jomojo (562) 12 years ago

If the spending is not for purchasing from the 1%, then it's for money for the 99% to increase their purchasing, from the 1%. Money won at a casino, (government spending programs), is allotted based on research of how much will return to the pockets of the casino, (business friends of politicians). Even USA foreign policy ties aid to how and where foreign states will spend their increase in budgets. My point is that it's a rigged game, based on social, math, and advertising science. Often those foreign states increase their expenditures for military purchases. (Made in USA). This is equivalent to increasing USA military spending, but gives cover to USA politicians who wish to be known as being against deficit spending or for helping the world's less fortunate. OWS is calling BS.

[-] 1 points by shoozTroll (17632) 12 years ago

I understand this, fully.

This is what Eisenhower warned us about.

[-] 3 points by ModestCapitalist (2342) 12 years ago

Hey genius! First of all, you are forgetting that Federal Income Tax represents less than 1/2 of all government revenue. It was never intended to be the only source. Second, you are forgetting that record high charges in energy, healthcare, and finance actually increase the need for financial aid. This increases government spending. Third, you are forgetting about the hundreds of billions in subsidies for the rich. Fourth, you are under the assumption that the annual deficit must be eliminated entirely and immediately. That is far too radical. We don't need to eliminate the annual deficit immediately. We only need to 'bend the curve'. Fifth, you are forgetting that it took 30+ years for America to accumulate $15,000,000,000,000 in debt. Most of which is owed within our own country. For the most part, it's the same pie. Sixth, you are forgetting that the richest 1% in America own more than 43% of all financial wealth in America. This is much more than enough to pay off the entire national debt .

So don't try to divert my attention with your spin on statistics. That crap won't work with me.

Next.

[-] -2 points by Fedup15 (30) 12 years ago

As i write my tax checks to the federal govt, states ( i pay in all 52 states) and real estate taxes, i am missing the subsidies for the wealthy?! Please fill me in as i want to get some of them! Finally we should own a majority of the wealth as we earned it the old fashion way. I went to school, learned a profession, excelled at it, paid off my student loans and now i am near retirement. I raised a family and had and have a wonderful life thus far. I am not angry as you appear to be for which i am grateful. I wish you to find peace in your time. I wish you much success but remember their is a cost to success and its called hard work and sacrifice. And always remember to earn it honestly and help the person behind you get up the mountain.

[-] 3 points by ModestCapitalist (2342) 12 years ago

I've already explained how the incomes of the rich have been partially subsidized. Read it again.

And don't feed me your bogus 'good will' crap. I'm not falling for it. Greed and generosity are polar opposites. You can't epitomize both at once.

[-] -1 points by Fedup15 (30) 12 years ago

I was successful without greed and i practice generocity. I know many very successful folks who earned it and are very generous with it.

[-] 3 points by ModestCapitalist (2342) 12 years ago

Greed and generosity are polar opposites. You can not epitomize both at once. The very concept of extreme personal wealth is the epitome of greed. It's a relative form of evil. But still evil.

The concentration of wealth has gone too far already. I will not make or accept any excuses for those who concentrate it even further.

No person on this planet is worth 100 times the pay of a firefighter. No one.

[-] -1 points by Fedup15 (30) 12 years ago

You are wrong. hard work which leads to wealth does not mean that the person is greedy. You are judgemental and need to come down from your high horse judging people with a broad brush.

[-] 0 points by ModestCapitalist (2342) 12 years ago

It's not that simple. The richest one percent now hold over 43% of all financial wealth in America. More than double what they held 30 years ago. That can't be justified. Not by any moral or logical standard.

This obscene concentration of wealth causes poverty and economic instability. Of course, you will deny it. Go ahead. Make my day.

[-] 0 points by Fedup15 (30) 12 years ago

To the extent the wealth was accumulated dishonestly or the pay was not based on performance and awarded for the wrong reasons then its wrong. The job dislocations that have occurred are due to producivity gains so that companies can compete on the global stage. The US workers are between a rock and a hard place due in part for these factors. The wealth is being created by people who are able to capitalize on global opportunities and by entrepenuers whonare creating valuable new companies by innovation. Apple is an amazing example, Facebook too. Also Groupon and the list goes on and on. The wealth creation is enormous because the global markets are so vast, not like the past when trade and political barriers fragmented markets. I hope you are listening.

[-] 4 points by ModestCapitalist (2342) 12 years ago

I agree with a couple of your points. But wealth creation is a tricky concept. You have to measure the downside as well. For example: Deindustrialization. It wreaks havoc in just about every major city.

Apple and Facebook will get no kudos from me. If the creation of wealth were a balanced meal, Apple and Facebook would be the frosting on a slice of cake. Tasty but very little nutritional value.

We don't need anymore miniaturized screens that light up. We don't need anymore gimmicks to digitize our interactions.

We need food, shelter, transportation, health, fitness, security, and hope for the future. We need a reasonable distribution of buying power. Otherwise, the real benefits of progress will be hoarded by a tiny minority.

That being said, society in general was better off 30 years ago. Much better off.

[-] 0 points by Fedup15 (30) 12 years ago

I do not disagree, and i too wish we could go back to a simpler time..

[-] 2 points by nucleus (3291) 12 years ago

Tax rates and economic growth are inversely proportional. The highest growth in US history was when the top tax rates on were 70-90%. During that time we paid the debt down fro m120% of GDP (1945) to 30% (1980). Then Reagan slashed taxes on the rich and tripled the national debt, a strategy that has been used as a model by politicians and their corporate masters ever since.

[-] 2 points by Fedup15 (30) 12 years ago

Clinton administration with a republican congress enjoyed tremendous growth with relatively low taxes. And balanced the budget

[-] 2 points by looselyhuman (3117) 12 years ago

Ok, let's go back to Clinton-era tax policies. I prefer Eisenhower or Nixon, but Clinton is a start.

[-] 0 points by Fedup15 (30) 12 years ago

Once the economy startsbtonexpand then we will go back to Clintons taxes, Clinto outlines that strategy in his new book.