Why wealthy Americans’ delusions about the poor are so dangerous

[xchrom]

http://www.salon.com/2015/01/23/why_wealthy_americans_delusions_about_the_poor_are_so_dangerous_partner/



American politics are dominated by those with money. As such, America’s tax debate is dominated by voices that insist the rich are unduly persecuted by high taxes and that low-income folks are living the high life. Indeed, a new survey by the Pew Research Center recently found that the most financially secure Americans believe “poor people today have it easy.”

The rich are certainly entitled to their own opinions — but, as the old saying goes, nobody is entitled to their own facts. With that in mind, here’s a set of tax facts that’s worth considering: Middle- and low-income Americans are facing far higher state and local tax rates than the wealthy. In all, a comprehensive analysis by the nonpartisan Institute on Taxation and Economic Policy finds that the poorest 20 percent of households pay on average more than twice the effective state and local tax rate (10.9 percent) as the richest 1 percent of taxpayers (5.4 percent).

ITEP researchers say the incongruity derives from state and local governments’ reliance on sales, excise and property taxes rather than on more progressively structured income taxes that increase rates on higher earnings. They argue that the tax disconnect is helping create the largest wealth gap between the rich and middle class in American history.

“In recent years, multiple studies have revealed the growing chasm between the wealthy and everyone else,” Matt Gardner, executive director of ITEP, said. “Upside-down state tax systems didn’t cause the growing income divide, but they certainly exacerbate the problem. State policymakers shouldn’t wring their hands or ignore the problem. They should thoroughly explore and enact tax reform policies that will make their tax systems fairer.”

[yuiyoshida]

1. sure are lots

of swimming pools in that photo. Let me guess, all those houses have bathtubs. I wish I had a bathtub. Living in an apartment with only a shower, sucks.

[el_bryanto]

2. The problem with capitalism is that what capitalists want is generally

inimical to the continuing functioning of a capitalist economy. Regressive tax rates sound great to the wealthy, convinced as they are that they are shouldering the burden for everybody else. But they drain the economy far more than taxes on the wealthy.

Every dollar of tax relief you give a working class or middle class person goes right back into the economy. Every dollar you give a wealthy person could go anywhere. It might go towards investment - it just as easily might go towards pointless luxuries that do little to stimulate the economy.

I am a capitalist, but you need a strong central and state government to offset it.

Bryant

[grahamhgreen]

3. If they really believed it, they would choose to be poor.

[Solly Mack]

4. K&R