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A glaring sign of a broken system



July 12, 2012 – Comments (5)

"In 1992, the 400th richest person in America made $24 million.

In 2007, the 400th richest person in America made $138 million (or $87 million, inflation-adjusted).

Now, that almost certainly wasn't the same guy. There's a lot of churn at the top of the money pyramid. In all of the 1990s, only 25% of the Fortunate 400 made more than one appearance. But the overall message is the same. The rich keep getting richer.

According to the IRS, which recently released 2009 data from the 400 richest individual income tax returns, the real runaway growth in wealth has come from capital gains. In the last years of the bubble, the "Fortunate 400" made nearly half their income from capital gains (a.k.a.: profit from the rising value of an investment, such as stocks or property) and less than 10% of their income from old-fashioned wages."

In other words instead of adding something of value and substance to society, the only way to gain wealth was to swindle it from some sucker who thought they were going to get rich the same way.  And then we wonder why our economy is not growing. We wonder why the markets are so volatile. "The rich create jobs" Yea right.  What jobs?  Investment brokers? Accountants to lower their effective tax rates to 15%.  Bankers to handle their offshore accounts?

Oh and lets not forget that capital gains tax rates were lowered over this same period.  Our economy is suffering a death from 1000 cuts. And our political leaders are holding the razor blades. 

5 Comments – Post Your Own

#1) On July 13, 2012 at 12:43 AM, awallejr (35.58) wrote:

Ticks me off that the Kudlowites keep arguing how we must keep taxes on the rich lower because they are the supposed "job creators" and then they whine how the economy is weak WHILE Obama kept the tax rates low on the rich.

These charts are so telling.  Any household earning less than $250,000 needs to think whose agenda in the end helps them.

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#2) On July 13, 2012 at 1:36 AM, Valyooo (33.59) wrote:

The rich are job creators....just not the top 0.001%.  The top 1-2% most definitely are though.


Also, if the governent stopped changing tax stuff so much, there would be less money shifting jobs draining our society

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#3) On July 13, 2012 at 1:37 AM, Valyooo (33.59) wrote:

Its definitely not the guy on his 98th week of unemployment creating jobs

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#4) On July 13, 2012 at 10:52 AM, miteycasey (28.91) wrote:

While you're correct that it's the top 1% who create jobs where are those jobs? Interest rates are at all time lows but job growth hasn't mushroomed.

 IMHO taxing the 1% capital gains would not hurt job growth because they aren't creating jobs in this environment anyway. When the environment improves, wheather the capital gains tax is 15%/20%/35%, the top 1% is going to create jobs. That's what they do.

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#5) On July 13, 2012 at 6:21 PM, dbjella (< 20) wrote:

If you increase taxes on the 1%, then what would you do with the money?....reduce the deficit...paydown debt.  LMAO

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