
The news the other day that just
six people in the United States own as much stuff as
the bottom thirty percent of our country, coupled with an idiot commenter on someone else's blog, has made me want to point out something that cannot be pointed out enough: The rich are getting richer and the rich
are not you and me, and
never will be unless we start having a more fair society.
The comment was left
on a blog written by author/epic critic/guy Michael Offutt, who was writing about truthtelling and mentioned #Occupy Wall Street, and got, in response, a vituperative and incorrect comment from a deluded man who finds arguing on behalf of the selfish rich to be in his, and/or society's, best interests. Said
Jay Noel, a self-styled "sales and marketing warrior",
1% actually control anywhere between 38% - 42% of the nation's assets depending on which study you look at...Oh, and by the way, to get into that top 1%, you have to have an income of more than $343,000. Hardly middle class, but hardly a millionaire.
And a VAST majority of that 1% are people like doctors, dentists, school administrators, small business owners, insurance agents and actuaries, rocket scientists, and non-profit executives. They're all assholes?
...
Even if we took every single penny from every single millionaire and billionaire in this country, it still wouldn't even pay off our national debt!
The free market and true capitalism will never see it's full bloom until it's fair. That's what many protesters are asking for. And I can't agree more.
But heck, even those right-winger show hosts give a lot to charity. Even if it's just for the sake of a tax deduction. In fact, academic studies on the subject empirically show that Republicans give a higher percentage of their earnings than Democrats. And they give something even more important to charities: their time. They volunteer more as well.
...
Where to begin with that? There is so much misinformation and misunderstandings, and after I read that last night, I woke up to this:
Six Wal-Mart heirs are wealthier than U.S.' entire bottom 30%
That was
the headline on the LA Times site today, over an article that is well worth reading and hard to understand, as evidenced in part by the fact that sales and marketing
warriors don't get it.
We live in a country where the money and property of
six people at the top end outweighs, if put on a scale, the money and property of
one hundred million people.
The U.S. as this moment, 3:26 p.m. Friday afternoon, December 9, has 312,757,380 people. 30% of that group is 93,000,000 people.
Six people on this side. 93,000,000+ people on that side -- and the six people are heavier than the rest, when weighed by wealth.
Let's have an idea what that looks like. Numbers are so hard to grasp.
Here are
six people:
i i i i i i
I used
lower-case i
s because they kind of look like people.
Now, let's look at 93,000,000 people.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
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That's not actually 93,000,000 people. That's 5,920 people. If you take that 15,709 times, you get 93,000,000 people.
Those six people:
i i i i i i
Have more money and wealth than 15,709 groups of 5,920 people.
That's the 1%.
Some more statistics made real: The LA Times says:
The wealth of the 1% is about 225 times greater than that of the typical family, compared to 125 times in 1962, according to analysis from labor economist Sylvia Allegreto with UC Berkeley.
That seems dry, doesn't it?
So here's some more pictorial help.
This is rich vs. poor in 1962:
Poor:
$
Rich:
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Seem fair? Remember that old saying,
A rising tide lifts all boats?Here's rich vs. poor, 2011:
Poor:
$
Rich:
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Funny. That
poor boat doesn't seem lifted.
Today, in America, most people consider you rich if you make more than $150,000 per year. There is no definition of
rich, but in America, more than one-half of the people think you're "rich" if you make more than $150,000 a year. That is to say: If you earn $150,000 or more per year, more than half of all Americans would say you're
rich.
But that doesn't necessarily make you
rich.
The
median household income in 2009, according to the census, was $50,221. I always use
median in this context because it tells you
a lot, and what it tells you is
: one-half of all households in the United States, in 2009, earned less than $50,221.
Remember that old law school trope,
look to your left and look to your right? Well, look around the group of people you saw most recently: half of that group, in 2009, lived in a household that earned less than $50,221. For the year.
That's the 99% -- but not all of them, because only
half of all Americans lived below that line. The remainder, the
other half, lived
above $50,221, and that's Idiot Jay Noel's point, in part: Lots of people make lots of money, he says, and they're not
rich:
Oh, and by the way, to get into that top 1%, you have to have an income of more than $343,000. Hardly middle class, but hardly a millionaire.
That's what Idiot Jay Noel said. Let's look at that.
The highest median income in any locality in the United States is $248,355. That's in Hidden Hills, California. What that means, again, is that one-half of the people in Hidden Hills, California, make more than $248,355, while the other half makes less than that.
Which means that if you make $343,000, per year -- if you are in the 1%, then you make $100,000 or so more than the median income wherever you live.
I like pictures, so let's compare again. Here is the median income for the United States, as a whole:
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Half of all people make less than that.
Here is the median income in Hidden Hills, California:
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Half of the people in
Hidden Hills,
the wealthiest municipality in the U.S., make
more than that.
And here is how much income you have to have to get into the 1%.
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000
Only
1% of Americans make that much money, according to Idiot Jay Noel.
So are they
rich? That 1% who makes all those thousands
per year? Let's consider, by looking at what it is people pay on a day-to-day basis.
AAA
estimates that the average annual cost of owning a car is $6,114 per day, plus about 18 cents a mile driven.
At $50,000 per year, that uses up 12% of your
gross income. (Not counting the per-mile costs).
At $343,000 per year, that uses
1% of your income. (Hey! One percent!)
Of course, after paying that $6,114, the bottom half of America has $44,000 or so remaining (gross). The 1% has $337,000 remaining, gross.
What about housing costs?
The median rental in 2010, according to the Census, was $1,000 or so per month. So one-half of all apartments cost less than $1,000 per month. If you paid just $1,000 per month in housing costs, that would use 24% of the bottom-half's gross income. Meanwhile, it's just
3% of the income of the 1%.
And, of course, in real dollars, after a car and an apartment, the bottom half have $20,000...
gross, while the top 1%, driving that same car and renting that same apartment (likely!) have $325,000 left in their pockets.
Then there's food: the U.S. Census' average household grocery budget for a family of four on the "thrifty" plan, in 2010, was $118.10 per week. I can tell you, that is
extremely thrifty: back in about 2000, when I was just starting out, our weekly grocery budget for Sweetie and myself and three kids was about $100, and we
barely made that.
At $118.10 per week, the average household spends $6,141 on groceries. If you're the bottom 50%, that means another 12% of your income gone to
just barely get by on groceries. (To get an idea what that's like, read
this MSN article about a woman who tried to spend just $100 per week on groceries.) Again, that's only 1% of the top 1%'s income.
And, keeping track: if you have a car, and an apartment, and
food, that bottom 1% now has just $26,000 (gross) left. The top 1%: $319,000 still sittin' in the bank.
Now, Idiot Jay also mentioned paying taxes. There would, of course, be taxes to pay, right? Certainly on the top 1%. Using
the IRS Withholding Calculator, we can estimate the maximum tax bite for our family of 1%ers.
I assumed straight wages, no deductions of any sort -- one income per family. That's about as flat, (and unfair) a tax as you can get. Using those assumptions (two kids both tax deductible, standard deductions), the 1% family pays $81,933 in federal taxes.
That's a lot!
But not all that much, really. It's 23% of that family's income, sure, but remember, that's
sans deductions. Still, $81,933 is a hefty tax bite. I'll agree with that.
But after paying those taxes, our nondeducting, nontaxplanning 1% Family with a car, a modest apartment, and thrifty grocery habits still...
still has $237,607 (gross) wages remaining.
So presumably they will be able to make ends meet.
What about that bottom-halfer family across the hall? With the same criteria: 2 kids, no deductions beyond the standard deduction, their tax burden is $2,694 -- 5% of their total income.
(Which means that if a family earning $50,000 in income truly pays no taxes, it is because they have been given $2,694 in tax deductions and credits to offset that -- given that by politicians
you voted for.)
That same family, after taxes, with their car, apartment, and Ramen-noodle-based meal plan, has, after paying that tax, has only about $23,000 left (gross), after taxes.
So if both people, the 1% Family and the Poor Family, live
identical lifestyles, then a rough measure of the
disposable income left after basic needs are met and federal taxes paid is:
Poor family:
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000
1% family:
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
So, not rich, right?
Well, bullshit.
After meeting the
most basic of needs, the 1% family has
ten times the disposable income; if the two families lived identically, the 1% family has
$237,000 left over at the end of the year, which is why the rich get richer and the poor get poorer. You can't
invest or
make your money work for you when you have no money left over.
And let's not kid ourselves: the 1% are not living the same as the bottom 50%, not by a longshot.
Idiot Jay says:
And a VAST majority of that 1% are people like doctors, dentists, school administrators, small business owners, insurance agents and actuaries, rocket scientists, and non-profit executives. They're all assholes?
To which I say: Yes. Yes, they are, if they are not willing to contribute a little more to the effort of keeping our society one which does not provide for the worst-off among us, and not willing to shoulder a little more of the burden of contributing to that provision.
In that hypothetical 1% family, with the $237,000 left over, if you doubled their tax burden -- made them pay $162,000 in federal taxes -- they would still, after all that, be far better off than the poor person, but idiots like Jay object to doing that because it's not fair.
Fair is in the eye of the beholder. I think it's not fair that doctors can live in a gated community surrounded by a golf course and complain about being taxed while people starve to death in America and we provide $117 a week in food stamps, especially because you could take more of the doctors' and rocket scientists' money* and not hurt them.
Rocket Scientists aren't very likely to actually be in the 1%. The highest return on a tech education comes if you go to Caltech, which, on average, earns a person $1,713,000 over a 30-year career. That's an average of $57,100 per year over a 3o-year span. The mid-career median pay for a Caltech grad is only $120,000 -- half, of course, make more than that, but half make less.
That's the final idiot argument Idiot Jay makes: That you could tax the rich into submission and still do nothing:
Even if we took every single penny from every single millionaire and billionaire in this country, it still wouldn't even pay off our national debt!
That, of course, is an argument that starts from a false premise: That the
debt is solely the responsibility of the poor and social programs, and that it must be paid off
right now.
Leave aside
the consideration that actually paying off the national debt might be a terribly bad idea. The "
national debt" is not the deficit, which is presumably what Idiot Jay means; it's the accumulation of
all the deficits ever, including the ones that Ronald Reagan -- classic Keynesian Ronald Reagan-- ran up. The
current debt has been growing since 1836, so the responsibility for the amount of debt we have goes back nearly two centuries. It's not a liberal thing.
Deficits going
forward are hard to predict -- the US government runs an
aspirational budget, setting out what it (definitely) plans to spend and (hopefully) plans to bring in. But looking at
past deficits is easy.
The deficit was $1,300,000,000,000 in 2011. It was $1,290,000,000,000 in 2010.
So to make ends meet in fiscal 2011, the U.S. would have had to spend less and take in more, to the tune of $1,300,000,000,000. Again, leave aside some obvious points, like the fact
that we have spent $806,000,000 in Iraq alone since that fake war was started by Worst President Ever. That's $1,000,000,000 per year on Iraq alone.
$1,300,000,000,000
_______________
$1,000,000,000
= 1/1300 of our 2011 deficit was owing to Iraq
alone. That's why I'm not saying
much about that (except that if we hadn't spent all that money in Iraq, we'd have it for national health care without charging anyone a penny.)
What Idiot Jay and idiots like him want to say is that taxing the rich alone won't make up that deficit.
In part, that's
potentially true. The 1%, while they control one-half of all the money and property, only make
18% of the total wages -- probably (but I'm not sure) because the 1% aren't exactly W2 earners. (That 18% figure counts the cash value of such programs as Medicare and things like foodstamps as income, so the 82% earned by the other 99% includes the cash value of governmental programs, which is an
unfair way to measure it: if you're going to include the cash value of programs that hand money out, count the cash value of tax deductions for mortgage interest, among other things, and see how that changes the figure.)
(In fact,
the Washington Post has already done that: When government benefits and income from investments and the like are included, the 1%'s wages are $516,633 per year, which emphasizes what I said earlier: that 1% family with the $237,000 left over is investing that money and will make
even more in most years than they did the year before, leaving behind the lower half.)
I began by using as my population figure 312,757,380. That means that 1% of the population equals 3,127,573 people. Since they earn on average $516,633 per year in income, that means the top 1%'s gross income, on average, in a given year, is $161,580,783,501,540.
The
top marginal US tax rate is 35%--
you pay 35% of your income over $379,150 as a tax. So right now, the 1%'s top marginal taxes are:
$516,633 - $379,150 = $137,483 * 0.35= $48,119.
That's the amount of tax the 1% pays on their highest amount of income.
If we increased that marginal rate -- that
top marginal rate -- to 40%, then the average 1%er would pay slightly more:
$516,633 - $379,150 = $137,483 * 0.40 = $54,993 per year. Increasing the top marginal rate to 40% results in taking just $7,000 more per year from the 1%ers.
$7,000 more per year times all the one percenters=
$7,000 x 3,127,573 = 21,893,011,000.
More per year in tax revenues. Of course, that still leaves $129,978,106,989,000 in 2011 deficits alone to make up, but a modest increase in only the top marginal tax rate still cut the deficit by 1% (hey! There's that number again!) without hurting
anyone, really. They wouldn't even notice it. In fact, they wouldn't even notice
tripling that figure -- taking $21,000 more in top taxes from the highest earners, and thereby increasing the revenues by $63,000,000,000. Or
more. If you took
10 times the amount -- $70,0009 from each person, raising $218,930,110,000, or 10% of the total 2011 deficit, each 1% would still have tons and tons of money left over.
To see why that's so, consider this. Here is the average total income from all sources of a 1%-er:
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000
That's $516,000.
Here's that income after taking $70,000 away from it.
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000
See much of a difference? Me, neither.
It's easy to throw numbers around, until you understand what they
mean. Defending the right of the superrich to continue to be superrich while people starve around them demonstrates not liberty, not freedom, not fairness, but
ignorance of the worst sort.
We all have an obligation to make the world a better place. The 1% have the
means to do it, and can do so without hurting themselves. If you could save a man's life without in any way negatively impacting your own, and you did not do that, you would be, in Idiot Jay's words, an
asshole. (In my terms, you would be
evil.)
The 1% can do just that: they can
save lives and not even notice it. The fact that most of them are unwilling to do so, and that most of America is not willing to call them on it, makes me ashamed to live in this country.