As the tax rate for the top earners in America went up between 2007-2009, tax revenues fell. Their tax rate went up from 19.4% to 21% while tax rates from the lowest two quintiles dropped from -5.8 to -9.3%. Negative! That means the bottom 40% of earners in this country got more money from the government than they paid in taxes. (Full article).
“The top 20 percent of earners — the top quintile — bore 67.9 percent of the federal tax burden in 2009. The middle quintile paid 9.4 percent, while the lowest paid .03 percent of the federal tax burden”. These numbers speak for themselves. And more “The top 1 percent of earners’ pre-tax income dropped 36 percent between 2007 and 2009, while the four lowest quintiles saw a loss of only about 5 percent”.
Income disparities are not growing, as the wealth is spread the gap between the rich and the poor shrinks, but so does the economy. Everyone’s income dropped over the past few years, but the top 1% dropped more than anyone else. People need to realize that when the top earners earn more they are taking us along for the ride. Their success is our success. Their failure is our failure. Yes, we can make income inequality shrink as long as we are willing to shrink our economy, and do without technological advance. We will all be worse off, but we will be more equal in monetary terms. If that is the goal of the left then fine, but just realize what they are actually trying to achieve.