Why the rich have all the money and pay lower taxes than ever

From Robert Reich:

The American economy is more than twice as large now as it was thirty years ago. So where did the money go? To the top. The richest 1 percent’s share of national has doubled – from around 9 percent in 1977 to over 20 percent now. The richest one-tenth of 1 percent’s share has tripled. The 150,000 households that comprise the top one-tenth of one percent now earn as much as the bottom 120 million put together.

Given this explosion of income at the top you might think our tax system would demand a larger share from them. But you’d be wrong. You’re not taking account of the power of the super rich. As income and wealth have risen to the top, so has political power. As a result, their taxes have plummeted.

From the 1940s until 1980, the tax rate on the highest earners in America was 70 percent or higher. In the 1950s, it was 91 percent. Even if you include deductions and credits, the rich were paying a far higher share of their income than at any time since.

And that money the government does bring in? It’s not being spent on making our lives better, or giving kids better opportunities. It’s spent blowing up innocent people half way around the world. That’s why your Social Security and Medicare will be cut.

3 Comments

  1. Ian

    I place a lot of blame on modern day indentured servitude: too much debt from credit.

  2. Wage slaves! This is one of my pages on my blog…

    http://lobotero.wordpress.com/will-the-addict-return/

  3. Oh crap….wrong page…..another brain fart!

    http://lobotero.wordpress.com/american-inner-addict/