Comments on: Researchers blame government for widening wealth gap

By: Greg Kuperberg

Greg Kuperberg — Tue, 13 Dec 2011 04:35:42 +0000

ml1999 – In one sentence you’ve changed the subject in three ways. First, the issue isn’t federal income taxes, it’s taxes in general. They’re very different; everyone knows that federal income taxes are more progress than taxes are in general. Second, the issue isn’t the top 10%, it’s the top 0.1%. Again, those two are completely different; in fact taxes on salaried workers in the next 9% or the next 19%, largely make up for the tax cuts that have been granted to the top 1% and the top 0.1%. Third, the issue isn’t a matter of comparing a certain percentage of taxes to a certain percentage of people, it’s comparing how much people pay in taxes to how much money they make. The top 0.1% receive more than 10% of the income in America, so one would hope that they would pay at least that fraction of taxes, if not more.

It’s hardly possible for economists to humor reactions like yours. If they reported that ducks fly south in November, then you could equally well criticize it with the argument that geese fly north in March. There’s no contradiction, because you’re talking about something completely different than they are.

By: Rich Rifkin

Rich Rifkin — Tue, 13 Dec 2011 01:25:43 +0000

“Allegretto also wants higher state taxes for the “wealthy”. We’re at about 9.5% now, one of the tops in the nation.”

A strange thing about our brackets in California: if, after deductions, as an individual you make $46,766, you are in the 9.3% bracket. That does not change all the way up to $999,999 per year. But for those making $1 million a year or more (as individuals), the marginal rate jumps to 10.3%.

http://www.tax-rates.org/California/income-tax

By: ml1999

ml1999 — Mon, 12 Dec 2011 20:48:23 +0000

How many flaws are in these so-called studies?

The professors want a more progressive tax system. The bottom 47% pay zero federal taxes, which the top 10% pay approx. 70%. That seems pretty darn progressive to me.

Invest more in education. We tripled spending on education the past 4 decades. (I suggest we double the number of marriages.)

Did Allegretto or Stevens ever bother to fast in that 12-30 Million illegal immigrants affects the Supply curve? It also affects benefits, education, housing costs, etc.

Allegretto also wants higher state taxes for the “wealthy”. We’re at about 9.5% now, one of the tops in the nation. How far does he want us to go? And what happens when these super wealthy people feel that they are overtaxed, and pick up and move to Nevada, Arizona, or Florida, where the state tax is 0%?

Too many flaws.

Does Allegretto think that state and federal workers should have pay and health benefits that far outstrip what the average joe who pays their salary. Or does he think it’s OK for them to make 150% of what the average taxpayer makes? Does he also think it’s OK for fire and police to retire at 50 years of age? Humm, sounds like Greece to me.