Few richs and more poors
Do you remember what we said in “The invisible racism” about richs and poors? On December 15, the New York Times reported:
The increase in incomes of the top 1 percent of Americans from 2003 to 2005 exceeded the total income of the poorest 20 percent of Americans, data in a new report by the Congressional Budget Office shows.
The poorest fifth of households had total income of $383.4 billion in 2005, while just the increase in income for the top 1 percent came to $524.8 billion, a figure 37 percent higher.
The total income of the top 1.1 million households was $1.8 trillion, or 18.1 percent of the total income of all Americans, up from 14.3 percent of all income in 2003. The total 2005 income of the three million individual Americans at the top was roughly equal to that of the bottom 166 million Americans, analysis of the report showed.
These statistics come from “Historical Effective Federal Tax Rates: 1979 to 2005” which update the series of historical effective tax rates estimated by the
Congressional Budget Office (CBO) by providing values for an additional calendar year.
In 2005 compared with its rate in 2004, the overall effective tax rate rose by
0.4 percentage points in 2005: to 20.5 percent from 20.1 percent.
Part of that increase comes from real bracket reep, the tendency of effective income tax rates to rise as income grows faster than inflation, causing more income to be taxed in higher brackets. An upward shift in the income distribution also contributed to the increase. The rise in effective tax rates was lower than otherwise would have been expected, however, because income from capital gains, which faces lower tax rates than most other income, grew more rapidly than other forms of income, driving down the effective rate.
The effective corporate income tax rate also rose, by 0.5 percentage points, reflecting rapid growth in corporate profits and the taxes owed on those profits.
What does it mean? Corporations and rich people, become richer than yesterday, and normal and poor people become poorer than yesterday.
In this way we’ll go towards a society broken in two parts: the first will be very little but powerful, the second will be very large but without money, home, food, on the border of survival.