Middle class is radically shrinking

[golfguru]

This post could belong in Economy, however this news also has vast political implications.

"The 22 statistics detailed here prove beyond a shadow of a doubt that the middle class is being systematically wiped out of existence in America.

The rich are getting richer and the poor are getting poorer at a staggering rate. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a blinding pace."



http://finance.yahoo.com/tech-ticker/the-u.s.-middle-class-is-being-wiped-out-here's-the-stats-to-prove-it-520657.html?tickers=^DJI,^GSPC,SPY,MCD,WMT,XRT,DIA

I can propose some remedies to this situation. More comments are invited.

>> Taxes should be increased radically on individuals making more than 3 times the national average.

>> Taxes should be eliminated on corporations operating in the USA.
Before you have a knee jerk reaction to this item, consider that 83% of stocks are
owned by 1% of people. Taxing corporations incentivizes them to move off shore, it
punishes lower level employees by reducing amount of money available, and it punishes
the lowly stock holder with his/her measly 401-k plan.

Let the real owners of corporations...that 83%...pay the tax as individuals. And if the top
level executives are paid exorbitant wages they will pay more as individuals. Stock bonuses
should be taxed as ordinary income every year based on current value and not as capital gains
deferred until sold.


>> Free trade is fine so long as it is FAIR TRADE. There are many subtle and not so subtle
barriers in other countries to US imports. Trade must be a level playing field.

[enough]

1. You would think some of these numbers could make the case for restoring the Bush tax cuts

on the richest Americans.

[golfguru]

2. Tax high earning individuals, not corporations

Corporate tax is shared by all including who own huge chunks of shares (ownership) and
those who own just a few shares, along with all the consumers and customers of
the corporations, and all employees of the corporation. Thus corporate tax is a NON-PROGRESSIVE tax.

A more fair tax is the one where those individuals who make the most pay the most.
At the end of food chain every corporation is owned by individuals and run by highly
paid individuals. These high earners should pay most of the tax, not the lowly share
owners with their 401-K's and the lower paid employees of the corporation, along with
every consumer to whom the corporate tax gets passed on to.

[boppers]

3. ...and Warren Buffet will pay himself a $1 salary.

Meanwhile, his cars, houses, jets, boats, vacations, clothes, meals. etc. will all be "corporate purchases", and not taxed.

FWIW, this kind of tax dodge is *already* quite common, there's no reason to encourage it more.

[golfguru]

4. It is ILLEGAL to write off cars..boats..vacations as

business deductions unless used for conducting business exclusively or partially.
My employer was caught doing this and had to pay back taxes.

Any individual who wants to break the law can always escape taxes...by cheating...
until caught.

Any corporation can cook their books and pay no taxes. But they are
then breaking the law and are subject to be caught and punished.

If I know anything about Warren Buffet, he is not likely to risk breaking any laws.