Only 74 Americans Make More Than $50 Million A Year.

[DearAbby]

Now for some really scary breaking news, from the latest payroll tax data.

Every 34th wage earner in America in 2008 went all of 2009 without earning a single dollar, new data from the Social Security Administration show. Total wages, median wages, and average wages all declined, but at the very top, salaries grew more than fivefold.

Not a single news organization reported this data when it was released October 15, searches of Google and the Nexis databases show. Nor did any blog, so the citizen journalists and professional economists did no better than the newsroom pros in reporting this basic information about our economy.

The new data hold important lessons for economic growth and tax policy and take on added meaning when examined in light of tax return data back to 1950.

The story the numbers tell is one of a strengthening economic base with income growing fastest at the bottom until, in 1981, we made an abrupt change in tax and economic policy. Since then the base has fared poorly while huge economic gains piled up at the very top, along with much lower tax burdens.

More:
http://www.tax.com/taxcom/taxblog.nsf/Permalink/UBEN-8AGMUZ?OpenDocument

[NYC_SKP]

1. K & Wow.

"...but at the very top, salaries grew more than fivefold."

:wow:

[Orrex]

2. Dammit

Another $4.98, and next year I can bump that list up to 75.


Watch for it!

[pnwmom]

3. Is this so shocking really? What am I missing?

Every 34th wage earner means about 3 in 100, right?

So this is saying that of 100 people who earned wages in 2008, 3 earned no wages in 2009.

What about retirees? Parents who take time off to care for children? Or anyone else who quits work for some reason -- as opposed to being let go. Where do these people fit in those numbers?

In other words, haven't there always been some people who voluntarily stopped working and earned wages one year and not the next?

[Angry Dragon]

4. I would say that 74 number is rather low

I bet that does not count bonuses, investments, trusts, etc.

[leveymg]

5. Are you sure about that #? There are more than 400 billionaires in the U.S.

Their average net worth is $3.5 billion. I think virtually all these people realize a return far in excess of only .5%/year on their capital. http://finance.yahoo.com/career-work/article/109029/worlds-billionaires-2010

This year the World's Billionaires have an average net worth of $3.5 billion, up $500 million in 12 months. The world has 1,011 10-figure titans, up from 793 a year ago but still shy of the record 1,125 in 2008. Of those billionaires on last year's list, only 12% saw their fortunes decline.

U.S. billionaires still dominate the ranks — but their grip is slipping. Americans account for 40% of the world's billionaires, down from 45% a year ago.

The U.S. commands 38% of the collective $3.6 trillion net worth of the world's richest, down from 44% a year ago.

Of the 97 new members of the list, only 16% are from the U.S. By contrast, Asia made big gains. The region added 104 moguls and now has just 14 fewer than Europe, thanks to several large public offerings and swelling stock markets.

[subterranean]

6. The figure is only for wages. It does not include capital gains and other investment income.

By the way, the average wage of those 74 people was $518 million in 2009. Some people are doing quite well in this recession. Probably many of the same people who caused it.

[leveymg]

7. Thnx for that clarification. Ill-gotten gains, in many cases, I agree.

[exboyfil]

8. Even just wages I think the number is

wrong.

Grants of stock options should be taxed at the fair value of the option at the time it was granted.
A market exists for options so these should be valued.

Capital gains and dividend income should be taxed at the same rates as personal income. Why do wage slaves have to pay a much higher marginal tax? A family making up to $105K in Iowa faces nearly a 48% marginal tax when state, federal, and both sides of Social Security/Medicare are considered. Even excluding the employer side of S.S./Medicare you are still at 40%.

Dividends at 15%?
Capital gains at 15%?
Federal bite for wage slave making up to about $105K at 40%
Federal bite for wage slave making over about $105K until next tax bracket at 25% (thanks to cap on Social Security)

I think the corporate tax rate is appropriate, but loopholes need to be closed.

[SoCalDem]

9. and righties won't rest until 50 million make $74 a year

:)