Category: News

There’s an increased push to take more money away from rich people and most don’t feel bad about it (on the contrary, they think confiscating other peoples money is a moral imperative) because they’re envious-jerks and view the rich as greedy-jerks so it’s a battle between envy and greed, jerk vs jerk. The reality is more nuanced of course, but that doesn’t persuade as many people to the argument of taking rich peoples money away because they’re not doing enough for us.

I myself am a Trust-Fund baby: My parents Trust, that I will Fund them [badumcheh]. But the vast majority of millionaires in this country are not Paris Hilton type heirs to their fortunes. They earned their money.

Roughly 80 percent of millionaires in America are the first generation of their family to be rich. They didn’t inherit their wealth; they earned it. How? According to a recent survey of the top 1 percent of American earners, slightly less than 14 percent were involved in banking or finance.

Roughly a third were entrepreneurs or managers of nonfinancial businesses. Nearly 16 percent were doctors or other medical professionals.

Lawyers made up slightly more than 8 percent, and engineers, scientists and computer professionals another 6.6 percent.

Sports and entertainment figures — the folks flying in on their private jets to express solidarity with Occupy Wall Street — composed almost 2 percent.

By and large, the wealthy have worked hard for their money. NYU sociologist Dalton Conley says that “higher-income folks work more hours than lower-wage earners do.”

Because so much of their income is tied up in investments, the recession has hit the rich especially hard. Much attention has been paid recently to a Congressional Budget Office study that showed incomes for the top 1 percent rose far faster from 1980 until 2007 than for the rest of us. But the nonpartisan Tax Foundation has found that since 2007, there has been a 39 percent decline in the number of American millionaires.

Among the “super-rich,” the decline has been even sharper: The number of Americans earning more than $10 million a year has fallen by 55 percent. In fact, while in 2008 the top 1 percent earned 20 percent of all income here, that figure has declined to just 16 percent. Inequality in America is declining.

As for not paying their fair share, the top 1 percent pay 36.7 percent of all federal income taxes. Because, as noted above, they earn just 16 percent of all income, that certainly seems like morethan a fair share.

Maybe Warren Buffett is paying a lower tax rate than his secretary, as he claims. But the comparison is misleading because Buffett’s income comes mostly from capital gains, which were already taxed at their origin through the corporate-income tax.

Moreover, the Buffetts of the world are clearly an exception. Overall, the rich pay an effective tax rate (after all deductions and exemptions) of roughly 24 percent. For all taxpayers as a group, the average effective tax rate is about 11 percent.

Beyond taxes, the rich also pay in terms of private charity. Households with more than $1 million in income donated more than $150 billion to charity last year, roughly half of all US charitable donations. Greedy? It hardly seems so.

Poor people assault, rape and murder more than rich people, yet you don’t hear anyone stupid enough to smear the economic lower class as animalistic brutes whom require fascistic control – yet rich people steal less than poor people and the prevailing argument is that socialistic control over them is required to set things right.

No doubt dishonest or unscrupulous businessmen have gotten rich by taking advantage of others. And few of us are likely to lose much sleep over the plight of the rich.

But shouldn’t public policy be based on something more than class warfare, envy and stereotypes?