Inequality and What   to do About It           drbob232@gmail.com
Income
Income Level Versus % of Population-2007               90000               80000               70000               60000In...
Income Growth 1979 to 2007
Wages Flat
Wages as % of Economy
Corporate Profits Risen Exponentially
Income Inequality Index , by CountryGINI =0, full equality; 1.0, full inequality
Worldwide Poverty Levels
70% of all
6%of allincome
12% of allincome
6%of allincome
Conclusions on Income• Income Distribution Counter to a Free  Enterprise, Democratic Society• Stifles Domestic Economic Gr...
Taxes            Income Share vs. Federal Income Tax Share40.00%                                             Income Share3...
Includes payroll taxes
Regressive Effect of
Total = federal ,state, and local taxes.
Total = Federal, state, and local taxes
Percent of Income Paid for All TaxesPayroll, Real Estate and Sales Taxes Make Total Tax Rates Similar forMiddle Class and ...
Conclusions on Taxes• Federal Income Tax Alone Still Somewhat  Progressive –But Not Enough• Regressive(same % for all inco...
Wealth
Greater Equality-Economic• Grow Economy /Restore 17 million  Jobs• Distributed Benefit
How Do You Create 17 Million Jobs?• Costs About $1.5 Trillion ($1500 billion) A Year• Who Has That?   -Government; $200 bi...
How to Move the $ to a U.S. Worker• Tax Breaks for Wealthy Hasn’t Worked• Tax the Wealthy, Govt. Pays the  Employee   - Ok...
Getting the $ to a U.S. Worker   The Key: Get Corporations, 1% to Spend on U.S. Job        Creating Activities• Increase T...
Grow Economy• American Jobs Act-near term• Change Corporate, Upper End Tax Rates to Spur•  U.S. Job Investment• Long Term ...
With Distributed Benefit• Increase Upper End Taxes (Income, Capital  Gains, Estate)• Low Rates for U.S Job Creating Invest...
Distributed Benefit ,con’d•   Positive Union Approach•   Change Home Mortgage Formula(earlier      loan principal payoff)•...
Restoring Equality-PoliticallyEquality of Voting and Influence- Review of Voter/Voting Impediments    ---Registration    -...
Political Equality-con’d- Post-Election Term Employment Restrictions- Lobbying Transparency- Mass Media Reforms; Free Elec...
Conclusions• Inequality Contributing to Economic  stagnation-Demand• Political Influence Inequality Has kept Status  Quo• ...
Inequality and What can be Done
Inequality and What can be Done
Inequality and What can be Done
Inequality and What can be Done
Inequality and What can be Done
Inequality and What can be Done
Inequality and What can be Done
Inequality and What can be Done
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Inequality and What can be Done

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  • All wages in 2011= $6.66T, Income of Top 1%= $1.72T = 26% of all wages.
  • Federal aftertax only
  • Includes Payroll Taxes
  • Inequality and What can be Done

    1. 1. Inequality and What to do About It drbob232@gmail.com
    2. 2. Income
    3. 3. Income Level Versus % of Population-2007 90000 80000 70000 60000Income Level 50000 40000 30000 20000 10000 0 0 20 40 60 80 100 Percent of Population
    4. 4. Income Growth 1979 to 2007
    5. 5. Wages Flat
    6. 6. Wages as % of Economy
    7. 7. Corporate Profits Risen Exponentially
    8. 8. Income Inequality Index , by CountryGINI =0, full equality; 1.0, full inequality
    9. 9. Worldwide Poverty Levels
    10. 10. 70% of all
    11. 11. 6%of allincome
    12. 12. 12% of allincome
    13. 13. 6%of allincome
    14. 14. Conclusions on Income• Income Distribution Counter to a Free Enterprise, Democratic Society• Stifles Domestic Economic Growth -Top 1% Earn the Same as Bottom 55% -2/3 of Population with less than $45,000 Income - Little for New Spending To Spur Growth• The $ Resources to Fix the Economy Are with the 1% and large Corporations
    15. 15. Taxes Income Share vs. Federal Income Tax Share40.00% Income Share35.00% Federal Income Tax Share30.00%25.00%20.00%15.00%10.00% 5.00% 0.00% Top 0.1% Top 1% Between 1 &5% Between 5% & 10% Between 10% & 25% Between 25% & 50% Bottom 50%
    16. 16. Includes payroll taxes
    17. 17. Regressive Effect of
    18. 18. Total = federal ,state, and local taxes.
    19. 19. Total = Federal, state, and local taxes
    20. 20. Percent of Income Paid for All TaxesPayroll, Real Estate and Sales Taxes Make Total Tax Rates Similar forMiddle Class and Wealthy
    21. 21. Conclusions on Taxes• Federal Income Tax Alone Still Somewhat Progressive –But Not Enough• Regressive(same % for all income levels) payroll, sales, and real estate taxes create similar overall rates for the Middle Class and the Wealthy.• Need to Address all taxation areas.
    22. 22. Wealth
    23. 23. Greater Equality-Economic• Grow Economy /Restore 17 million Jobs• Distributed Benefit
    24. 24. How Do You Create 17 Million Jobs?• Costs About $1.5 Trillion ($1500 billion) A Year• Who Has That? -Government; $200 billion a year would be a feat - Large Corporations; Holding 1.8T, Earning 1.5T a Year( after taxes) - Wealthiest 1%; Earning $1.0 T a year(after taxes)
    25. 25. How to Move the $ to a U.S. Worker• Tax Breaks for Wealthy Hasn’t Worked• Tax the Wealthy, Govt. Pays the Employee - Ok for Public Services - But for rest, not efficient; $ In from private sector, thru government, backout to private sector. - Most Job Loss in Private Sector
    26. 26. Getting the $ to a U.S. Worker The Key: Get Corporations, 1% to Spend on U.S. Job Creating Activities• Increase Tax Rates but Allow Lower Rates for U.S. Job Investment. -Credit for demand side- wages, profit sharing, child care, worker education -Credit for supply side- plant investment, hires• End Tax Breaks for Facility/Job Outsourcing - Tax Income as Earned , not when “returned “ to U.S. - Limit Foreign Tax Credit; Remove U.S. Sales Income from Calculation -Offshore Tax Haven Abuse; $100 Billion/Year
    27. 27. Grow Economy• American Jobs Act-near term• Change Corporate, Upper End Tax Rates to Spur• U.S. Job Investment• Long Term Infrastructure Work; Derivatives Tax• Change Anti-Competitive Laws and Regulations• Improve Education: public school capability and funding methods, preschool, community colleges, college loans, grants• Research and Planning
    28. 28. With Distributed Benefit• Increase Upper End Taxes (Income, Capital Gains, Estate)• Low Rates for U.S Job Creating Investments• Use $ to shore up Safety Nets.• Address Regressive Real Estate and Sales Taxes• Progressive Wealth Tax - Beyond Real Estate• State Income Taxes vs. Sales, Property Taxes
    29. 29. Distributed Benefit ,con’d• Positive Union Approach• Change Home Mortgage Formula(earlier loan principal payoff)• Less reliance on Real Estate Tax for School Funding• Address Excessive health care charges-price and method• Others?
    30. 30. Restoring Equality-PoliticallyEquality of Voting and Influence- Review of Voter/Voting Impediments ---Registration ---National Holiday ---Extend Early Voting- Limits on Private Campaign Contributions; Override Citizens United Case- Term Limits; Supreme Court, Congress
    31. 31. Political Equality-con’d- Post-Election Term Employment Restrictions- Lobbying Transparency- Mass Media Reforms; Free Election Campaign Air Time, Fairness Doctrine, One Station for Free Public Air Time- Independent State Commissions for Defining Congressional Districts- Others?
    32. 32. Conclusions• Inequality Contributing to Economic stagnation-Demand• Political Influence Inequality Has kept Status Quo• No single answer to Job Creation and Reducing Inequality• Many Initiatives/projects to Do

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