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Five myths about millionaires : Challenging everything you think you know.
Washington Post ^ | 09/25/2011 | John Steele Gordon

Posted on 09/25/2011 6:52:23 PM PDT by SeekAndFind

This past week, President Obama tried to sell his new “millionaires’ tax” to the Rust Belt. “What’s great about this country is our belief that anyone can make it,” he said in Cincinnati on Thursday, praising “the idea that any one of us can open a business or have an idea that could make us millionaires.” But who are the millionaires Obama is talking about? And will a tax on them help the economy? Let’s examine a few presumptions about the man with the monocle on the Monopoly board.

1. Millionaires are rich.

Being rich has gotten more expensive. A $1 million fortune was unusual in the early 19th century. The word “millionaire” wasn’t even coined until 1827 by novelist (and future British prime minister) Benjamin Disraeli. In 1845, Moses Y. Beach, editor of the New York Sun, published a small pamphlet called “Wealth and Biography of the Wealthy Citizens of New York City.” The price of admission to Beach’s list, which was wildly popular, was a mere $100,000.

By the time the first Forbes 400 list of the richest people in America was published in 1982, the smallest fortune featured was $75 million. There has been so much wealth creation in the past 30 years — much of it thanks to the microprocessor behind modern-day fortunes such as Dell, Microsoft and Bloomberg — that only billionaires are on the list. Today, $1 million in the bank generates only about $50,000 per year in interest. That isn’t chump change, but it’s roughly equal to the 2010 median household income.

2. Millionaires think they’re rich.

“Rich,” like “poor,” is a relative term. A family living on the American median income of $50,000 a year might think that one living on $500,000 is rich.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; News/Current Events
KEYWORDS: bho44; classwarfare; millionaraires; myths; rustbelt; socialists

1 posted on 09/25/2011 6:52:26 PM PDT by SeekAndFind
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To: SeekAndFind

The 5 Myths about Millionaires:

1. Millionaires are rich.

2. Millionaires think they’re rich

3. Millionaires pay proportionately less income tax than poorer people.

4. Millionaires share the same political beliefs.

5. Obama’s “millionaires’ tax” won’t seriously limit investment.

CLICK ABOVE LINK FOR THE DETAILED EXPLANATIONS AS TO WHY THEY ARE MYTHS.


2 posted on 09/25/2011 6:54:46 PM PDT by SeekAndFind (u)
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To: SeekAndFind

After reading this, I really feel sorry for them and I hope I never became a millionaire.


3 posted on 09/25/2011 6:57:34 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: SeekAndFind

“what’s great about this country is our belief that anyone can make it”

that’s just amusing coming from a guy talking about how he wants to take their money... therefore making the possibility of ‘making it’ even less likely

wouldn’t this be the definition of crushing the American dream??


4 posted on 09/25/2011 7:01:17 PM PDT by sten (fighting tyranny never goes out of style)
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To: SeekAndFind

5 posted on 09/25/2011 7:05:24 PM PDT by Bean Counter (Obama got mostly Ds and Fs all through college and law school. Keep repeating it.....)
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To: dragnet2

I don’t feel discouraged from reaching millionaire status, I do feel that so long as the kids aren’t spoiled, that’s what counts.


6 posted on 09/25/2011 7:09:29 PM PDT by Morpheus2009
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To: Bean Counter

I like that poster! And dollars to donuts the guy didn’t inherit his wealth, either. Looks like a hard-working dude.


7 posted on 09/25/2011 7:09:44 PM PDT by boop ("Let's just say they'll be satisfied with LESS"... Ming the Merciless)
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To: SeekAndFind
“What’s great about this country is our belief that anyone can make it,” he said in Cincinnati on Thursday, praising “the idea that any one of us can open a business or have an idea that could make us millionaires.”

All you have to do is donate to my campaign and we'll give you a loan.

8 posted on 09/25/2011 7:10:17 PM PDT by ari-freedom (Cain all the way)
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To: SeekAndFind
“What’s great about this country is our belief that anyone can make it,” he said in Cincinnati

And what's even greater is that I can take it away from them. (The ones who are stupid enough not to donate to my re-election funds, that is)

9 posted on 09/25/2011 7:16:13 PM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: SeekAndFind
Taxes on the rich are taxes on people who create jobs. And jobs are an unalloyed good thing for an economy. Excessively taxing the capital that makes the economy go is poor public policy.

Pinch me. I must be dreaming that I am reading this in the WaPo.

10 posted on 09/25/2011 7:19:01 PM PDT by Right Wing Assault (Dick Obama is more inexperienced now than he was before he was elected.)
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To: Morpheus2009

On a serious note, I personally would rather earn little nowadays, than perpetuate the funding for this controlling bloated government. The less I am forced to give them, the better.


11 posted on 09/25/2011 7:20:23 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Again, I agree with that as well, it’s true as well that you don’t have to be rich to live the happiest life. In my family, it was mostly board games like clue and fiddling around with other kids making monster movies or our own soundtracks with casette tapes and our kid skills at music. It was probably pretty cheap living compared to the entertainment some kids have nowadays.


12 posted on 09/25/2011 7:25:14 PM PDT by Morpheus2009
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To: SeekAndFind
Here's a thought: What is NPR's stand on this millionaire tax? I would expect them to be for it, however, a large portion of their private funding comes from millionaires who get a tax deduction on their donation. 0bama wants to eliminate that deduction.

"This program no longer brought to you by a generous donation from ...."

13 posted on 09/25/2011 7:55:32 PM PDT by reg45 (I'm not angry that Lincoln freed the slaves. I'm angry that Franklin Roosevelt bought them back.)
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To: boop

The one on the left has a body that’s worth a million bucks, so I guess they are both millionaires.


14 posted on 09/25/2011 7:57:49 PM PDT by reg45 (I'm not angry that Lincoln freed the slaves. I'm angry that Franklin Roosevelt bought them back.)
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To: SeekAndFind

We bought land in the middle of nowhere twenty years ago. IT was dirt cheap at the time. We paid it off in about ten years. Since then the area has exploded and the land has become worth several million. On paper, we are million heirs, but we are just as broke as we ever were.


15 posted on 09/25/2011 8:09:04 PM PDT by Boiling point (Cain / Palin 2012)
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To: SeekAndFind; dragnet2; sten; Bean Counter; Morpheus2009; boop; ari-freedom; Don Corleone; ...

Myth 6: It’s all just luck and being in the right place at the right time.

As for political beliefs, it’s how you make it that determines which party you’re a part of, not just personal opinion or upbringing. IF you make it via working on a business, you’re apt to be more conservative; if you make it by happenstance and ‘being at the right place at the right time’ and know how to market yourself, you’re more likely to be liberal. Half of Wall Street spends time getting lucky (in more ways than one) and so they are apt to be more liberal. More than anything, if you understand that you have to sweat to get your coin, you are more eager ot keep it for yourself.


16 posted on 09/25/2011 8:10:27 PM PDT by Niuhuru (The Internet is the digital AIDS; adapting and successfully destroying the MSM host.)
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To: Boiling point

There’s a difference between assets and liquid. You have millions worth of assets, but not millions in the bank, in cash that you can withdraw any time.


17 posted on 09/25/2011 8:11:56 PM PDT by Niuhuru (The Internet is the digital AIDS; adapting and successfully destroying the MSM host.)
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To: SeekAndFind

Millionaire farmers abound here, over a million in tillage and harvesting equipment, a 60X100 shop, $100,000 in grain bins, 3500 acres of dryland wheat farm, living in a double wide and driving a four year old pickup. Net worth well over 2 million, though, it just isn’t liquid assets—its the means of production.


18 posted on 09/25/2011 8:31:48 PM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: Niuhuru

And if your wealth was inherited, you are more likely to be a leftist.


19 posted on 09/25/2011 8:58:24 PM PDT by reg45 (I'm not angry that Lincoln freed the slaves. I'm angry that Franklin Roosevelt bought them back.)
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To: SeekAndFind
Today, $1 million in the bank generates only about $50,000 per year in interest.

Can someone please direct me to the bank that's paying 5 percent interest? Thanks!
20 posted on 09/25/2011 9:01:34 PM PDT by irishjuggler
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To: reg45

Usually, yes, because you don’t understand the concept of ‘process,’ which makes a huge difference in how you view money and how it’s earned.


21 posted on 09/25/2011 9:15:22 PM PDT by Niuhuru (The Internet is the digital AIDS; adapting and successfully destroying the MSM host.)
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To: aflaak

Ping


22 posted on 09/25/2011 9:15:39 PM PDT by r-q-tek86 ("It doesn't matter how smart you are if you don't stop and think" - Dr. Sowell)
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To: irishjuggler

Yeah, my bank pays 0.15% on savings accounts, but I think for 1 million I might get the 0.3%. $3000 per year!


23 posted on 09/25/2011 11:34:05 PM PDT by boop ("Let's just say they'll be satisfied with LESS"... Ming the Merciless)
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To: boop
Yeah, my bank pays 0.15% on savings accounts

My C.U. pays 0.17% and advertizes their home equity loans at 3.40%, 20 times what they pay out on savings accounts.

24 posted on 09/26/2011 4:23:08 AM PDT by Graybeard58
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To: SeekAndFind

Most owners of small businesses are taxed on their business income, but need to either to leave the profits in the business to pay their bills or lend it back to the business because of cash flow needs.

So they are not necessarily living on this high income, just taxed on it. Often there is not enough cash flow to pay the profits to the owners due to investment in receivables, inventory and fixed assets.

Dividends and capital gains are subject to double taxation - both at individual and corporate levels. So the 15% tax rate on the indivual is actually 50% on the total taxpayer.


25 posted on 09/26/2011 5:22:33 AM PDT by ADSUM (Democracy works when citizens get involved and keep government honest.)
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To: SeekAndFind

This from the Obama Post?
dogs and cats sleeping together time.

Guess this writer just figured out that he is a millionaire and is about to get hammered. Funny how the press will go along with punitive policies until it affects them.

Maybe he read the book, “The millionaire next door” and couldn’t refute it.

Another myth to add.
From former VP algore. If a person makes 250K per year for 4 years running that makes them a millionaire.

can’t make this stuff up. And he was 2nd in line for the office of the presidency.


26 posted on 09/26/2011 7:16:14 AM PDT by Texas resident (Hunkered Down)
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To: ari-freedom
Those teleprompter training wheels are never coming off. Barky is the Milli Vanilli of US Presidents. It would be fascinating to watch the behind the scenes preparation of his lines. Who really pulls Barky’s strings? Are they purposely destroying America for fun and profit or are they affirmative action twits?
27 posted on 09/26/2011 8:30:29 AM PDT by Reeses
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