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The Falling Fortunes of the One Percent
CNBC ^ | 07/21/2012 | Robert Frank

Posted on 07/21/2012 12:21:08 PM PDT by SeekAndFind

The presidential election has given us two myths about the rich. First, that their incomes, and income inequality, are at all-time highs. Second, that the wealthy pay less in taxes than ever, and lower taxes than the rest of us.

A recent report from the Congressional Budget Office, however, suggests that both may be false.

Let’s consider income first. Between 2007 and 2009, after-tax earnings by Americans in the top one percent for income fell 37 percent. On a pre-tax basis they fell 36 percent in the same period.

That may sound like a minor haircut for One Percenters compared to people who lost their jobs. But when you take into account federal transfers, assistance and taxes paid, the incomes of the bottom 20 percent grew by 3 percent, while it fell a modest 2 percent for the middle 20 percent.

In other words, the incomes of the top one percent fell 18 times more than the incomes for the middle class at the start of the recession.

The result of this big drop at the top was that their share of the country's total income also fell. In 2007, the top one percent earned 16.7 percent of all after-tax income. In 2009, that portion fell to 11.5 percent.

Inequality, in other words, fell during those years. We are now in an age of High-Beta Wealth, where the incomes of the One Percent have become far more manic and prone to wild drops than the rest of the country.

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


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; News/Current Events
KEYWORDS: rich; taxes; wealthy


1 posted on 07/21/2012 12:21:17 PM PDT by SeekAndFind
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks SeekAndFind.
2 posted on 07/21/2012 12:28:10 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: SeekAndFind

Looks like the Bottom Quintile group increase means they are getting only 3% of what the “rich” have lost....hhmmmm....wonder how much GOVERNMENT got?


3 posted on 07/21/2012 12:46:47 PM PDT by goodnesswins (What has happened to America?)
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To: SeekAndFind

What the freeloader segment of the population fails to understand is that they are stranggling the productive segment of the population. The goose that laid the golden eggs is dying.


4 posted on 07/21/2012 2:34:33 PM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Opinionated Blowhard

And from CNBC no less!

Click on the link and read the comment from the pathetic losers who watch/read CNBC.


5 posted on 07/21/2012 2:52:24 PM PDT by my small voice (A biased media and an uneducated populace is the biggest threat to our nation.)
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To: Opinionated Blowhard

What is going to be dangerous, is when the Grasshopper section of society strangles the Ants out of existence.

And then the Checks and Food Stamps just stop. . . .

Hint: this is the REAL root of the interest of the “Zombie Apocalypse”: the eaters with the hunger that cannot be sated, burst out and attack the rest of us. . .


6 posted on 07/21/2012 3:08:20 PM PDT by Salgak (Acme Lasers presents: The Energizer Border. I **DARE** you to cross it. . . .)
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7 posted on 07/21/2012 3:08:43 PM PDT by RedMDer (https://support.woundedwarriorproject.org/default.aspx?tsid=93destr)
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