Until the 1980s, corporate CEOs were paid, on average, 30 times what their typical worker was paid. Since then, CEO pay has skyrocketed to 280 times the pay of a typical worker; in big companies, to 354 times.
Meanwhile, over the same thirty-year time span the median American worker has seen no pay increase
HAPPY TAX DAY, AND WHY THE TOP 1% PAY A MUCH LOWER TAX RATE THAN YOU
It’s tax time again, April 15, when our minds turn toward paying the taxes we owe or possibly getting a tax refund. But what we don’t think about enough is whether our tax system is fair. The richest 1 percent of Americans are now getting the largest percent of total national income in almost a century. So you might think they’d pay a much higher tax rate than everyone else.
But you’d be wrong. Many millionaires pay a lower federal tax rate than many middle-class Americans.
Some don’t pay any federal taxes at all. That’s because they‘re allowed to deduct from their taxable income such things as large interest payments on mortgages for huge homes, also the costs of business entertainment and conferences (aka vacations at golf resorts), and gold plated health care plans.
Some also take advantage of tax loopholes that let them park some of their earnings in offshore tax havens like the Bahamas or the Netherlands Antilles.
And other loopholes that allow them to treat some income as capital gains – subject to a much lower tax rate than ordinary income. If you happen to be a hedge-fund or private-equity manager, there’s a capital gains loophole designed especially for you.
Consider the Social Security payroll tax and the situation is even more lopsided. That tax applies to every dollar of income up to a cap — which this year is $117,000. Anything earned above the cap is not subject to Social Security taxes at all – meaning anyone with a high income pays a much smaller percentage of it in Social Security taxes than most people do.
Put these all together and you see why Warren Buffet, the second richest person in America, pays a lower tax rate than his secretary, as he readily admits.
State and local taxes are even more regressive. The poorest fifth of Americans pay an average state and local tax rate of over 11 percent, while the richest fifth pay only 5.6 percent. This isn’t small change. State and local taxes account for about 40 percent of all government revenues.
Believe it or not, Republicans want to make all this worse by cutting taxes on the wealthy even more. Paul Ryan’s new budget doesn’t just slice Medicare, education, and food stamps. It also lowers the top federal tax rate to 25 percent.
When the rich are let off the hook in all these ways, the rest of America has to pay more in taxes to make up the difference – or have services cut because government doesn’t have the funds.
Happy Tax Day!
"Twenty-five profitable Fortune 500 companies, some with a history of tax dodging, spent more on lobbying than they paid in federal taxes between 2008 and 2012, according to Public Campaign analysis of data from Citizens for Tax Justice and the Center for Responsive Politics. Over the past five years, these 25 corporations generated nearly $170 billion in combined profits and received $8.7 billion in tax rebates while paying their lobbyists over half a billion ($543 million), an average of nearly $300,000 a day."
Lost among the complaining about McCutcheon and Citizens United has been any recognition that both those decisions were quite in the spirit of a far more important decision, one that despite its importance is essentially unknown: Buckley v Valeo (1976). This case challenged the 1974 Federal…
Riva Tritone Via, two-engine-yacht, 1958. Ordered by HSH Rainier de Monaco and Grace Kelly. One of 26 ever built. Via rmauctions
1842 Pietro Riva began building boats at Sarnico, Lake Iseo. By the 1930s, the firm was constructing race boats under his grandson. In 1946 Serafino’s son Carlo designed a mahogany runabout, Corsaro, which was modeled after Chris-Craft’s coveted motors that ushered in a new era of yachting elegance. The Tritone, launched in 1950, was an instant success with the European jet set. Source