Thursday, February 24, 2011

Shifting Taxes onto the Working Class

The Marginal Tax Rate on the Highest Earners Has Dropped.

While Tax Revenue as a % of GDP has remained consistent.

The 'dark matter' in the equation is that the working class(*) has had to take up the slack in taxation from the super wealthy. For most of us, this comes about as 'fees'. I do understand, but not agree with, the strain of misplaced anger towards the public sector. The working classes have seen their tax burden increase over the last generation, but it is brought to them by the same folks who brought the world the financial crisis of 2008. Not teachers or snowplow drivers.

1'JEFF GUNDLACH: The US Economy Is A Complete Horror' - Business Insider
(*) Substitute Middle Class if one wishes, it is America where there is no Working Class.(TM)

1 comment:

The Arthurian said...

Purple, you picked out the best two graphs from that Gundlach link.

Note that his second slide shows total debt (public and private). But his third and fourth and fifth and sixth and seventh (and maybe more) consider only the government debt.

Government debt is small in comparison with private-sector debt. The people who complain loudest about debt all seem to miss the fact.

God, that series of slides just goes on and on. The purpose of looking at the numbers is to understand the past. From the link I understand only that we should all be very depressed now. That's not helpful at all.

Good post.