The really screwed up government of the United States is screwing up even more lately.
There is one way to save the US economy, raise wages.
Currently there is nothing wrong with the US tax code, except for the capital gains tax. The Capital Gains tax should only apply to the first $100,000 in capital gains. After that capital gains should be considered normal income.
Payroll taxes should stay the same regardless of income. PAYROLL, as in taxes paid by employees.
The highest earning 10% of tax payers in the United States pay the most taxes, 70% of the nations tax burden. These 13,768,000 tax payers paid $610,000,000,000 total income tax on a total adjusted gross income of $3,380,000,000,000 for an average adjusted gross income of about $245,000 each.
Yep, the top 10% of income earners in the United States make an average of $245,000 each.
The average income in the United States is $56,710. Total income $7825,000,000,000 divided by 137,982,000 taxpayers equals $56,710.00.
Wow, that's a lot of money! That was sarcasm, it really ain't. Let's subtract out that top 10%.
$7825,000,000,000 minus $3,380,000,000,000 equals $4,445,000,000,000 total income.
137,982,000 minus 13,798,000 equals 124,184,000 taxpayers.
$4,445,000,000,000 divided by 124,184,000 equals $35,793.66 average income.
So, the 90% of people in the United States making under $245,000.00 makes an average of $35,793.66 in income.
We can make the point a little better.
The bottom 50%, 68,991,000, of taxpayers made a total of $1,055,000,000,000 and an average of $15,291.84.
Wait a second, what about that "middle class" then, the people between the bottom 50% and the top 10%?
124,184,000 taxpayers minus 68,991,000 taxpayers equals 55,193,000 "middle class" taxpayers.
Total income of that group equals $4,445,000,000,000 minus $1,055,000,000,000 or $3,390,000,000,000.
So $3,390,000,000,000 divided by 55,193,000 equals $61,420.83 and that is your "average middle class income".
Now have we started getting a handle on income disparity in the United States?
If we want to fix the economy we have to increase the wages of the bottom 50% of tax payers in the United States.
We have to find a way to employ them in jobs where their incomes increase.
Corporations are using really bad math to minimize their costs. The less they pay workers, the less workers can spend and the less money the corporations make so the less they pay workers. This is a self defeating ideology guaranteed to destroy the economy of the United States.
Back at the turn of the century Henry Ford proved that the more money you pay workers the more money the workers spent and the more money the corporation made.
Washington needs to quit including families making over about $125,000.00 in "middle class" and giving them "middle class" tax breaks.
I don't have a problem with the tax code the way it was in 2010. I think we need to leave it that way, except for some small changes to the capital gains tax and eliminating the social security cap.
Wait, I also think employers need to pay 75% of the social security taxes collected and social security should be collected for every employee. People who have been in the top 10% of income earners for 10 years or more should not be eligible for social security.
Employers should also pay 100% of the cost of medical insurance. Period.
The only way to drive up the tax base is to increase income. Washington likes to increase the income of people in the top 10% because increasing their income 1% is easier and makes Washington more money than increasing the income of the bottom 50% by 10%.
The morons in Washington are going to screw this country over doing what is easiest.
We can't wait around hoping another Steve Wozniak invents something and has a friend like Steve Jobs to sell it creating the "tech bubble".
If we don't encourage "out of the box" behavior and education as well as improving the income for that bottom 50% to increase the odds of someone finding the next "tech" that invention might be in Asia, India, Russia or Europe.
And the US will be sitting there, broke and stupid.