Ah, yes, cretins

In the US, most people make their money from a regular job; they get a paycheck and pay income taxes. But the richest Americans, the top 1 percent, make most of their money from things like investments in real estate or the stock market. Those investments are taxed as capital gains. While federal income tax has a maximum tax rate of 37 percent, the tax rate for capital gains tops out at just 20 percent.

Sigh.

No.

It’s not even a majority is capital income, let alone capital gains.

For the top 1 percent of households, in contrast, capital income — most of which enjoys preferential tax rates[4] — constitutes 41 percent of their taxable incomes,

Capital income is not the same as capital gains. Further:

According to the Congressional Budget Office, as of 2011, the top 1 percent of income earners in the U.S. get more than a third of their income from capital gains. For context, the typical annual income for those in the top 1 percent is about $1.4 million.

Sigh.

4 thoughts on “Ah, yes, cretins”

  1. I read somewhere that around 9% of Americans are at some point in their life among the top 1%. It’s logical that the 1% is constantly shifting. People start jobs, earn more as their career progresses, Some careers go wrong, generally people earn less when they retire.

    But if the evil nasties are 9% rather than just 1%, if the 1% aren’t a fixed target, it’s harder to see them as some sort of mystical hard to find and easy to hate elite, isn’t it?

    And of course, being in the 1% needn’t mean you are THAT rich. I think c£160k p.a. gets you there in the UK. Very well off, for sure, but gold plated Lamborghini’s and mega-yachts it is not.

  2. Apparently being a Dem Senator for 40 years on $160k per annum gets you many large houses and enormous fridges full of exotic ice cream. Who knew life in the USA was so cheap?

  3. “I think c£160k p.a. gets you there in the UK.”

    So, many GPs then? Including plenty who’ve spent lockdown avoiding their patients? Good ol’ Toni Blair, eh?

  4. Never thought I’d quote the P³, but…

    “Narrative construction is not accidental”

    It’s Vox, after all…..

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