Taxes and the Rich: Clearing Up The Rhetoric

The big debate in Washington right now is over taxes.  President Obama is calling for a "Buffett Rule", named after Warren Buffett who famously asked that his under-taxed billionaire breathern stop being "coddled" by the US tax code, claiming that he is in fact taxed less then his secretary.  On the right side of the political spectrum, they are saying Obama's call to raise taxes on the wealthy is a form of "class warfare", claiming they pay their fair share, and they are being penalized simply for being successful.  So do they pay less then their secretaries?  We've picked apart the rhetoric and ruffled through some facts in order to get to the bottom of this.

As it currently stands, those making over a million dollars a year will pay 29.1 percent of their WAGE income in federal taxes.  Keep in mind, that there are state, city, social security, and medicare taxes that are not figured into this 29.1 percent.  Households making between 40 and 50 thousand will pay 12.5 percent and those making between 20 and 30 will pay 5.7 percent.  I decided to analyze my own sub-50 thousand a year paycheck.  It seems I'm paying 15 percent in federal income taxes.  (I'll be expecting a hefty return :) )  This all seems fair, so what's the problem?  Investment income.

One of the key things to take away from this data is the source of income.  The top tax rate for wages is 35 percent, while the top tax rate for dividends and capital gains (investments) is 15.  If the majority of a person's income comes from investments, then they are being taxed essentially the same as a person with an income of 50,000 dollars.  Here are a few graphs from 2007 to illustrate income distribution among wealth classes.

 
As you can see, the top 10 percent derive the majority of their income from investment.

The following is a wealth distribution chart broken down into actual, estimate, and ideal.  Note that the two lowest groups (Bottom 20th and 2nd lowest 20) aren't even shown because their percentage is so low.  The Bottom 20 percent has .1 percent of wealth, while the second lowest 20 has .2 percent of wealth. 

The conclusion we've come to is that when it comes to taxed wages, the wealthy do pay their fair share.  Unfortunately, a significant portion of their income does not come from wages but investments, while the bottom 90 percent of earners do not have the expendable income to invest their money.  In fact, they hold most of the debt in this country.  The majority of investment is done by those in the top 10 percent and their profits from this investment is taxed at a rate similar to that of a lower-middle income person.   

I encourage you to peruse my sources if you would like more information.

Who Rules America: Wealth, Income, and Power

Are Rich Taxed Less Than Secretaries?

The Difference Between Winning and Losing

707 people.  That's the difference between winning and losing a state assembly race.  Some of you have more Facebook friends then that.  4806 people.  That's the difference between becoming or not becoming one of the lucky 435 members of Congress.  The power is in your hands.  Use it.

Here are the results from the Sept 13th, 2011 Special Elections in New York City. (as of the evening of Sept 14th)

Special Election UNOFFICIAL 2011 Results

 

Victory and Defeat

The results are in and the winners are....

Congressional 9th - Bob Turner (Republican)
State Assembly 54th - Rafael Espinal (Democrat)
State Assembly 23rd - Phillip Goldfeder (Democrat)
State Assembly 27th - Michael Simanowitz (Democrat)
State Assembly 73rd - Dan Quart (Democrat)

“You never know what a person is going to do until they get into office.”

New York City woke up this morning with 5 new leaders, game-changers, and difference makers.  Now it's time to stay on top of them.  Communicate with your elected officials and let them know what issues most concern you and what you want improved in your community.  Don't let them out of your sight.  Watch how they vote.  Mind their words, make sure it's not all bullshit.  Note changes or lack of changes in your community.  Make sure you are given nothing less then a 100 percent commitment to your neighborhoods and your livelihoods.

3 Similar Candidates with 3 Very Different Backgrounds

3 Similar Candidates with 3 Very Different Backgrounds

Special Elections!!!  This Tuesday, September 13th!!

I was going to provide you with the stances of all the candidates in the 54th State Assembly District, but once I began to compile the facts I realized there were few difference in their views.  All three are for decreasing crime, more jobs, improving schools, and fixing every other problem that plagues an underserved lower-income district.  Where Jesus Gonzalez, Deidre Towns, and Rafael Espinal do differ, is in their backgrounds.

DEIDRA TOWNS

Ms. Towns family constitutes a political dynasty.  Her brother, has held the seat she is seeking for the past 18 years.  Her father, is Congressman Edolphus Towns, who is serving his 15th term in Congress.  Much of her past work experience has raised questions in that you can't trace any significant contributions to the workforce.  Her website states that she has made a career in business development.  In fact, Deidre hasn't seemed to show much of an interest in politics until now.

JESUS GONZALEZ

Jesus Gonzalez is a young (26) community activist who at age 13 became a founding member of a non-profit called Make the Road, an immigrant advocacy group.  He has very few political connections and all of his roots are connected to the community he wants to serve.  This leaves him owing favors to noone and in a better position to do what is best for his district.  Gonzalez is also an alternative to the two groups that have been running Brooklyn and Queens for the past 30 years.   

RAFAEL ESPINAL 

While Rafael Espinal, is not part of a political family, he is a member of the Democratic machine.  Backed by Brooklyn Democratic Chairman Vito Lopez, he is the heir-apparent to his seat.  For the past few decades Brooklyn and Queens have looked like a rivalry between two factions, one led by Lopez the other by Congressman Towns.  Also young, (27) and Latino, he represents the changing demographics of the district.  Furthermore, he comes from a working class Dominican family in the area.  His opposition of abortion and same-sex marriage makes him a star in the eyes of Conservative, Catholic Latinos.  

I think this election is going to come down to business as usual versus new blood.  The future versus the past.  A new way of doing things versus the old way of doing things.  There are arguments in favor of both sides.  

READ MORE ABOUT THE CANDIDATES....

Candidates for the 54th Debate

Rafael Espinal

Deidra Towns

Jesus Gonzalez

Who Are These People?: Congressional District #9

On Sept 13th, voters will elect a candidate to fill Anthony Wiener's seat in the Congressional 9th district.  Parties are notorious for sneaking in weak candidates during off calender special elections, making it all the more important to know who is running.  Here is a rundown of the candidates and their alleged stances. 

Congressional #9 District Map

Bob Turner

• 40 year veteran of the television industry.  Former executive
• Wants to reform Medicare and Social Security without privatizing or bankrupting them
• Advocates raising retirement eligibility age for people who are 55 or younger
• The way to grow the economy is to reduce spending, cut taxes, and decrease regulation
• Believes Stimulus Bill was a failure
• Pro-Isreal and does not recognize a Palestinian state
• Believes in healthcare reform but does not support Obama's healthcare plan
• Against a mosque near ground zero

Chris Hoeppner

• Queens native, factory worker, son of a firefighter
• US should withdraw from "brutal wars" and conflicts abroad
• Calls for an end to the war on drugs
• Wants to create jobs by increasing spending on infrastructure
• Wants to strengthen social welfare programs and unions
• Wants to expand Medicare, Medicaid, and Social Security
• Advocates cutting the workweek for those who do have jobs and mandating their salaries stay the same, then employing those out of work on other days

David Weprin

• Born and raised in Hollis-Jamaica section of Queens, brother is a State Assemblyman, father was the Speaker of the Assembly
• Favors increasing revenue/taxes to balance budget
• Opposed recent Budget Control Act of 2011 which raised the debt ceiling
• Voted in favor of legalizing same-sex marriage in NY
• Opposes any changes to Social Security
• Supporter of Israel and a strong US-Israel relationship
• Believes in man-made global warming
• Avoids reducing spending or budget cuts
• Sponsored Legislation 

GOOD READS ON THE CANDIDATES

Weprin and Turner Know Little About Their District
Bob Turner for Congress
David Weprin for Congress