Has anyone heard off this book?
"Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich -- and Cheat Everybody Else"
http://www.perfectlylegalthebook.com/
Here's a lengthy excerpt from an interview with the author taht I think sums it up well.
If you think it's too long, then you should see my ****.
President Bush says that the way to measure tax burdens is how much of your money do you get to keep. Now without quarreling with his interpretation, let's examine what he says. How much of your money do you get to keep? The more that you get to keep, the more you have the freedom to either spend it on your lifestyle today or save and invest for the future. Well, for people at the very top of the income pile, their tax burden has been falling, and they have more and more income to save and invest. Now if you are in the top group -- if you're making $10 million or more -- you can't spend your entire income unless you're a gambling addict or, actually, I don't know how you could spend it unless you're a gambling addict, because, if you're buying oil paintings, those don't lose value unless you're a complete idiot. You mostly are investing that income, okay? Well, investing works, as anybody who got in a 401k plan knows, over the long term. Forget about the downturn of the market right now. It's a snowball. You add new contributions to the snowball and the market returns part of it to you. And pretty soon the magic of compounding interest is bigger than your contribution, and that snowball gets bigger and bigger, and your income gets bigger and bigger. So that if you are relieved of a substantial burden of taxes, and you have the capacity to save substantial amounts, you will get wealthier and wealthier.
Meanwhile, people in the middle class and the upper middle class are confronted by two things. A growing share of their income is going to taxes, and we have seen falling wages for the bottom, about 40 percent, of Americans; stagnant wages for the next 40 percent of Americans; infinitesimal growth in income for the next 10 percent -- that brings us to the 90 percent percentile -- and this incredible concentration of incomes at the very top. When one-third of Americans belonged to unions, more than two-thirds of Americans benefited from that because there were employers who did not want to have unions, so they paid premium wages -- and by the way, tended to get the very best workers as a result, as classic economic theory says they should. Lots of low-level managers at companies, their wages were basically set by the unions. To the extent that we set up the rules to shrink unions, we drive down wages -- and America is the only nation in the modern world that is driving down wages.
They get a 15-cent-an-hour job in Malaysia making Nike tennis shoes -- that is a wage growth strategy for Malaysia. We are the only country in the world that is in the pursuit of lowering wages. And it's been a very successful program. So you combine all of those forces, and you can see why the data, the official government data, which were right there for anybody to report on, but nobody in Washington announced: Oh, the top 400 taxpayers -- it's actually about a thousand people when you count the spouses and children -- the top 1,000 people in America are earning more than 1 percent of the income, when 30 years earlier, it took more than 25,000 people to earn the top 1 percent of income in America. No one announced it, and, therefore, to most of the news media, it's not a story.
Who are the typical leaders in cities and towns across America? The minute you get away from Los Angeles and New York, and you go to Cincinnati, or Rochester, New York, or Anytown, America, what is the income level of the leaders of that community? $200,000 $300,000, $400,000, $500,000? There's a few people who make a million. There are one or two there who make $5 or $10 million. But for the core group, that's their income range, $200,000 to $500,000. They're being squeezed. And when your civic and local business leadership class is being squeezed it assumes the people above are being squeezed even more because that's what they see. But the people who make 10 or 100 times more are not being squeezed. And this false belief that the higher your income the bigger the share of it you pay in taxes is being exploited by people above them, so that the people at the very, very top who don't want to pay taxes can continue to benefit from tax relief. And the people down below haven't figured out that they don't have common cause with those people -- and are actually subsidizing those who make much more than they do.
People who make $200,000 are very well off. But they still go to work every day. They still have mortgages on their houses. They're not in the group of people who own a private jet, and have limousines, and own six houses. That's a totally different world. And innumeracy is a fundamental part of this problem. People don't grasp the difference between $200,000 and $200 million.