On the surface it seems that in America income disparity holds down the lower income if your a liberal. If you’re a Conservative it seems that taxation robs from those that can be taxes to those who can’t thereby redistributing wealth. In reality neither of these are exactly correct. What really is happening is that those at the very top control a very rigged game of welfare for the rich and the poor. This all comes at the expense if those in the middle. Slightly less than half live in poverty or pay little in taxes while everyone else provides them benefits. These benefits either come in terms of actual payment or services provided by government. Half of the people pay for most of what these lower half people consume. These people for the most part make up the vast middle class in America. The people at the very top, the so called 1% make up another group who pay a small percentage into the system and take it out in tax breaks and government subsidies.
In David Cay Johnston’s Free Lunch he lays out a great case for how the richest people in America manipulate the system. They build stadiums, businesses and get government contracts through political influence. They pay off the ruling class and in turn the ruling class provides for them benefits. The richest 1% are whole heartedly in favor of welfare because it’s very existence shields their own welfare program. No wonder that the rich manipulate our capitalist system into a kind of mongrelized version of capitalism. What it really amounts to is crony capitalism and it must end or it will end us. It’s more than time to make sure that the very richest start paying more into the system and taking out less. Doing so might allow for needed relief for the middle class.
45 % of Americans earn less than 25k per year. They receive most of the food stamps, rent subsidies and income support. They also pay nothing into the system. These are for the most part the poor, working poor, youth and par time workers.
27 % of Americans earn between 25 – 50 k per year. These workers are the working poor. They pay very little because they have so much left after supporting themselves. Most don’t pay very much nor do they take anything out of the system.
13 % of Americans earn between 50 – 75 k per year. These are the people who make up most of the middle class in this country. They are overtaxed and under rewarded in our society. These people are in dire need of help. The next 5 % of Americans earn between 75 – 100 k per year. They likewise pay a lot and take very little as they also make up the higher end of the middle class. Even among the next 9% these people earn between 100 – 250k. They pay in a lot to the tax system and get very little in return. That accounts for 99% of all Americans.
The top 1 % of Americans earn above 250 k + with the average being about 1 million per year. They actually pay very little and get a lot. The reason is that they buy the influence from government to receive subsidies and tax breaks.
This welfare by the rich must end so that our middle class can make a comeback. I still believe that welfare as a rule is not a good program. We shouldn’t have to take from someone to give to someone else. However if were going to have it then make it fair to all. Our current system provides welfare for the very poorest and the very richest as well. All of this comes at the expense of those in the middle. This must end and first in must stop at the top of the income pyramid. This will begin to attempt to make the system fairer for all.