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To: Kaslin
The real problem with the recent "revelation" is that it is cherry-picking to reach a pre-determined conclusion.

Here's what has happened over the past 28 years:

Has the income for the top 1% gone up? Yes, the trend is upwards. But, notice the variability, and that 2007 was a peak year. After the Democrats took control of both houses of Congress, the economy crashed. 2008, 2009, and 2010 will be dismal, when those numbers are finally compiled.

And the share of national income varies as well:

The reason is that the top 1% gets a much larger portion of their income from capital gains. When the economy is good, they get more capital gains. When the economy is bad, they get less capital gains, or even capital losses.

In order to realize a capital gain, you have to invest money. A lot of it. And you have to risk losing some or all of it. If the top 1% stopped investing for capital gains, what would new or expanding businesses have to do?

Suddenly, business would be forced to borrow money to start a new venture or expand. What do you think would happen? If you guessed: "new job creation would be significantly reduced", you'd be absolutely correct.

BTW, if you think the top 1% have been getting a free ride, compare the above graph (share of national income) to the next one (share of federal taxes):


6 posted on 10/27/2011 10:05:11 AM PDT by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: justlurking

I never see it mentioned how one unintended consequence of a progressive tax schedule is that it drives up the compensation for talented managers, engineers, etc. that are hired by companies who need to attract such talent.

Per force of mathematics.


7 posted on 10/27/2011 10:24:10 AM PDT by Poincare (Reality is not a fool.)
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To: justlurking

Are your charts for individuals or for households?


9 posted on 10/27/2011 10:38:04 AM PDT by marktwain (In an age of universal deceit, telling the truth is a revolutionary act.)
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