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bostonangler

Richest 1% Close To Topping Wealth Of Entire Middle Class Due To Trump Tax Cuts, Interest

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As the wealth gap in the U.S. continues to widen, the top 1% of Americans are close to amassing more wealth than the entire middle class, according to the latest data from the Federal Reserve, Bloomberg reports. Part of that growing divide is fueled by President Donald Trump’s tax cuts and his relentless drive for lower interest rates.

The top richest Americans had assets of about $35.4 trillion in the second quarter. That’s just short of the $36.9 trillion held by the tens of millions of Americans who make up the middle and upper-middle classes — the 50th to the 90th percentile — according to an analysis of the new data by Bloomberg.

The wealthiest have benefited from a surging stock market and Trump administration tax reforms including such benefits as reductions on inheritance taxes.

Trump’s constant demand for decreased interest rates has also hit wealth gains by the middle class while boosting assets of the richest, notes Bloomberg. Members of the middle class are reaping fewer financial gains from interest on savings and less expensive, safer financial vehicles such as certificates of deposit.

Major investors, on the other hand, are enjoying the benefits of lower costs for borrowing money. In addition, the wealthy can take advantage of top-level hedge funds and private equity funds that require a minimum $5 million investment.  

“The wealthier that the wealthy get, the more opportunity they have,” Stephen Colavito, chief market strategist at investment firm Lakeview Capital Partners, told Bloomberg. 

The news follows revelations by economists Gabriel Zucman and Emmanuel Saez of the University of California at Berkeley that the nation’s richest billionaires are now paying a lower tax rate than working-class Americans.

“In 2018, following the Trump tax reform, and for the first time in the last 100 years, billionaires have paid” a lower tax rate than “steel workers, school teachers and retirees,” the economists write in their new book “Triumph of Injustice.” The “wealthy have seen their taxes rolled back to rate last seen in the 1910s, then government was only a quarter of the size it is today.”

As the “inequality spiral” continues, the economists have argued, the wealthiest have even more resources to further influence and skew the system to benefit them. 

Earlier this year an analysis by The Washington Post found that the 400 richest people in the nation — just .00025 percent of the population — own more than the 150 million adults in the bottom 60 percent.

https://www.yahoo.com/huffpost/wealth-gap1-percent-middle-class-035222885.html

 

The numbers are staggering...

B/A

 

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The Internal Revenue Code is the primary statutory basis of federal tax law in the United States. The Code of Federal Regulations is the Treasury Department's regulatory interpretation of the federal tax laws passed by Congress, which carry the weight of law if the interpretation is reasonable. Tax treaties and case law in U.S. Tax Court and other federal courts constitute the remainder of tax law in the United States.

Tax law or revenue law is an area of legal study which deals with the constitutional, common-law, statutory, tax treaty, and regulatory rules that constitute the law applicable to taxation.

Primary taxation issues facing the governments world over include;

  • Taxes on income and wealth (or estates).
  • Taxation of capital gains versus labor income.
  • Ecotax (short for Ecological taxation) refers to taxes intended to promote environmentally friendly activities via economic incentives.
  • Tax evasion and avoidance leading to reduced government revenue.
  • Due to an Inefficient tax system in many underdeveloped countries, the majority of small businesses are not taxIed.
  •  law schools, "tax law" is a sub-discipline and area of specialist study. U.S. law schools require 30 semester credit hours of required courses, 60 hours or more of electives and a combined total of at least 90 credit hours completed. Law students must choose available courses on which to focus before graduation with the J.D. degree in the United States. This freedom allows law students to take many tax courses such as federal taxation, estate and gift tax, and estates and successions before completing the Juris Doctor and taking the bar exam in a particular U.S. state.

    Master of Laws (LL.M) programs are offered in Canada, United States, United Kingdom, Australia, Netherlands and an increasing number of countries. Many of these programs focus on domestic and international taxation. In the United States, most LL.M. programs require that the candidate be a graduate of an American Bar Association-accredited law school. In other countries a graduate law degree is sufficient for admission to LL.M. in Taxation law programs.

    The Master of Laws (LL.M) program is an advanced legal study.

    General Requirements

  • J.D. (Juris Doctor) or First degree in law.
  • An English proficiency test score for students with a native language besides English.
  • The Juris Doctor (JD) program is offered by only a number of countries. These include, United States, Australia, Canada, Hong Kong, Japan, Philippines, Singapore and the United Kingdom. The courses vary in duration of years, curriculum and whether or not further training is required, depending on which country the program is in.

    General Requirements

  • A bachelor's degree.
  • Law School Admission Test (LSAT) - Required for law school admission in United States, Canada and a growing number of countries.
  • Credit requirements.
  • A list of tax faculty ranked by publication downloads is maintained by Paul Caron at TaxProf Blog.

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When half of Americans pays no income taxes, and the poor in America are considered "RICH" by any standard in any other country in the world, I am okay with the wealthy controlling as much wealth as they do in America. I am also okay with the Trump Tax Policy because it is encouraging the reinvestment of this wealth back into America, which will only benefit the Middle and Lower Class through jobs and economic growth.

 

This is an example of "The Democrat Clown Car Is Broken And Only Steers LEFT" ideology, because instead of wanting all Americans to increase in wealth and economic standing, they try to make all Americans suffer by penalizing those who succeed. Why don't they point out the achievements and accomplishments of the successful in America as examples for ALL Americans to strive towards. Instead, it is a message of demonize the wealthy as if their financial gains are always at the expense of the Middle and Lower Class.

 

Indy

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20 hours ago, Indraman said:

it is encouraging the reinvestment of this wealth back into America

 

Do you mean stock buy backs to prop up an overvalued market? Because that's where most of it went.

 

B/A

 

 

I know this may a bit complicated for some folks, but this explains buys backs in a pretty simple manner

https://www.forbes.com/sites/garymishuris/2019/09/10/the-stock-buyback-disaster-and-3-exceptions/#327672f11f96

 

 

Here is a story about buy backs from CNBC and JP Morgan.. 

 

Stock buybacks this year are strong but just below 2018′s record, according to a new report from J.P. Morgan.

As buybacks hit records last year (about $800 billion), a predictable political backlash developed: Corporations were spending too much of their free cash flow buying back stock and should spend more investing in their businesses, critics claimed.

 

Maybe, but J.P. Morgan concludes that buybacks do accomplish their main goal. They improve stock prices.

https://www.cnbc.com/2019/07/18/companies-have-been-buying-back-massive-amounts-of-stock-this-year.html

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America Has More Millionaires Than Ever

Despite excessive government involvement in the American economy, entrepreneurs still find ways to improve everyone’s living standards. And consumers have rewarded them handsomely according to recent reports.

abundance-bank-banking-259027-1024x683.j

Bloomberg detailed how the number of wealthy individuals in America hit a new high in 2018. A survey from the Specrtrem Group found that roughly 10.2 million households had a net worth within the range of $1 million and $5 million. This number of households is about the same population size as Portugal or Sweden. These latest figures are a 2.5 percent increase from 2017.

Spectrem Group President George Walper, however, did point out that the rate of growth for the number of wealthy households in America has been slowing down because of  “weakening global economic growth and a contentious U.S. political environment.”

Additionally, “ultra-high net worth” households — households possessing assets between $5 million and $25 million — grew to 1.4 million, representing a 3.7 percent increase.

Households with assets higher than $25 million grew by 0.6 percent to 173,000. Despite signs of slowing growth, the number of America’s wealthiest has doubled since the Great Recession started.

Even with a highly regulated economy, America still demonstrates how even shackled capitalism can still yield tremendous results. American entrepreneurship still finds ways to innovate in spite of the obstacles, like its burdensome tax code and out of control regulatory state, in front of it.

A society that maintains a strong degree of respect for private property like the U.S. can still thrive economically, as it has demonstrated over the past century.

Nevertheless, this system can still be perfected by scaling back the size of government on all fronts. Sadly, many people don’t realize how much red tape the American economy must put up with. Some estimates show that regulatory compliance costs the economy $1.9 trillion annually. So before political figures like Alexandria-Ocasio Cortez declare capitalism to be “irredeemable”, let’s start actually making it easier for people to make a living for once.

If we want to crush poverty and create a wealthier society, we should break free from the regulatory shackles that hold millions of businesses and individuals down. There is no bigger obstacle to creating wealth than government intervention.

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5 minutes ago, yota691 said:

America Has More Millionaires Than Ever

Despite excessive government involvement in the American economy, entrepreneurs still find ways to improve everyone’s living standards. And consumers have rewarded them handsomely according to recent reports.

abundance-bank-banking-259027-1024x683.j

Bloomberg detailed how the number of wealthy individuals in America hit a new high in 2018. A survey from the Specrtrem Group found that roughly 10.2 million households had a net worth within the range of $1 million and $5 million. This number of households is about the same population size as Portugal or Sweden. These latest figures are a 2.5 percent increase from 2017.

Spectrem Group President George Walper, however, did point out that the rate of growth for the number of wealthy households in America has been slowing down because of  “weakening global economic growth and a contentious U.S. political environment.”

Additionally, “ultra-high net worth” households — households possessing assets between $5 million and $25 million — grew to 1.4 million, representing a 3.7 percent increase.

Households with assets higher than $25 million grew by 0.6 percent to 173,000. Despite signs of slowing growth, the number of America’s wealthiest has doubled since the Great Recession started.

Even with a highly regulated economy, America still demonstrates how even shackled capitalism can still yield tremendous results. American entrepreneurship still finds ways to innovate in spite of the obstacles, like its burdensome tax code and out of control regulatory state, in front of it.

A society that maintains a strong degree of respect for private property like the U.S. can still thrive economically, as it has demonstrated over the past century.

Nevertheless, this system can still be perfected by scaling back the size of government on all fronts. Sadly, many people don’t realize how much red tape the American economy must put up with. Some estimates show that regulatory compliance costs the economy $1.9 trillion annually. So before political figures like Alexandria-Ocasio Cortez declare capitalism to be “irredeemable”, let’s start actually making it easier for people to make a living for once.

If we want to crush poverty and create a wealthier society, we should break free from the regulatory shackles that hold millions of businesses and individuals down. There is no bigger obstacle to creating wealth than government intervention.

 

 

That's awesome... So I take it you are a millionaire. In fact this makes me wonder, how many DVers are millionaires. If you are a millionaire today let's hear it! If you became a millionaire since 2016 tell us how you did it!

 

B/A

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47 minutes ago, bostonangler said:

you mean stock buy backs to prop up an overvalued market? Because that's where most of it went

Funny  you didn't have a problem when Obuthead did it

 

 

A two-year-old girl crying

Crying is the shedding of tears (or welling of tears in the eyes) in response to an emotional state, pain or a physical irritation of the eye. Emotions that can lead to crying include anger, happiness, or sadness. The act of crying has been defined as "a complex secretomotor phenomenon characterized by the shedding of tears from the lacrimal apparatus, without any irritation of the ocular structures", instead, giving a relief which protects from conjunctivitis.[1] A related medical term is lacrimation, which also refers to non-emotional shedding of tears. Various forms of crying are known as sobbing, weeping, wailing, whimpering, bawling, and blubbering.[2]

For crying to be described as sobbing, it usually has to be accompanied by a set of other symptoms, such as slow but erratic inhalation, occasional instances of breath holding and muscular tremor.

A neuronal connection between the lacrimal gland (tear duct) and the areas of the human brain involved with emotion has been established. Scientists debate over whether humans are the only animals that produce tears in response to emotional states.[3][4] Charles Darwin wrote in The Expression of the Emotions in Man and Animals that the keepers of Indian elephants in the London Zoo told him that their charges shed tears in sorrow.

Tears produced during emotional crying have a chemical composition which differs from other types of tears. They contain significantly greater quantities of the hormones prolactin, adrenocorticotropic hormone, and Leu-enkephalin,[5] and the elements potassium and manganese.

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13 minutes ago, coorslite21 said:

Simple fix.......flat tax rate....same rate for all.....no more loop holes.....

 

CL

 

Yup I agree, but as long as corporate money flows into elections like they have since the 1970s, we will never see that.

 

B/A

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20 minutes ago, ladyGrace'sDaddy said:

Funny  you didn't have a problem when Obuthead did it

 

 

A two-year-old girl crying

Crying is the shedding of tears (or welling of tears in the eyes) in response to an emotional state, pain or a physical irritation of the eye. Emotions that can lead to crying include anger, happiness, or sadness. The act of crying has been defined as "a complex secretomotor phenomenon characterized by the shedding of tears from the lacrimal apparatus, without any irritation of the ocular structures", instead, giving a relief which protects from conjunctivitis.[1] A related medical term is lacrimation, which also refers to non-emotional shedding of tears. Various forms of crying are known as sobbing, weeping, wailing, whimpering, bawling, and blubbering.[2]

For crying to be described as sobbing, it usually has to be accompanied by a set of other symptoms, such as slow but erratic inhalation, occasional instances of breath holding and muscular tremor.

A neuronal connection between the lacrimal gland (tear duct) and the areas of the human brain involved with emotion has been established. Scientists debate over whether humans are the only animals that produce tears in response to emotional states.[3][4] Charles Darwin wrote in The Expression of the Emotions in Man and Animals that the keepers of Indian elephants in the London Zoo told him that their charges shed tears in sorrow.

Tears produced during emotional crying have a chemical composition which differs from other types of tears. They contain significantly greater quantities of the hormones prolactin, adrenocorticotropic hormone, and Leu-enkephalin,[5] and the elements potassium and manganese.

 

You really are hateful aren't you? I post an article about corporate buying back stock to prop up the markets, thus keeping them overvalued and you come back with a middle school reply. What do you suppose is going to happen when the buy backs end?  Want to take a guess?

 

B/A

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11 minutes ago, bostonangler said:

You really are hateful aren't you?

Now that's just funny 

 

Psychological projection

 is a defence mechanism in which the human ego defends itself against unconscious impulses or qualities (both positive and negative) by denying their existence in themselves while attributing them to others.[1] For example, a person who is habitually rude may constantly accuse other people of being rude. It incorporates blame shifting and can manifest as shame dumping.

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1 minute ago, ladyGrace'sDaddy said:

Now that's just funny 

 

Psychological projection

 is a defence mechanism in which the human ego defends itself against unconscious impulses or qualities (both positive and negative) by denying their existence in themselves while attributing them to others.[1] For example, a person who is habitually rude may constantly accuse other people of being rude. It incorporates blame shifting and can manifest as shame dumping.

 

Wow another copy/paste reply... Do you ever have an original thought?

 

B/A

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2 hours ago, bostonangler said:

 

Do you mean stock buy backs to prop up an overvalued market? Because that's where most of it went.

 

B/A

 

 

I know this may a bit complicated for some folks, but this explains buys backs in a pretty simple manner

https://www.forbes.com/sites/garymishuris/2019/09/10/the-stock-buyback-disaster-and-3-exceptions/#327672f11f96

 

 

Here is a story about buy backs from CNBC and JP Morgan.. 

 

Stock buybacks this year are strong but just below 2018′s record, according to a new report from J.P. Morgan.

As buybacks hit records last year (about $800 billion), a predictable political backlash developed: Corporations were spending too much of their free cash flow buying back stock and should spend more investing in their businesses, critics claimed.

 

Maybe, but J.P. Morgan concludes that buybacks do accomplish their main goal. They improve stock prices.

https://www.cnbc.com/2019/07/18/companies-have-been-buying-back-massive-amounts-of-stock-this-year.html

 

@bostonangler

 

I have a 401k...my value has gone up because my corporate stock has gone up. Why is this bad?

 

Plus, with the corporate tax windfall that our corporation has seen over the past few years, we are investigating $Billions in New infrastructure. We are hiring more people and our profit sharing has been spectacular. I know that I am giving you anecdotal evidence, but how many other corporations are doing the same?

 

You really do have a hateful view of the the wealthy, corporations, and the Capitalistic system in general. Rethink your distorted views and remove your blinders.

 

Indy

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1 hour ago, bostonangler said:

 

Yup I agree, but as long as corporate money flows into elections like they have since the 1970s, we will never see that.

 

B/A

 

@bostonangler

 

Do you express this same concern for Labor Unions? Isn't it interesting that you were quick to demonize corporations but yet not mention Labor Unions?

 

Indy

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1 hour ago, coorslite21 said:

Simple fix.......flat tax rate....same rate for all.....no more loop holes.....

 

CL

 

I always believed ( and still do) that taxation in any civilized Country should be progressive as an obvious form of justice...The more you have the more you pay also in percentage...20, 30, 40, 50, 60% depending on your wealth and gains

 

A flat tax  of, say, 15% for all sounds total injustice ( it was proposed in my Country as well)...If one makes 35,000 a year cannot stay in the same tax bracket as one making 3M a year...There must be progressive brackets depending on yearly gains.......Sounds only fair

Edited by umbertino
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16 minutes ago, Indraman said:

I have a 401k...my value has gone up because my corporate stock has gone up. Why is this bad?

 

Mine has too... It has been outstanding since 2009... But I suggest you rebalance, because when the buy back stop... It will drop and it will drop quickly. I hope you book your profits. That's what the banks and hedge funds are doing.

 

B/A

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16 minutes ago, Indraman said:

 

@bostonangler

 

Do you express this same concern for Labor Unions? Isn't it interesting that you were quick to demonize corporations but yet not mention Labor Unions?

 

Indy

 

I'm a business owner and understand your point. But after the gilded age, the middle class was created by unionizing the people. I'm not saying unions didn't get out of control and I certainly don't deny they are corrupt. But here in my town, auto workers passed on the union and they are the lowest paid auto workers in America. They don't enjoy the benefits or the money their counterparts in Germany enjoy... Personally I make 30 to 40% over my employees not 400% like CEO in giant corporations. I'd rather give some of my profit to better the lives of employees than go buy a yacht I really don't need. JMHO

 

B/A

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I find it sad that American Citizens are so unappreciative of what they have......

 

Statistically 99% of US Citizens are in the top 1% wealthwise in the world......try $200 bucks annually a year and walking 5 miles for fresh water daily....

CL

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14 minutes ago, umbertino said:

 

I always believed ( and still do) that taxation in any civilized Country should be progressive as an obvious form of justice...The more you have the more you pay also in percentage...20, 30, 40, 50, 60% depending on your wealth and gains

 

A flat tax  of, say, 15% for all sounds total injustice ( it was proposed in my Country as well)...If one makes 35,000 a year cannot stay in the same tax bracket as one making 3M a year...There must be progressive brackets depending on yearly gains.......Sounds only fair

 

How are things working out in Italy these days?

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1 hour ago, ladyGrace'sDaddy said:
1 hour ago, bostonangler said:

You really are hateful aren't you?

Now that's just funny

 

1 hour ago, bostonangler said:

 

Wow another copy/paste reply... Do you ever have an original thought?

 

B/A

I made a comment. So please don't misrepresent me again. 

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27 minutes ago, coorslite21 said:

 

How are things working out in Italy these days?

 

You know how they say history repeats itself? There was a time when Italy was the most powerful nation in the world. France had it's moment. Great Britain did too... What is the common factor to these once great nations?

 

B/A

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1 minute ago, ladyGrace'sDaddy said:

So who's hateful little man?

 

 

 

 

I'm sure he's thinking, "thank god dad paid off that doctor for my fake bone spur"

 

He is a coward... No make that a lying coward.... No make that a lying coward who disrespects our decorated veterans....

You know John Kelly is now going to suck and after bashing Sessions Trump will now tell us how great he is, because Trump needs Alabama, and after his visit and Alabama's loss this weekend, he could be in big trouble with Alabama fans...

 

B/A

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