Monday Morning Musings

“This is the highest level of income inequality we have seen since 1929,”Mrs Clinton said.

She goes on to say that she isn’t against wealth or business, but that the middle class needs help.

If you listen to the democrats there is no middle class. Barack Obama thinks that rich starts at $97,500 – the amount over which an individual is not required to continue contributing to Social Security for that year (SS Cap).

Other democrats believe that poor should be anything below $84,000 (witness the ‘4-times-the-poverty-rate’ upper limit for SCHIP).

That kind of leaves the middle class at $84,001 to $97,499. No wonder she’s worried about income inequality and the middle class. There aren’t many there in that very narrow window… (and I’m in the Poor section)

Income inequality is essential to the economy. Without income inequality there’s nothing better to strive for. All during my life I have moved up and down in income. I have, however, striven for more. All of us want more for ourselves and our families. Some of us work hard to achieve that. Others expect it to be given to them. The actual value of the “more” is greater when you work for it. When you wait around to have it given to you, its value is greatly diminished.

Another thing that the democrats don’t seem to take into account is that the truly rich (the one percent that they’re always talking about) have money that isn’t income, so it isn’t counted as income or taxed as income. Interest earned is taxed as income, but the principle is not.

You can have mega dollars in accounts all over the world, invested or just in bank accounts. You may “earn” $50,000 a year in “income” from those accounts. You can still live a million dollar lifestyle because you can tap the principle. That’s kind of where a consumption tax instead of an income tax comes into play. That’s where Dems can get the “rich” to pay “their fair share” of the taxes… They have more money, they buy more stuff. And higher cost stuff. Where Joe Blow maybe buys a 10-year-old used car for his 16-year-old (if Joe doesn’t make Joe, Jr. buy his own car), John Dough buys Junior a Brand-spanking-new Hummer, or Corvette, or Tesla.

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