Inequality Flashcards
84% of all stocks are owned by…
…the wealthiest 10%
-according New York University economics professor Edward Wolff
A rising tide lifts all boats.
Total wealth grew 3% a year (average)
Billionaires’ fortunes grew 7-8% a year.
- Gabriel Zucman, economist at UC, Berkeley.
The estate tax affects…
.2% of estates in 2017
5,200 out of 2.7 million
How many farms are impacted by the estate tax?
In 2017
Only 50 small farm and small business estates paid any estate tax
On average they owed less than 6% of their value in tax.
-Tax Policy Center
Farming families are forced to sell off land and equipment, or take out loans to pay the estate tax.
Yes, if you inherit a farm worth millions, you should have to sell some of it. How are other businesses suppose to grow if families can aggregate wealth forever?
You favor Paris Hilton’s entitlements over the hard working entrepreneur.
Tax Deductions,
They benefit…
- People making >$400,000
- I.e., 5% of tax payers
They receive more than half the benefits from tax deductions.
- Gambling losses
- Business dinners
- Money put into a retirement accounts
- Accountant fees
Charitable tax donations
Billionaire Mitchell Rales
Donated his modern art collection to a museum and received a tax deduction. This museum is not open to the pubic and is located right next to his house
Segregation through zoning
Write the zoning ordinance with minimum house square footage
to prevent housing for the poor from being built
to keep lower income kids out of schools or neighborhoods
Tax exclusion for Employer-Sponsored Insurance (ESI)
Costs the federal government an estimated $260 billion in income and payroll taxes in 2017
It is the single largest tax expenditure.
Disproportionately benefits the wealthy.
TANF Budget
Temporary Assistance for Needy Families
Budget: $14.9 billion (2018)
Spending the TANF block grant
- Cash assistance
- Promote job preparation & work
- Prevent out of wedlock pregnancy
- Encourage formation of 2 parent families
Michigan TANF Spending
12% on cash assistance
30% promoting job preparation & work
- e.g., $100M on college scholarships
- e.g., $6M on scholarships for students from families making 6 figures
Diminishing Marginal Utility
The more money you have the less you need it, which is why a progressive tax system is so important.
Blaming a poor person for not getting a better job
You accept that while their job is necessary whoever does it should be poor.
E.g., teachers necessary and poor
The more money you have the less you need it, which is why a progressive tax system is so important.
Diminishing Marginal Utility
