Friday, December 19, 2014

Closing the income gap

This is from an article on CNN today What does it take to make it into the top 1%? In 2012, it took at least $435,000 in adjusted gross income to be considered one of the fabled top 1% households, according to the latest data from the IRS. That's a healthy jump from the $389,000 it took the year before, especially considering how low inflation has been in recent years. The number of people admitted to this exclusive club: nearly 1.4 million households. Collectively, the top 1% made about 22% of all income reported in 2012, but paid 38% of total federal income taxes collected. For those who favor redistribution of income here is some data for you to mull over. If the top 1.4 million made $435,000 that comes to $600 billion. Now if we share that with the other 140 million working families each family would get $4,200. You cannot close the income gap by taking from the rich and giving to the poor because today, as has been the situation throughout history, there are too few rich and too many poor. The way to help the lower income groups is by offering them better paying jobs and a good place to start is by opening up the energy business.

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