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I draw the lines based on the taxes. Those are a good proxy for true power. If the bulk of your tax bill comes from special capital gains rates on the fraction
by jjoonathan 5y ago
I draw the lines based on the taxes. Those are a good proxy for true power.
If the bulk of your tax bill comes from special capital gains rates on the fraction of your net-worth-increase that you are ignominiously forced to admit constitutes capital gains, you're an elite. If the bulk of your tax bill comes from a higher income tax tier, you're middle class. If the bulk of your tax bill comes from a lower income tax tier, you're correspondingly lower class.
Needless to say, the principle that taxes reveal true power does not lead me to agree with your premise that 60% of the middle class has disappeared into the upper class.
- esoterica 5y agoA non-founder CEO (not a Zuckerberg/Bezos type that owns a large fraction of the equity in the company) that makes $20 million a year will probably be paying regular income taxes on most of their income. I’m not sure you can accurately describe them as middle class.
- jjoonathan 5y agoIf this hypothetical CEO indeed pays regular income taxes on $20 million a year, I'd describe them as new money that hasn't yet assimilated into the power structure but will probably figure it out soon enough. With help, if necessary, and at those levels the help will seek them out.
- jackcosgrove 5y agoJust to clarify, I'm saying of the small percent of the middle class that disappears every year, slightly more than half rise while slightly less than half fall. I acknowledge it was unclear, but I don't mean that 60% of the entire middle class is now upper middle class. https://www.brookings.edu/research/squeezing-the-middle-class/ https://www.brookings.edu/research/squeezing-the-middle-clas... > the main reason for the shrinking of the middle class (defined in absolute terms) is the increase in the number of people with higher incomes