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How does income inequality impact federal, state, and local governments?
I'm asking from an educational standpoint. Considering that durring the most recent economic downturn, most jobs that were lost were middle-wage, most jobs added since the "recovery" are low wage, and 93% of income gains have gone to the 1%. What impact is it currently having, and what will it do to our future?
How does income inequality impact federal, state, and local governments?
I'm asking from an educational standpoint. Considering that durring the most recent economic downturn, most jobs that were lost were middle-wage, most jobs added since the "recovery" are low wage, and 93% of income gains have gone to the 1%. What impact is it currently having, and what will it do to our future?
Do you have any sources for these statements?
The 1% accusation ha become an euphemism that suggests the filthy rich who are accumulating large incomes and assets at the cost of people in the 99%.
The other side of the coin, of course, is that the 1% is paying the Tax load for the people cry babying about this situation, or the 50% of Americans who now receive Entitlements from the Government which has collected taxes from the Golden hen they are complaining about.
What seems rational to me is that 50% of the people ought be praising this Great Golden Hen.
The irrational insanity of other people, groups, (like the anti-Wall Street movement), and especially politicians is strange, indeed, in building a case against the 1% (which has been whittled down to such a low number).
^^ Try being constructive instead of going off into partisan lala land.
To the OP: Logically the impact would hit either state/local government more than federal. Feds just print more money. States have the ability to borrow if voters approve. Same with local, but there are fewer voters at the local level.
In terms of local, my parents town for instance, economic activity has never recovered from 2008. You see more people delinquent on taxes, etc.
The 1% accusation ha become an euphemism that suggests the filthy rich who are accumulating large incomes and assets at the cost of people in the 99%.
The other side of the coin, of course, is that the 1% is paying the Tax load for the people cry babying about this situation, or the 50% of Americans who now receive Entitlements from the Government which has collected taxes from the Golden hen they are complaining about.
What seems rational to me is that 50% of the people ought be praising this Great Golden Hen.
The irrational insanity of other people, groups, (like the anti-Wall Street movement), and especially politicians is strange, indeed, in building a case against the 1% (which has been whittled down to such a low number).
I do have a source. I choose to not post it because I wanted to know what the impact would be in the case that it is true. Also, I did not want the topic to become about the source, which is controversial. As said I am asking this question from an educational stand point.
How does income inequality impact federal, state, and local governments?
I'm asking from an educational standpoint. Considering that durring the most recent economic downturn, most jobs that were lost were middle-wage, most jobs added since the "recovery" are low wage, and 93% of income gains have gone to the 1%. What impact is it currently having, and what will it do to our future?
Basically its the impact that easy survival and no need to develop skills that makes the effect. There are plenty of higher skilled jobs but a shortage which means supply and demand makes for competition to obtain those skills. That drives up what it take to obtain ad keep people with those skills. More and more we are at a point where one or a fewer people run computerized Mcchines and manufacturing that took numerous people I the past and they are highly skilled and compensated for that.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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The impact depends on the location. Places like Detroit have felt it the most. Our city east of Seattle made it through the bad times with plenty of money in the bank due to the high property taxes and expensive homes, and minimal foreclosures. The only layoffs there were in the building permit department. The city had money to pay them but the employees had nothing to do for 2-3 years until development started back up. Meanwhile the county has stopped maintaining some roads due to lack of funds, the transit system is making drastic cuts in routes, and the state had to reduce many services.
How does income inequality impact federal, state, and local governments?
It doesn't, since there is no such thing as "income inequality."
Quote:
Originally Posted by candycanechick
I'm asking from an educational standpoint. Considering that durring the most recent economic downturn, most jobs that were lost were middle-wage, most jobs added since the "recovery" are low wage, and 93% of income gains have gone to the 1%. What impact is it currently having, and what will it do to our future?
Well, first, you should learn how to spell.
After that, you can learn the differences between wages/salaries, earned income, unearned income, income and wealth.
Once you do that, then maybe there could be a discussion on the matter.
How does income inequality impact federal, state, and local governments?
I'm asking from an educational standpoint. Considering that durring the most recent economic downturn, most jobs that were lost were middle-wage, most jobs added since the "recovery" are low wage, and 93% of income gains have gone to the 1%. What impact is it currently having, and what will it do to our future?
That is an interesting question.
I would focus on state or local government level. There are WAY to many variables to answer the question.
I did notice your comment about a "controversial" source. I was involved with a very polarized political issue and the economic component was a critical part of the argument. On the "left" and "right" of the issue there were a lot of claims and counter-claims made.
The folks that got it right were the civil servants that wrote the EIS's and other public documents. They had less of an axe to grind since in all probability they would be keeping their jobs no matter the decision. Yes, politicians do try to influence public documents. However, most are smart enough to leave the professionals alone in the analysis.
So my recommendation is to seek out those government documents. Those are usually buried in policy analysis done for various state agencies.
There are some interesting papers produced by the Office of Financial Management (OFM) for the state of Washington that skirt some of these issues. Washington state is dependent on sales taxes and a Business and Occupation Tax on Gross Receipts. The state gets 80% of its tax revenue from these sources.
The state has also exempted most large corporations like Boeing, MicroSoft, Paccar, Weyerhauser from paying much in B&O taxes so it is mostly small businesses that pay those taxes. OFM had a publication that showed those corporations receiving the tax breaks only paid 5% of the B&O taxes in the state.
When I called OFM as asked how much Boeing paid in taxes it was confidential information and they would not release. So that is the type of barriers that you will run into when searching for data.
Anyway, use the "controversial" sources as a starting point. Find those government references and then do your analysis.
Either you take a minimum wage job with no education or you pay BIG BIG bucks to get an education to get a job paying a little more but after you calculate your debt:income ratio it is very unfavorable.
Government guarantees loans (now loans directly) so Tuition and other School related costs adjust to what the student can borrow not what the market can bear. This is why there are so many graduates with LOADS of debt with their degree. In short, they paid way too much for it.
To be in a higher wage bracket, in short, you have more student loan debt and you are paying more in taxes.
Either way, the system is designed to keep you at poverty.
I would focus on state or local government level. There are WAY to many variables to answer the question.
I did notice your comment about a "controversial" source. I was involved with a very polarized political issue and the economic component was a critical part of the argument. On the "left" and "right" of the issue there were a lot of claims and counter-claims made.
The folks that got it right were the civil servants that wrote the EIS's and other public documents. They had less of an axe to grind since in all probability they would be keeping their jobs no matter the decision. Yes, politicians do try to influence public documents. However, most are smart enough to leave the professionals alone in the analysis.
So my recommendation is to seek out those government documents. Those are usually buried in policy analysis done for various state agencies.
There are some interesting papers produced by the Office of Financial Management (OFM) for the state of Washington that skirt some of these issues. Washington state is dependent on sales taxes and a Business and Occupation Tax on Gross Receipts. The state gets 80% of its tax revenue from these sources.
The state has also exempted most large corporations like Boeing, MicroSoft, Paccar, Weyerhauser from paying much in B&O taxes so it is mostly small businesses that pay those taxes. OFM had a publication that showed those corporations receiving the tax breaks only paid 5% of the B&O taxes in the state.
When I called OFM as asked how much Boeing paid in taxes it was confidential information and they would not release. So that is the type of barriers that you will run into when searching for data.
Anyway, use the "controversial" sources as a starting point. Find those government references and then do your analysis.
There is no lack of information on most of these deadbeat corporations that want the states citizens to shoulder their rightful tax burden. This from e TurboNews:
"Citizens for Tax Justice has shown that over the decade 2003-2012, Boeing made $35 billion in pre-tax U.S. profits, yet paid negative tax to Washington state of $96 million and a whopping $1.8 billion in federal income tax refunds over that same period!"
The CD corporate cheerleaders seem to think that we should be catering to these corporate gods, but for my money I'd rather give the funds to the poor.............
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