Can you not understand that a married couple of software engineer YUPPYs making $250k combined is not even on the same planet as douchebag Buffett?
Yeap.
Can you not understand that a married couple of software engineer YUPPYs making $250k combined is not even on the same planet as douchebag Buffett?
The rest of his points were irrelevant because it presented a false dichotomy. Raising the taxes on the extremely rich is not mutually exclusive of raising the taxes on the ultra extremely rich too.
I've seen it repeatedly claimed here that the richest 2% of income earners are merely 'upper middle class', and it's important to dispense with that outrageous distortion.
I can't think of a single solitary issue where an individual in the top 2% of something would have his position referred to as being in the 'upper middle'.
Are students whose GPA's are in the top 2% of their graduating class called the 'upper middle'? No, actually as a general rule they would graduate summa cum laude, or 'with highest honors'. Maybe we should rename it the 'upper middle honor'.
Perhaps a chart would help you better:
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A household income of 250k is upper middle class in many parts of the country.
I can't see your chart because I'm at work, but I just want to make sure that I understand you correctly. You think that being in the "middle class" is related to the average household income of this country?
No it isn't.
In Manhattan, one of the wealthiest locations in the United States the median household income was $64,000 in 2007. $250,000 would be 400% of the median even in such an extreme example.
So what should the mean and standard deviation for the distribution of wealth be?I can't think of a single solitary issue where an individual in the top 2% of something would have his position referred to as being in the 'upper middle'.
Are students whose GPA's are in the top 2% of their graduating class called the 'upper middle'? No, actually as a general rule they would graduate summa cum laude, or 'with highest honors'. Maybe we should rename it the 'upper middle honor'.
Perhaps a chart would help you better:
![]()
So what should the mean and standard deviation for the distribution of wealth be?
Median and average household income is almost irrelevant. Using your logic, the middle class could never shrink or expand, it would always be the same perentage of people in the middle class. Every country in the world, no matter how impoverished, would have a middle class.
To him $250k in SF/LA/NYC is the same as Iowa.
My wife and I are well over $250k in Los Angeles and we 1) still rent and 2) have no wealth built up. In a couple years of saving more money she will stop working because it's not worth the marginal 60c on the dollar and she will stay home and take care of the kids.
Estate taxes of 50%+ on people with $5m+ net worth when they die. Add clauses to prevent giving all of your estate away when you fall terminally ill. Alternatively, increase enforcement of the "gift tax" in the event that billionaires try to dodge the estate tax.
You could also write in provisions allowing them to donate it all to charities, etc, to avoid giving it to the feds. You just need to dilute the ridiculous mountain of wealth at the top.
You would likely need further action to get the gini index down under 40 again, but this would go a very long way.
However, I must comment on one thing said in this thread. Someone mentioned that CEO's getting paid in stock is a bad thing. I would argue the contrary. Paying CEO's in stock as a tax dodge would have benefits for corporations.
CEO's will no longer be looking at driving up quarterly profits for a giant bonus and will have to think about the long-term health of the company. This would be especially beneficial to the finance industry that makes headlines for excessive bonuses and excessive stupidity on a weekly basis.
I would even go further and reduce the "gambling" level of market volatility by forcing stock and bond purchases to be held for 24 hours before they can be resold, and stock earned as compensation should be held for 365 days before it can be sold.
Median household income is most certainly not irrelevant, it only means that more needs to be taken into account if you were to standardize the measure across all countries. Within a single country with a relatively standardized income structure however, median income isn't irrelevant in any way, shape, or form.
Every time someone talks about the "upper middle class" and "middle class" you bring up average and median household income. If you defined the middle class using that method then you will always have the same percentage of people in the middle class. Clearly that's not how the middle class, or any class really, should be defined.
Claiming that two software engineers, developers, etc... that make 125k each are "rich" is laughable, especially in places like DC, NYC, LA, etc... Upper middle class, yes.
To him $250k in SF/LA/NYC is the same as Iowa.
My wife and I are well over $250k in Los Angeles and we 1) still rent and 2) have no wealth built up. In a couple years of saving more money she will stop working because it's not worth the marginal 60c on the dollar and she will stay home and take care of the kids.
Give me a fucking break, I live on the Gold Coast of CT (50 minutes from NYC), one of the most expensive areas of the country, make around 140K between me and my wife, we bought a house that's worth almost 500K on a 363K short sale recently and we have almost 100K in savings still (and that's NOT including our 401k/IRA). I live fairly close to asshole CEO's, wall street bankers, Athletes, Musicians and hollywood actors who raise my cost of living through the roof.
I can't imagine LA being all that different. Are you frigging renting the most expensive penthouse in LA or something? Yeah you have it so hard. Maybe you're just spending too much and don't save.
Edit: I re-read that, "WELL over 250K", you're either highly irresponsible with your spending or you're lying about something.
You make it sound like I've been making 250 my whole life. I'm still in my 20s.
Well for one thing, you said "Well over" 250K, which sounded to me close to 400K or more.
For another thing, it's a matter of cash flow. I cannot imagine how something like housing would be a problem for you, even in LA. I'm paying $1900 in PITI a month on my house in one of the most expensive areas in the country. 250K or over, you can afford a hell of a lot more than that for either rent or mortgage payments. In terms of cash flow, it just doesn't add up unless you're wasting money on crap you don't need.
Also, it's progressive, so only income in excess $250K would be taxed at a higher bracket rate.
20% on a $2 million house is a lot of money. Plus the payments and property tax is high on a $1.6m mortgage. But who the fuck is going to give me a $1.6m mortgage?
What the hell does that have to do with anything? A $50 million dollar yacht is expensive to someone with a million dollar salary too.
Doesn't change the fact that $250K is a lot of money whether you live in SF/LA/NYC or Iowa.
No it's not.
Give me a fucking break, I live on the Gold Coast of CT (50 minutes from NYC), one of the most expensive areas of the country, make around 140K between me and my wife, we bought a house that's worth almost 500K on a 363K short sale recently and we have almost 100K in savings still (and that's NOT including our 401k/IRA). I live fairly close to asshole CEO's, wall street bankers, Athletes, Musicians and hollywood actors who raise my cost of living through the roof.
I can't imagine LA being all that different. Are you frigging renting the most expensive penthouse in LA or something? Yeah you have it so hard. Maybe you're just spending too much and don't save.
Edit: I re-read that, "WELL over 250K", you're either highly irresponsible with your spending or you're lying about something.
Even at 250k I'm not sure how somebody can't be accumulating wealth. I am close to you (Stamford), pay over 2k for rent, have $1,400/mo for student loans, plus the cost to commute and work in the city, and I manage to fund my full 401k and save every month.
