I think it's because it's exceedingly and disproportionately hard to move up the social ladder. Think about it from the standpoint of the welfare collecting, food stamp using, medicaid candidate. The government provides an awful lot of support for them while they don't really need to do all that much to receive it. Now let's say something hits this person and they want to better themself. So they go out, attend night classes, get a diploma and start making a little money. They find they run into taxes. They go high enough, they aren't below the poverty line anymore. There goes all that government aid they were receiving. So now what happened. They're essentially where they were before, except now they have to work 3-4 times as hard. Fine...let's say they don't like this, hit up colleges and technical schools, get a nice posh job. Let's say they double their salary and workload. The problem with this is, if you double his salary, a disproportionate amount gets taken out in taxes and he now qualifies for more and more taxes levied against him. Let's say he REALLY busts a gut and decides to start up his own business and does well. Let's make it a moderate sized, say 6-7 hundred thousand gross annually. He's suddenly got expenses associated with the business. He's gotta hire an accountant to manage his books. He's got employees. He's got operating expenses etc. so let's say he takes home 100k after all is said and done. Uncle sam will happily bit off around 34 of that leaving about 66k spending money. Not bad....except for the fact that he's had to up his productivity 1000%+ to get there. He's invested a huge part, if not a majority of his life to get there and all he can show for it is an income of around 70 thousand - living expenses per year where he could have been making 10,000 and getting by doing virtually nothing before. It all pretty much boils down to, the more you make, the more society will take a bite out of you and give to someone else. you make over 100k, they really chomp down on you. So it's actually very hard to break out when you think of it...too hard for most people.