Monday, April 18, 2016
45% of Americans pay no federal income tax
It is Tax Day in America. Yet, despite the myths, 45% of Americans pay no Federal income tax. The upper 20% of Americans pay 69% of the Federal taxes.
What we are seeing in America is the elimination of the Middle Class. The primary reason is now technical - there is no longer a need for most human labor. Computers and robotics and replace most human labor.
As such, the people who control the capital are becoming quite rich. Labor is now global and cheap. And machines can replace most pesky humans. Traditional economics of assuming labor is required is no longer relevant. So cutting taxes and increasing demand will not necessarily see the usual increase of the demand for labor.
Unless policy changes, we will continue to see more mega rich and more poor. The mass of humanity will live in Brazil like slums while the mega rich live behind gated communities protected by private armies.