Tuesday, February 20, 2007

More On Inequality

Income and Wealth

A new book tackles the problem of inequality head-on, and says how it is one of measurement. The thing is is that households who are considered wealthy usually have two incomes (counted together in the measure of wealth) instead of one as is usually the case for the poor, and the income of those considered poor do not include transfer payments. And the top 50% pay 96% of the taxes. E.g. funds indeed are taken from the rich and given to the poor.

But that doesnt mean all is well. There are still tax-breaks and program spending for special interests. All government spending is special interest spending, in that it takes from all (or most all) and gives to the special interests, while taking a cut for the bureacrats and contractors along the way. So until we have a flat tax or consumption tax - with thresholds for the poor and no tax loopholes for special interest manipulation - eternal vigilance is key.