Tale of 2 Incomes : Part THREE – Oh, the Horror and We call it the American Way.

One wonders, if an American earning $100,000/year circulates a larger percentage of his or her salary/income directly into the domestic economy than the average Billionaire, what would be the contribution of an American making $50,000/year?

Using the same measures (Part TWO) – if we look at the 6,108 lower middle class Americans salaried @ $50,000, who could be employed on the combined salaries of Charif, Marc and Larry – there would be an even greater amount of money contributed to the American economy as you will see.

Paying – $6,913 FED Taxes and $3,100 in Social Security leaves $39,987.

With this amount to live on this family can’t afford to save for college, and will rely on financial aid and loans when the time comes.

So how much will they circulate? –  Basically, every dollar that comes in, since their expenses don’t vary greatly from the upper middle class.  Of course, they will find less safe neighborhoods to live in, with lower quality schools. Perhaps they won’t qualify for a mortgage, so they will actually have to pay rent, paying more for less value.  And maybe they will have one car, instead of two.  But beyond that, they won’t be able to reduce their basic expenses much more than that.  But rest assured – All of their $39,987 will be in circulating through the WHOLE American economic spectrum, in addition to the debt they are accruing to pay for what they can’t afford to pay for on this salary.

$39,987 (salary minus FED and social) x 6,108 professionals (@ $50,000) equals –  $244,240,596/year in circulating in the WHOLE economy.

That is $53,710,698 more than would be circulated by the upper middle class professionals who are contributing $190,529,898.

And for it to be possible for the 3 CE0’s to circulate the same amount of  money into the American economy from their paltry combined salary sum of $305,439,737 which is $184,628,782 AFTER taxes

– the ONLY way they could be as generous to the American economy as the lower middle class worker – would be to LOWER their taxes!!!!!!  Because at their present salaries they would have to pay out a combined $59,611,814 MORE toward the economy in order to equal the same circulation levels of the 6,108 workers earning $50,000/year.

EUREKA – NOW I understand why it is so important to lower the taxes of the average billionaire or millionaire.  Because they are having SO much difficulty contributing to the economy to the same degree as thousands of workers collectively earning the same amount!!!!!

This is why our Government has been so compassionately giving them a helping hand, because THEY truly understand the great economic burden these Billionaires and Millionaires are under to support the economy in the same manner that the middle class once did when our economy was healthy and productive for all Americans, not just the 1 %.

And if this reality doesn’t get your gag reflex going, you are indeed of IRON stomach!  But let me push you close to inevitable nausea.

I propose that these WEALTH PRODUCING BARONS OF CAPITAL, probably circulate 10 to 25 per cent of their income TOPS, if that … the rest is sitting in their stock portfolios that are heavily invested in THEIR companies, of course! (As well as the companies of their OTHER billionaire buddies, or millionaire buddies, if they are slumming it.)  And then of course the capital gains tax for them is only 20% on long term investments.  Hmmm … I wonder what incentive there would be to circulate the money throughout the American economy, if you had a 19.6% tax rate DISINCENTIVE for circulating your money throughout the economy, brought to them all wrapped up in a pretty bow compliments of the US congress?

Tax Bracket Capital Gain – (http://www.moneychimp.com/features/capgain.htm)
Tax Rate  Short Term   Long Term

39.6%        39.6%          20%

And how much of this invested money “circulates into the economy” … hmm … well, I guess it depends upon the following:

1) how many shareholders are ACTUALLY Americans selling their stocks on a regular basis
(Read this  report to  see how much foreign investment is influencing American corporate practices  http://selectusa.commerce.gov/sites/selectusa.commerce.gov/files/documents/2014/january/2013-12-31_selectusa_report_-_fdi_in_the_united_states.pdf); The percentage of foreign shareholders is ever-increasing, while the percentage of American shareholders is decreasing yearly.

2) How many employees of these public companies are employed in the US of A!!!
3) How many factories of the public companies are located in the USA!

Because as I have shown you,  the CIRCULATION of WEALTH is fueled primarily via EMPLOYEE salaries and the companies’ capital expenses made in the U.S. on companies that are located in the U.S.

This is how it works, folks!

Don’t drink the Kool-Aid ANYMORE — The American billionaire/millionaire club has been socking away the monies they have reaped from the American consumer into self-serving investment portfolios … and firing American workers for greater personal profits, and exporting factories/operations for even greater personal profits for decades now.  These American VAMPIRES of American WEALTH have been SUCKING the LIFE BLOOD of the American Economy Dry since the 80’s and LEAVING U.S. (the American 99 %) with the BILL!

Support the TRICKLE UP Theory – Buy SMALL or NOT AT ALL!  Buy used or be abused!

I have double-checked my amounts.  And even though I am no mathematician, nor economist, I challenge all and sundry to check my calculations and see if any errors on my part vary enough to contradict the basic truth that a larger middle class earning the same amount earned by 2 billionaires and a millionaire serves the American economy far better.  It is time to TRICKLE UP rather than down!

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