I Am Entitled

newwileyTime to revisit that “fiscal cliff” that everyone is blathering about.  Let’s get some clarity, and take a look at the data, the actual facts of income distribution in the USA.

The chart below, from the US Census Bureau, lays it all out.  It’s not a graph that you see much in the news, and certainly not one that politicians use:  I’m not sure which is the more significant reason for this – that they don’t want people to see the facts; that they are incapable of understanding data charts; or that they assume the public is incapable.  Well, here goes…

US income distribution 2010

click to enlarge

As you can see, the Median Household Income is about $49,500.  That’s household income, not individual income, and the average household is about four people.  You know, parents, children, the usual deal, more or less…

So half of all households in America make less than that amount, with quite a lot of people concentrated in the bottom 1/5th of the income scale.  Of course, not everyone lives in NYC where housing is extremely expensive, but most people do live in metropolitan areas, and would you want to live with your family on $49K a year, or less…assuming that you don’t live on that now?

Sooo, in the negotiations over the ‘cliff’, the Republicans are holding out to keep taxes low for people making up to $1,000,000.  Those millionaires can’t afford more annual taxes!  Obama, because he’s a sap in negotiations, or maybe for reasons even worse to contemplate, gave in, and has proposed to raise the limit from $250,000, on which he campaigned, to $400,000.  Everyone making up to $400,000 gets a tax break again.

Meanwhile, he’s caving in on entitlements, i.e. payments to people through programs they pay into under specified ‘agreements’ worked out in Congress.  No freeloaders here:  you join the system and you get a described benefit.  These payouts benefit everyone who works, but they are obviously vastly more important for the people in the bottom 3/5ths of the scale than for the other 40%.

So here’s the thing…The negotiations are about giving a benefit to the top 2%, that grey bar on the right that represents everyone making over $250K (the chart isn’t wide enough to show each increment, so they lump them together), and cutting back on benefits to everyone else And the vast majority of the people who need those benefits being cut, really need them, to…er…live, you know…

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