The Dog’s Bollocks

Truth is like a dog’s bollocks – pretty obvious if you care to look.

‘Trickle-down’ a failure as the rich get richer

Trickle-downThe Age reports today that Americans earned a smaller average income in 2005 than in 2000, the fifth consecutive year that they had to make ends meet with less money. Robert S. McIntyre, the director of Citizens for Tax Justice, said the tax savings at the top, combined with lower average incomes after five years, “shows that trickle-down doesn’t work”.

Who would have thought? But then again the only true believers in the trickle-down effect are the suck-it-up beneficiaries of generous tax cuts and breaks for the wealthy.

AMERICANS earned a smaller average income in 2005 than in 2000, the fifth consecutive year that they had to make ends meet with less money, new government data shows.

While incomes have been on the rise since 2002, the average income in 2005 was $US55,238 ($A68,800), nearly 1 per cent less than the $US55,714 in 2000, after adjusting for inflation.

However, nearly half of Americans reported incomes of less than $US30,000, and two-thirds make less than $US50,000.

The combined income of all Americans in 2005 was slightly larger than in 2000, but because more people were dividing up the income pie, the average remained smaller.

The growth in total incomes was concentrated among those making more than $US1 million. The number of such taxpayers grew by more than 26 per cent from 2000 to 2005.

These individuals, who constitute less than a quarter of 1 per cent of all taxpayers, reaped almost 47 per cent of the total income gains in 2005, compared with 2000.

The fact that average incomes remained lower in 2005 than five years earlier helps explain why so many Americans report feeling economic stress despite overall growth in the economy. Many Americans are also paying a larger share of their health care costs and have had their retirement benefits reduced.

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Filed under: Economics, Ideology

6 Responses

  1. phil says:

    The plan works, we’ve known that for a long time. Getting it reversed is the issue.

  2. David Cay Johnston says:

    The story cited above is properly attributed to The New York Times.

    David Cay Johnston
    Reporter
    The New York Times

  3. slim says:

    Thanks David.

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The Dog’s Bollocks

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