Analysis: Obama plan brings cries of class warfare

Oh, waaaaaaaah.  Consider this:

  • A generation ago, top CEOs made 30 to 40 times the pay of average workers. Last year, CEO pay outpaced average worker pay by 344 times. ¹
  • As many as 43% of American workers in private industry don’t have paid sick days, according to 2007 data from the federal government²
  • American workers are continuing to put in the longest hours in the industrialized world — spending nearly one week more on the job per year than they did a decade ago. ³
  • Today the top 5% of households owns over 60% of America’s wealth—more than the bottom 95% of households combined. The 400 wealthiest people in America are all billionaires with a combined worth of $1.29 trillion which is more than the total GDP of Canada. The newest member of the billionaires club, John Paulson, made his money from the subprime mortgage fiasco. The bottom 20% of Americans basically have zero wealth. A household in the middle has wealth of about $ 62,000 but when you compare this to the top 1% of household’s average wealth of over $18 million, you can see what a huge difference there is in distribution. Income and wealth today are more unevenly distributed among Americans than at any time since the Roaring 20’s. 4

Class warfare isn’t so much fun when the shoe is on the other foot, now is it?

WASHINGTON – He’s not being timid, that’s for sure.

President Barack Obama’s first federal budget lays out the most far-reaching agenda for American life since Lyndon Johnson’s Great Society. But paying for it by having upper-income earners shoulder much of the cost quickly provoked cries of class warfare in Congress.

The Obama priorities reflected in the $3.6 trillion budget guarantee a fierce political battle ahead over taxes and spending. And despite the administration’s agonizing over the depth and global nature of the worst recession in decades, the new president’s budget forecasts a rapid U.S. recovery.

The budget outline includes activist initiatives on energy, health care, education and climate change.

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2 Responses to Analysis: Obama plan brings cries of class warfare

  1. Wizcon says:

    Back in the 90′s the Rich Dad series of books started up. The first “Rich Dad, Poor Dad” laid out how the wealthy organize them selves in general. All so clear and amazing. Pictures graphs etc.
    Multi incoporation levels where they bascially hire their own companies for outsourcing. Multilevel liability protection both tax wise and personal. Home offices, cars, equipment are all part of the corp and not held in their name personally. Problem is that, if not careful, it can be a house of cards.
    Here is a simplistic example:
    1.Person buys a rental property under a limited liability company
    Protected personally from any lawsuits related to that propaerty. Also has its own liability.Tax liability is decreased with expense’s related to that property.
    2. LLC buys 2nd property using equity and income from 1st property as collateral.
    3.Repeat. Buys a company car for xyz properties. Buys commercial building to house office
    4. Person starts another LLC. 1st LLC hires it to do maintanance and repairs for the first. Buys truck and equipment.
    There is two separate identities. The expense’s of hiring #2 are tax deductable to #1. Everything is separate. Insurance’s, liabilities.
    3. Business’s build to include Construction firm, Real estate office, title company and more. All hiring each other. You wake up everyday wondering what car to drive (figuratively) everyday.
    Whats really insane is that technically you can sue yourself for damgaes or breach of contract. You can also diversify. Buy a bowling alley.
    To simplify things on all these levels, you can incorporate.
    I won’t even go there with you. You can read the papers. AKA parent company.
    Is it any wonder that assets are so hard to find with the wealthy?

    Sage Reply:

    Good points, Wizcon.

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