As the UK budget looms, expect a lot of talk of the "broadest shoulders" and "fairness". Yet the proportion of top-rate taxpayers has exploded and income inequality is already near decade-long lows - higher taxes won't just hit "the rich". https://t.co/WyHnLzHIOv ...

It is time now for money power politics. Despite uncertainty in the economy, higher prices, and consumer sentiment reaching near record lows, this month about 187 million people are expected to shop from Thanksgiving through Cyber Monday this year, according to the National Retail Federation. That is a recordbreaking number.And last month, home sales rose to their highest level since February. But the biggest surprise came with today's jobs report. The delayed number showed that the US added 119,000 jobs in ...

are the voters who are speaking out on high prices in this economy and that's just what they're going through. Then there's the wealth gap, tech boom, Wall Street bull market raging on and this gap is not just about political messaging. In fact, if there were no elections on Tuesday and none of this had taken flight in sort of the public debate, income inequality would still be surging, driven both by the stock market gains and choices in US law and regulation, which currently reward the wealthy far more th ...

Economic Discontent and Wage Growth - The election of Democratic socialist Zoran Mambdan Mamani in New York City reflects significant voter discontent with the current economic climate, highlighted by a high voter turnout [1] - Bank of America reported that wages for higher-income Americans increased by 3.7% in October, while middle-income wages rose by 2%, and lower-income wages only increased by 1%, marking the largest recorded gap [2][3] - The New York Fed's report indicated rising serious delinquency rates among younger demographics, further emphasizing economic strain [3] Consumer Sentiment and Spending Patterns - Lower-income Americans are experiencing a more rapid increase in prices compared to wealthier individuals, leading to greater pessimism about wage growth in the coming year [4] - Individuals earning $30,000 or less have become significantly more pessimistic about the economic outlook compared to those earning over $100,000, as evidenced by decreased visits to McDonald's from lower-income customers [5] Monetary Policy and Its Impact - The Federal Reserve's monetary policy, while a blunt instrument, may provide some relief to lower-income individuals, particularly those with credit card debt or first-time home buyers, although it may inadvertently raise housing prices [6][7] - Tariffs disproportionately affect lower-income Americans, who spend a larger share of their income on consumable goods, resulting in a higher percentage of their income being spent on tariffs compared to wealthier Americans [8]

RT NumbersUSA (@NumbersUSA).@JDVance was correct in pointing out how mass immigration depresses wages and job opportunities.In the mid-20th century, immigration was low and income inequality fell. This was an era when the American middle class was thriving. https://t.co/UET320eYH5 ...

South Africa’s township businesses, predominately owned by the Black majority in a nation with one of the world’s widest levels of income inequality, are struggling to survive https://t.co/j99IqihkBS ...

Core Viewpoint - The discussion around billionaire taxes centers on the potential impact of taxing the ultra-wealthy at the same effective rate as average citizens, with various interpretations of what "tax rate" means [1][2]. Tax Rate Definitions - The term "tax rate" can be interpreted in three main ways, each leading to different revenue outcomes [3]. - The first interpretation focuses on effective federal income tax rates, where average U.S. filers pay approximately 14% to 15% of their income in federal taxes, representing a conservative estimate [3]. - The second interpretation considers the total tax burden, which includes federal, state, payroll, local, property, and sales taxes, with typical households paying around 27% of their income in combined taxes [4]. - The third interpretation treats the tax as a wealth tax, where billionaires would pay the same percentage of their total wealth annually as average individuals pay of their income [4]. Revenue Scenarios - ChatGPT analyzed three scenarios to estimate potential revenue from taxing billionaires [5]. Scenario 1: Matching Federal Income Tax Rates - If billionaires paid the same effective federal income tax rate as average Americans (around 14% to 15%), it could generate tens of billions annually, but this approach has limitations due to much of billionaire wealth growth being from unrealized capital gains [6][7]. Scenario 2: Matching Total Tax Burden - This scenario would require billionaires to pay about 27% of their economic income in combined taxes, similar to typical households, potentially raising hundreds of billions annually and significantly reducing income inequality [8]. - Implementing this would necessitate major changes in capital income taxation, including closing avoidance strategies and possibly introducing new tax mechanisms [8].

Income Inequality Measurement - Singapore has updated its methodology for calculating the Gini coefficient [1] - The update aims to measure income inequality more accurately [1]

Core Insights - CEO pay at top American companies reached a median of $16.8 million in 2024, marking a 7.4% increase from the previous year, while average worker pay rose by less than 4%, insufficient to keep pace with inflation [1][2] Executive Compensation Structure - Executive pay is typically structured with multiple components, including performance-based pay linked to company stock performance, base salary, bonuses, stock awards, stock options, and perks [4][7] - Compensation decisions are made by a board compensation committee, often with external consultant support and some input from shareholders [4] Historical Trends - There is a significant and widening gap between executive pay and worker pay, with CEO-to-worker compensation ratios increasing from 21-to-1 in 1965 to 290-to-1 in 2023 [7] - From 1978 to 2023, CEO pay increased by 1,085%, while typical worker compensation only rose by 24% [7] Comparative Metrics - CEO compensation has outpaced that of other high earners, such as senior lawyers and investment bankers, indicating a unique trend where CEO pay has grown faster than the top 0.1% of wage earners [8][9] - The compensation structures for CEOs have increasingly been tied to equity grants and performance shares, allowing for exponential growth when stock prices rise, unlike other high-income professionals whose earnings have tracked broader economic trends [9]

Core Insights - The spending of the top 20% of U.S. households has significantly outpaced inflation since the pandemic, indicating a reliance on wealthy individuals for economic stability [2][3] - A warning has been issued regarding the potential economic trouble if the spending of these affluent households decreases [2][3] - There is a growing financial divide in the U.S. economy, with higher-income households experiencing stronger wage growth compared to lower-income households [3] Economic Impact - The U.S. economy is largely powered by the spending of wealthy individuals, and as long as they continue to spend, the risk of recession remains low [3] - However, a shift towards more cautious spending by these households could lead to significant economic issues [3] - Moody's Analytics has indicated a 48% probability of a U.S. recession within the next 12 months, highlighting concerns about rising inequality and a "jobs recession" [3] Income Inequality - Jamie Dimon, CEO of JPMorgan Chase, has commented on the growing income inequality, emphasizing the need for economic growth that benefits everyone [4] - Dimon pointed out that the bottom 30% of income earners have not seen improvements, contrasting with the success of the top 0.1% [4] Market Performance - The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ) have shown significant increases of 12.9% and 15.66%, respectively, reflecting market responses to economic conditions [4]