Over the last 70 years, the United States economy can be divided into two periods: the time immediately after World War II, and the past three decades when worldwide economic forces and government policies caused it to soar. Today, President Obama appears to be setting out to begin a third period.
The average post-tax income of the top 1 percent of households has jumped by roughly $1 million since 1979, adjusted for inflation, to $1.4 million. The experts are still sorting through the details from Thursday’s speech by Obama, however, various tax cuts and credits aimed at the middle class and the poor would increase the take-home pay of the median household by roughly $800.
Tax increases on the top 1 percent, meanwhile, will most likely cost $100,000 a year. President Obama’s proposals are just like as Franklin D. Roosevelt’s tax increases on the wealthy followed a stock market crash, which had already depressed poeple’s incomes. The combination has the potential to reverse a significant portion of the inequality trends of the last few decades.
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