The glory of debt spending and casino financial markets. What is the typical income, tax situation, and household income for Americans? Americans claiming student loan deduction surges from 4 million to 10 million in roughly one decade. According to IRS AGI needs to be above $1 million to qualify for top one percent.
This weekend I spent time digging through IRS and Social Security data to get a better perspective on working and middle class Americans. I find it amazing that in a consumer driven economy, meaning we live to spend in some respect that the media never even bothers to focus on household incomes. Even on self branded “business” programs with fancy watermarks which tout their major expertise on knowing about Americans they fail to do any analysis on income. Need we even point out their missing of the biggest economic recession in our recent history? This silence as you know is purposeful. The media is largely beholden to advertisers and it might be perceived as a downer to tell the public how far back they have gone in the last decade on the income treadmill. It is understandable although not acceptable that large television outlets do not discuss wages and income but what about the respectable press? Where is there voice? Either way, as we dig into the data it is understandable why so few even bother to cover this unsavory topic.
Tax return data by income levels
First, let us gather a glimpse of actual household tax filing information:
With all the discussion about the 99 percent I think you have many people that are largely off on what they assume is the one percent. The media is largely to blame and I have even seen business outlets interview people that claim to make $100,000 and are afraid of being taxed because they are in the one percent. Uh, not exactly.
Let us examine the data:
66 percent of tax returns show an adjusted gross income of $50,000 or less
31 percent of tax returns show an adjusted gross income between $50,000 and $100,000
So with these two groups, you are covering 97 percent of all households. Now keep in mind we are looking at adjusted gross income so actual wages will be higher, but not by much.
“So what does it take to be in the top one percent? You will need an adjusted gross income of $1,000,000 or more.”
Even folks with an AGI between $200,000 and $500,000 don’t fall in this category. Of course Wall Street investment bankers want to make people believe that even with a $100,000 household income that somehow if investment banks were regulated that they will lose their entire life savings (this is actually already happening with housing and the casino known as Wall Street).
Let us dig deeper into the tax data.
Read the rest at My Budget 360