Under President Obama, income inequality improved - and all it took was one thing

[applegrove]

Under President Obama, income inequality improved - and all it took was one thing

by Mark Sumner at the Daily Kos

http://www.dailykos.com/stories/2016/6/9/1536615/-Under-President-Obama-income-inequality-improved-and-all-it-took-was-one-thing

"SNIP............


Why has income inequality been growing so quickly in the last few decades, and how can it be addressed? Really, it's not a great mystery.


Income inequality declined abruptly in 2013 after President Obama and Congress negotiated an increase in taxes on the wealthiest Americans, according to new federal data.

Income inequality soared when taxes on the rich were cut, cut, and cut again. In particular, reducing taxes on capital gains made it possible for those at the top of the income ladder to reward themselves without worrying about paying their fair share. The change that went into effect in 2013 was primarily a 3.8 percent increase in the tax on capital gains. That was enough to tip the long-growing rate of inequality into decline.


"That decrease in income inequality stemmed primarily from the higher rates faced by high-income taxpayers in that year, which made the federal tax system the most progressive it has been since the mid-1990s," the nonpartisan Congressional Budget Office wrote in the report released Wednesday.



..............SNIP"

[uponit7771]

1. Obama had to correct a lot of wrongs and did the best he could

[Agnosticsherbet]

2. Most liberal President since Johnson.

He stopped the rightward drift and shoved us back to the left.
We need another liberal to continue the move. Fortunately, we have one.

[applegrove]

3. The Democrats behaved with integrity over the last 35 years and because the right were using

diabolical arts, the whole political spectrum moved to the right. Now, thankfully, the left knows all the GOP fictions and we are moving back to the left. And example of behaving with integrity was Al Gore, not wanting to put the country through more trauma, gave up the fight with the supreme court and George W. Bush after the election and George W. Bush became President. I would not want to live if I did not have integrity. It is who I am. But society needs to be better at pulling down GOP or rightwing memes in order to not be destroyed by their set ups and lies.

[progree]

5. Also, the basic capital gains rate on the top bracket went from 15% to 20% in 2013

Capital gains tax rate under Bush was 15% for the top brackets.

Obama raised it from 15% to 20% in the top bracket

Additionally, as part of the ACA, he added the Net Investment Income Tax (NIIT) surchage of 3.8% on the top 2 brackets.

Thus, on the top bracket -- roughly the top 1% -- the total capital gains rate went from 15% to 23.8%, which is 23.8/15.0 = 1.59 times higher than under Bush.

[mountain grammy]

6. The capital gains tax scam should be eliminated..

income is income and all should be taxed the same. The capital gains tax is a giveaway to the rich and nothing else.

[Rex]

7. He is not leaving for a while, yet I already miss him!

Obama has had to clean up so many GOP messes and put out so many GOP fires, we are all going to miss him.

[applegrove]

8. I know.

[ErikJ]

9. The higher the top rate the less they stash in Bermuda.

And the more workers make generally.