Things Are Getting Worse: Median Household Income Has Fallen 4 Years In A Row

New numbers that have just been released show that things are getting worse for American families.  According to the U.S. Census Bureau, median household income declined to $50,054 in 2011.  That is a 1.5 percent decline from the previous year, and median household income has now fallen for 4 years in a row.  In fact, after adjusting for inflation median household income has not been this low since 1995.  These new numbers once again confirm what so many of us have been talking about for so long – American families are steadily getting poorer.  Incomes are going down and the cost of living just keeps going up.  This dynamic is squeezing more Americans out of the middle class every single month.  Others just keep going into more debt in an attempt to maintain their previous lifestyles.  As Americans, we really don’t like to hear that things are getting worse and that we are in decline, but unfortunately that is exactly what is happening.  Our economy does not produce nearly enough jobs for everyone anymore, the proportion of low wage jobs in our economy continues to grow, and the middle class is shrinking at an alarming rate.  Our politicians can deliver speeches about how great we all are until the cows come home, but it isn’t going to change the reality of our situation.  If we want different results we have got to start taking different actions.

When you take the median household income of $50,054 and divide it up over 12 months, it comes to about $4000 a month.

About half of all American households are making more than that and about half of all American households are making less than that.

So can an average family of four people make it on just $4000 a month?

Well, first of all you have got to take out taxes.  After accounting for all forms of taxation you will be lucky if you have $3000 remaining.

With that $3000, you have to pay for all of the following.

*Housing

*Power

*Water

*Food

*Phone

*Internet

*At Least One Vehicle

*Gasoline

*Vehicle Repairs

*Car Insurance

*Health Insurance

*Dental Bills

*Home Or Rental Insurance

*Life Insurance

*Student Loan Debt Payments

*Credit Card Payments

*Furniture

*Clothing

*Pets

*Entertainment (although it is hard to imagine any money will be left for that)

Have I left anything out?

The truth is that $3000 does not go as far as it used to.

No wonder American families are feeling so stretched financially these days.

Most families can’t even afford to think about retirement or investments because most of them are just trying to figure out a way to survive from month to month.

Unfortunately, economic conditions for middle income Americans continue to deteriorate.  Being in the middle class in America is like playing a perverse game of musical chairs.  More chairs are constantly being pulled out of the game and the middle class just continues to shrivel up.

The following are some more statistics that show that things are getting worse….

-In 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 55.1 percent are covered by employment-based health insurance.

-Health insurance premiums rose faster than the overall rate of inflation in 2011 and that is happening once again in 2012.  In fact, it is been happening for a very long time.

-In the United States today, there are close to 10 million households that do not have a single bank account.  That number has increased by about a million since 2009.

-Back in 1962, the wealthiest one percent of all Americans had 125 times the net worth of the median household.  Today, the wealthiest one percent of all Americans has 288 times the net worth of the median household.

-Back in 2007, 19.2 percent of all American families had a net worth of zero or less than zero.  By 2010, that figure had soared to 32.5 percent.

-According to a survey conducted by the Pew Research Center, 32 percent of all Americans now identify themselves as “lower class”.  In 2008, that figure was only at 25 percent.

-As I have written about previously, 61 percent of all Americans were “middle income” back in 1971 according to the Pew Research Center.  Today, only 51 percent of all Americans are “middle income”.

-62 percent of all middle class Americans say that they have had to reduce household spending over the past year.

-Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.

-There are now 20.2 million Americans that spend more than half of their incomes on housing.  That represents a 46 percent increase from 2001.

-According to the Federal Reserve, the median net worth of American families dropped “from $126,400 in 2007 to $77,300 in 2010“.

-Sadly, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.

-At this point, less than 25 percent of all jobs in the United States are “good jobs”, and that number continues to shrink.

-The percentage of working age Americans that are employed is smaller now than it was two years ago.

-The number of Americans that are financially dependent on the government is sitting at an all-time record, and it just keeps going up.

-If the labor force participation rate was the same today as it was back when Barack Obama first took office, the unemployment rate in the United States would be 11.2 percent.

That last statistic deserves some special attention.

If the exact same percentage of Americans were considered to be “in the work force” today as when Barack Obama became president, the unemployment rate in this country would be well over 11 percent.

But the federal government has pretended that millions upon millions of Americans have “left the work force” over the past few years and that allows them to tell the fib that the unemployment rate has actually declined to 8.1 percent.

Of course we all know that is a bunch of nonsense.  About the same percentage of Americans want a job today as was the case back in 2008.

But 8.1 percent looks way better than 11.2 percent does.

What makes all of this even more distressing is that this is the recovery.

Things are not going to be getting much better than this.  We are rapidly approaching the next wave of the economic collapse and all of the numbers posted above are going to be getting a lot worse.

So even though things may be tight for your family right now, you should enjoy these times while you still have them.

Someday we will look back on these years as “the good old days”.

Are You Better Off? 40 Statistics That Will Absolutely Shock You

Are you better off today than you were four years ago?  This is a question that comes up nearly every election.  This year the Romney campaign has even created a Twitter hashtag for it: #AreYouBetterOff.  The Democrats are making lots of speeches claiming that we are better off, and the Republicans are making lots of speeches claiming that we are not.  So are most Americans actually better off than they were four years ago?  Of course not.  One recent poll found that only 20 percent of Americans believe that they are better off financially than they were four years ago.  But the same thing was true four years ago as well.  Our economy has been in decline and the middle class has been shrinking for a very long time.  The Democrats want to put all of the blame on the Republicans for this, and the Republicans want to put all of the blame on the Democrats for this.  A recent CNN headline defiantly declared the following: “Decline of middle class not Obama’s fault“, and this is the kind of thing we are going to hear day after day until the election in November.  But obviously something has gone fundamentally wrong with our economy.  So who should we blame?

Sadly, you hear very little on the mainstream news networks or the talk radio shows about the institution that has the most power over our economy.  The Federal Reserve has far more power over our financial system than anyone else does, but the media and both political parties tell us that the Federal Reserve is “above politics” and that their “independence” must never be questioned.

Unfortunately, most Americans have gone along with that.

But the truth is that the debt-based financial system that the Federal Reserve is at the core of is absolutely central to our economic problems.  If you do not understand this, please see this article: “10 Things That Every American Should Know About The Federal Reserve“.

The Federal Reserve has done more to mess up our economy than anyone else has.

So shouldn’t they be held accountable?

That is a very good question.

Have you ever wondered why financial markets move so dramatically whenever Federal Reserve Chairman Ben Bernanke gives a speech?

The same thing does not happen when Barack Obama gives a speech.

That is because the financial markets know who holds the real power in our financial system.

But during this election season the American people are told to put all of their attention on the “red team” and the “blue team”.  We are told that the two major political parties are philosophical opposites and that they want to take the United States is two completely different directions.

The “true believers” on the blue team are completely and totally convinced that Barack Obama will be able to rescue the economy and save America.

The “true believers” on the red team are completely and totally convinced that Mitt Romney will be able to rescue the economy and save America.

Once upon a time I was one of those political activists.  I was fully convinced that America could be turned around if we could just get enough Republicans into office.

But then I noticed that nothing really seemed to change no matter who was in power.  I became disillusioned as I realized that Republicans were doing things pretty much the exact same way that Democrats were doing them when they got into power.

Yes, there are some minor differences between the two parties on taxes and regulations.

If we elect one guy over the other our economy might decline at a slightly different pace.

But in the end both political parties are taking us to the exact same place.

Down the toilet.

I wish that wasn’t true.

But we need to be honest with ourselves….

-Both parties fully support the Federal Reserve.

-Both parties supported the nomination of Ben Bernanke to a second term as the head of the Federal Reserve.

-Both parties endlessly push the job-killing “free trade” agenda of the global elite.

-Both parties see nothing wrong with running absolutely enormous trade deficits with the rest of the world.

-Both parties supported TARP.

-Both parties supported the “economic stimulus” packages.

-Both parties supported the auto industry bailouts.

-Both parties have run up massive amounts of federal debt when in power.

-Both parties have greatly expanded the size of the federal government when in power.

-Both parties are full of control freaks and both parties have added more layers of ridiculous regulations to our already overburdened society when in power.

-Neither party supports getting rid of the income tax or the IRS.

-Neither party has any intention of doing anything to prevent the coming derivatives crisis that could bring down the entire global financial system.

-Both parties are absolutely showered with cash from the big Wall Street banks.

-Both parties think that the TSA is doing a great job.

-Both parties supported the NDAA and the renewal of the Patriot Act.

-Both parties have greatly expanded the unconstitutional surveillance of American citizens by government agencies.

-Both parties are extremely soft on illegal immigration.

-Both parties have treated military veterans horribly.

-Both parties are absolutely packed with corrupt politicians that are living the high life at your expense.

-Neither party plans to balance the federal budget in 2013 if their candidate wins the election.

-Neither party has a plan that will fix our deeply broken health care system.

-Neither party has any plans to shut down the Federal Reserve.  In fact, both parties see absolutely nothing wrong with our current system.

Of course this list could go on indefinitely, but hopefully you get the point.

But I can understand those that are deeply frustrated with Barack Obama and that desperately want to avoid another four years of his policies.

I also believe that Barack Obama has been the worst president in U.S. history and that he and his entire cabinet should immediately resign in disgrace.

However, the Republican party foolishly chose to nominate the Republican candidate that was most like Barack Obama to run against him.

That was an enormous mistake.

No matter what the talk radio shows are telling you, the truth is that this country will continue on pretty much the same path no matter who wins the election.

I know that statement is going to make a lot of people angry.  But it is the sad reality of what we are facing.

Even if you focus on just the economy, the truth is that Mitt Romney’s “five point plan” is almost exactly the same thing that Barack Obama has been saying.

Many Americans believe that since Mitt Romney made lots of money on Wall Street conducting leveraged buyouts of vulnerable corporations that he understands how to fix our economy.

Sadly, that is not the truth.

I have listened to many Romney speeches about the economy and I keep waiting for some pearls of wisdom, but I have found that he is just as clueless about the economy as our other recent presidents have been.

Look, I know that there are a lot of people out there that have good hearts that want to have someone that they can believe in.

They want to believe that things can get better.

They want to have hope.

And I don’t blame them for that.

I just think that it is time to pull our heads out of the sand and realize that things are not going to be getting any better.

A political savior on a white horse is not going to come riding in to save the day.

So by this point in the article a whole lot of Democrats and a whole lot of Republicans are very upset with me.

But I am not against you.  There is way too much hate in our society today.  Even if we disagree with someone else we can still love them.

I just think that it is very important that we understand that there is not going to be a solution to our problems on the national level and that our economy is headed for collapse no matter who gets elected.

The total amount of debt in the United States has risen from less than 2 trillion dollars to nearly 55 trillion dollars over the past 40 years, and there is nothing that Barack Obama or Mitt Romney can do to prevent the “correction” that is coming.

So are Americans better off than they were four years ago?

Of course not.

But things will soon get a whole lot worse no matter how the election turns out.

The following are 40 statistics that will absolutely shock you….

#1 During the time Barack Obama has been in the White House, median household income has fallen by 7.3 percent.

#2 Back in 2007, 19.2 percent of all American families had a net worth of zero or less than zero.  By 2010, that figure had soared to 32.5 percent.

#3 According to the Federal Reserve, the median net worth of American families dropped “from $126,400 in 2007 to $77,300 in 2010“.

#4 According to the Pew Research Center, 61 percent of all Americans were “middle income” back in 1971.  Today, only 51 percent of all Americans are “middle income”.

#5 Back in 1970, middle income Americans brought home 62 percent of all income in the United States.  In 2010, middle income Americans only brought home 45 percent of all income.

#6 The unemployment rate in the United States has been above 8 percent for 42 straight months.

#7 The percentage of working age Americans with a job has been below 59 percent for 35 months in a row.

#8 In June, the number of Americans added to the food stamp rolls was nearly three times larger than the number of jobs added to the U.S. economy.

#9 Approximately 53 percent of all U.S. college graduates under the age of 25 were either unemployed or underemployed last year.

#10 Since Barack Obama entered the White House, the number of long-term unemployed Americans has risen from 2.7 million to 5.2 million.

#11 Today, the average duration of unemployment in the United States is about three times as long as it was back in the year 2000.

#12 According to a report that has just been released by the National Employment Law Project, 58 percent of the jobs that have been created since the end of the recession have been low paying jobs.

#13 According to the Center for Economic and Policy Research, only 24.6 percent of all of the jobs in the United States are “good jobs”.

#14 In 2010, the number of jobs created at new businesses in the United States was less than half of what it was back in the year 2000.

#15 The average pay for self-employed Americans fell by $3,721 between 2006 and 2010.

#16 According to U.S. Representative Betty Sutton, America has lost an average of 15 manufacturing facilities a day over the last 10 years.  During 2010 it got even worse.  That year, an average of 23 manufacturing facilities a day shut down in the United States.

#17 At this point, one out of every four American workers has a job that pays $10 an hour or less.

#18 While Barack Obama has been president the velocity of money has plunged to a post-World War II low.

#19 According to one recent survey, 85 percent of middle class Americans say that it is harder to maintain a middle class standard of living today compared with 10 years ago.

#20 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.

#21 There are now 20.2 million Americans that spend more than half of their incomes on housing.  That represents a 46 percent increase from 2001.

#22 Over the past decade, health insurance premiums have risen three times faster than wages have in the United States.

#23 Health insurance costs have risen by 23 percent since Barack Obama became president.

#24 As I wrote about yesterday, back in 1980 less than 10 percent of U.S. GDP was spent on health care but now about 18 percent of U.S. GDP goes toward health care.

#25 In a previous article, I noted that 62 percent of all middle class Americans say that they have had to reduce household spending over the past year.

#26 Family budgets in America are being stretched to the breaking point.  Today, 77 percent of all Americans live paycheck to paycheck at least part of the time.

#27 While Barack Obama has been president, U.S. home values have fallen by another 11 percent.

#28 More than three times as many new homes were sold in the United States in 2005 as will be sold in 2012.

#29 The United States was once ranked #1 in the world in GDP per capita.  Today we have slipped to #11.

#30 Since Barack Obama became president, the number of Americans living in poverty has risen by 6.4 million.

#31 The number of Americans on food stamps has grown from about 17 million in the year 2000 to 31.9 million when Barack Obama entered the White House to 46.7 million today.

#32 Approximately one-fourth of all U.S. children are enrolled in the food stamp program at this point.

#33 It is being projected that half of all American children will be on food stamps at least once before they turn 18 years of age.

#34 It is estimated that child homelessness in the United States has risen by 33 percent since 2007.

#35 Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, approximately one out of every 6 Americans is on Medicaid.

#36 As I wrote about the other day, it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

#37 It is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.

#38 The number of Americans receiving federal housing assistance increased by a whopping 42 percent between 2006 and 2010.

#39 At this point, well over 100 million Americans are enrolled in at least one welfare program run by the federal government.

#40 Amazingly, more than half of all Americans are now at least partially financially dependent on the government.

So are you better off than you used to be or worse off?

Please feel free to post a comment with your thoughts below….

95 Percent Of The Jobs Lost During The Recession Were Middle Class Jobs

Who is the biggest loser in the ongoing decline of the U.S. economy?  Is it the wealthy?  No, the stock market has been soaring lately and their incomes are actually going up.  Is it the poor?  Well, the poor are definitely hurting very badly, but when you don’t have much to begin with you don’t have much to lose.  Unfortunately, it is the middle class that has lost the most during this economic downturn.  According to Bloomberg, 95 percent of the jobs lost during the recession were middle class jobs.  That is an absolutely astounding figure.  Yes, some executives lost their jobs during the last recession as did some minimum-wage workers.  But overwhelmingly the jobs that were lost were middle income jobs.  Sadly, the limited number of jobs that have been added since the end of the last recession have mostly been low income jobs.  A higher percentage of Americans are working low income jobs than ever before, and the cost of living continues to rise at a very brisk pace.  This is causing an erosion of the middle class unlike anything we have ever seen in American history.

When I was growing up I was taught that the fact that we had the largest middle class in the history of the world was evidence that our economic system was working incredibly well.

So what does the fact that the middle class is shrinking at a very rapid pace at this point say about how well our economy is working?

Middle Class Incomes Are Going Down

During the last recession, millions of Americans lost their jobs and the percentage of working age Americans that have jobs has not bounced back in the years since the recession ended.

But most middle class Americans still have jobs.  The big problem for many middle class families is the fact that their incomes are not going up.  In fact, after you account for inflation, middle class incomes are actually way down during the Obama years as a recent Bloomberg article explained….

As a candidate in 2008, Obama blamed the reversals largely on the policies of Bush and other Republicans. He cited census figures showing that median income for working-age households — those headed by someone younger than 65 — had dropped more than $2,000 after inflation during the first seven years of Bush’s time in office.

Yet real median household income in March was down $4,300 since Obama took office in January 2009 and down $2,900 since the June 2009 start of the economic recovery, according to an analysis of census data by Sentier Research, an economic- consulting firm in Annapolis, Maryland.

So is this the “hope and change” that Obama was talking about?

But let’s not just blame Obama and Bush.  The truth is that the trend toward lower paying jobs has been going on for a very long time.

Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.

So where will it end?

Will 50 percent or 60 percent of all Americans soon be working low income jobs?

At this point, approximately one out of every four jobs in America pays $10 an hour or less.

Could your family survive on $10 an hour?

The Rising Cost Of Living

As middle class incomes go down, the cost of almost everything that middle class families buy continues to go up.

The Federal Reserve claims that it has kept inflation “low” for decades, but that is a giant lie.

When you take a look at the long-term picture, it is amazing how much prices have changed.

Back in 1950, the average price of a new car was $1,510.

Today, the average price of a new car is $30,748.

In 1967, yearly tuition at Yale was $1,950.

Today it is $38,300.

And inflation continues to take a great toll on the paychecks of middle class families.

For example, electricity bills in the U.S. have risen faster than the overall rate of inflation for five years in a row.

Also, the price of gas has risen by more than 100 percent since Barack Obama entered the White House and the average U.S. household spent a staggering $4,155 on gasoline during 2011.

The Destruction Of Middle Class Wealth

What is the number one financial asset for most middle class families?

Most middle class families don’t have a lot of stocks, bonds or other financial assets.

Instead, normally the family home is the number one financial asset for most middle class families, and in recent years the value of that asset has been absolutely decimated.

When you take inflation into account, housing prices have fallen all the way back to 1998 levels.  The following is from a recent Smart Money article….

The latest S&P / Case-Shiller numbers, reported last week, show that prices in 20 major markets declined 3.5% over the year through February. They’re now back to 2002 levels. If we subtract for inflation, they’re back to 1998 levels.

Overall, home prices in the U.S. have declined for six months in a row and are now down a total of 35 percent from the peak of the housing bubble.

Unfortunately, things don’t look like they are going to turn around any time soon.  Yale economics professor Robert Shiller recently said the following about U.S. home prices….

“I worry that we might not see a really major turnaround in our lifetimes”

But falling home prices are not the only problem we are witnessing.  We are also seeing millions of middle class families lose their homes.

According to the U.S. Census, homeownership in America is now at the lowest level it has been in 15 years.

According to Gallup, the current level of homeownership in the United States is the lowest that Gallup has ever measured.

Owning your own home is an indication that you are part of the middle class, and so the fact that the number of Americans that own a home is falling rapidly is not a good sign for the health of the middle class at all.

The Future Is Not Bright

Those that are graduating from college right now are supposed to be the future of the middle class in America.

But for most of those college graduates, the future is not so bright.  Last year, a staggering 53 percent of all U.S. college graduates under the age of 25 were either unemployed or underemployed.

Millions of young college graduates have been forced to take jobs that do not even require a college degree.  Just check out the following stats from a recent CNBC article….

In the last year, they were more likely to be employed as waiters, waitresses, bartenders and food-service helpers than as engineers, physicists, chemists and mathematicians combined (100,000 versus 90,000). There were more working in office-related jobs such as receptionist or payroll clerk than in all computer professional jobs (163,000 versus 100,000).

Aren’t those numbers crazy?

The truth is that a college education is no longer a ticket to the middle class.

What Happens To Americans That Fall Out Of The Middle Class?

As the middle class shrinks, the ranks of the “low income” and “the poor” are absolutely swelling.

Today, approximately 48 percent of all Americans are either considered to be “low income” or are living in poverty.

That is almost half the country.

Each year, millions more fall out of the middle class.  In 2010, 2.6 million more Americans fell into poverty.  That was the biggest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

As the middle class shrinks, the number of Americans dependent on the government for survival rises.  Right now, government dependence is at an all-time high and things are only going to get worse from here.

In November 2008 (when Barack Obama won the election), 30.8 million Americans were on food stamps.  Today, more than 46 million Americans are on food stamps.

Will we eventually see 50 million or 60 million Americans on food stamps?

The U.S. economy desperately needs more middle class jobs.

Unfortunately, the Republicans failed to generate them under George W. Bush and the Democrats failed to generate them under Barack Obama.

Instead, both parties continue to promote the politics of division and they both continue to push for more of the same policies that got us into this mess in the first place.

Nothing is being done to solve our problems and so the middle class in America is going to be even smaller by this time next year.

If you still have a spot in the middle class, hold on to it as tightly as you can.  It is not as secure as you might think.

24 Outrageous Facts About Taxes In The United States That Will Blow Your Mind

The U.S. tax code is a complete and utter abomination and it needs to be thrown out entirely.  Nobody in their right mind would ever read the whole thing – it is over 3 million words long.  Each year, Americans spend billions of hours and hundreds of billions of dollars trying to comply with federal tax requirements.  Sadly, it is the honest, hard working Americans in the middle class that always get hit the hardest.  The tax code is absolutely riddled with loopholes that big corporations and the ultra-wealthy use to minimize their tax burdens as much as possible.  Many poor people do not pay any income taxes at all.  The dishonest are rewarded for cheating on their taxes (if they can get away with it) and the ultra-wealthy have moved trillions of dollars to offshore tax havens where they can avoid U.S. taxation altogether.  Our system is incredibly unfair to the millions of hard working people in the middle class and upper middle class that drag themselves out of bed and go to work each day and try to do the right thing.  In addition, the current U.S. tax system is incredibly inefficient, it diverts a tremendous amount of resources away from more valuable economic activities, and it has chased thousands of businesses and trillions of dollars out of the United States.  The U.S. tax code is such a complete and utter mess at this point that it can never be “fixed”.  The only rational thing to do is to abolish it completely, and any politician that tells you otherwise is lying to you.

The following are 24 outrageous facts about taxes in the United States that will blow your mind….

1 – The U.S. tax code is now 3.8 million words long.  If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.

2 – According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours complying with federal tax requirements.  Imagine what our society would look like if all that time was spent on more economically profitable activities.

3 – 75 years ago, the instructions for Form 1040 were two pages long.  Today, they are 189 pages long.

4 – There have been 4,428 changes to the tax code over the last decade.  It is incredibly costly to change tax software, tax manuals and tax instruction booklets for all of those changes.

5 – According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.

6 – Our tax system has become so complicated that it is almost impossible to file your taxes correctly.  For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household.  All 46 of them came up with a different result.

7 – In 2009, PC World had five of the most popular tax preparation software websites prepare a tax return for a hypothetical household.  All five of them came up with a different result.

8 – The IRS spends $2.45 for every $100 that it collects in taxes.

9 – According to The Tax Foundation, the average American has to work until April 17th just to pay federal, state, and local taxes.  Back in 1900, “Tax Freedom Day” came on January 22nd.

10 – When the U.S. government first implemented a personal income tax back in 1913, the vast majority of the population paid a rate of just 1 percent, and the highest marginal tax rate was just 7 percent.

11 – Residents of New Jersey pay $1.64 in taxes for every $1.00 of federal spending that they get back.

12 – The United States is the only nation on the planet that tries to tax citizens on what they earn in foreign countries.

13 – According to Forbes, the 400 highest earning Americans pay an average federal income tax rate of just 18 percent.

14 – Warren Buffett had an effective tax rate of just 17.4 percent for 2010.

15 – The top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes.

16 – Sadly, as Bill Whittle has shown, you could take every single penny that every American earns above $250,000 and it would only fund about 38 percent of the federal budget.

17 – The United States has the highest corporate tax rate in the world (35 percent).  In Ireland, the corporate tax rate is only 12.5 percent.  This is causing thousands of corporations to move operations out of the United States and into other countries.

18 – Some tax havens are doing a booming business in setting up sham headquarters for U.S. corporations.  For example, the city of Zug, Switzerland only has a population of 26,000 people but it is the headquarters for 30,000 companies.

19 – In 1950, corporate taxes accounted for about 30 percent of all federal revenue.  In 2012, corporate taxes will account for less than 7 percent of all federal revenue.

20 – In a previous article, I discussed how many of our largest corporations make huge profits and yet pay less than nothing in taxes….

What U.S. corporations are able to get away with is absolutely amazing.

The following figures come directly out of a report by Citizens for Tax Justice.  These are combined figures for the tax years 2008, 2009 and 2010.

During those three years, all of the corporations below made a lot of money.  Yet all of them paid net taxes that were below zero for those three years combined.

How is that possible?  Well, it turns out that instead of paying in taxes to the federal government, they were actually getting money back.

So for these corporations, their rate of taxation was actually below zero.

If you have not seen these before, you are going to have a hard time believing some of these statistics…..

*Honeywell*

Profits: $4.9 billion

Taxes: -$34 million

*Fed Ex*

Profits: $3 billion

Taxes: -$23 million

*Wells Fargo*

Profits: $49.37 billion

Taxes: -$681 million

*Boeing*

Profits: $9.7 billion

Taxes: -$178 million

*Verizon*

Profits: $32.5 billion

Taxes: -$951 million

*Dupont*

Profits: $2.1 billion

Taxes -$72 million

*American Electric Power*

Profits: $5.89 billion

Taxes -$545 million

*General Electric*

Profits: $7.7 billion

Taxes: -$4.7 billion

Are you starting to get the picture?

21 – Exxon-Mobil paid $15 billion in taxes in 2009, but not a single penny went to the U.S. government.

22 – Many wealthy Americans hide enormous amounts of money outside the country in order to avoid paying taxes.  According to the IMF, a total of 18 trillion dollars is currently being hidden in offshore banks.

23 – The number of traffic accidents spikes each year right around April 15th.  The following is from a recent Bloomberg article….

Deaths from traffic accidents around April 15, traditionally the last day to file individual income taxes in the U.S., rose 6 percent on average on each of the last 30 years of tax filing days compared with a day during the week prior and a week later, according to research published in the Journal of the American Medical Association.

24 – Most of the tax debate is focused on income taxes, but the truth is that Americans pay dozens of other taxes every single year.  The following are just a few of the taxes that many Americans pay….

#1 Building Permit Taxes

#2 Capital Gains Taxes

#3 Cigarette Taxes

#4 Court Fines (indirect taxes)

#5 Dog License Taxes

#6 Federal Unemployment Taxes

#7 Fishing License Taxes

#8 Food License Taxes

#9 Gasoline Taxes

#10 Gift Taxes

#11 Hunting License Taxes

#12 Inheritance Taxes

#13 Inventory Taxes

#14 IRS Interest Charges (tax on top of tax)

#15 IRS Penalties (tax on top of tax)

#16 Liquor Taxes

#17 Luxury Taxes

#18 Marriage License Taxes

#19 Medicare Taxes

#20 Property Taxes

#21 Recreational Vehicle Taxes

#22 Toll Booth Taxes

#23 Sales Taxes

#24 Self-Employment Taxes

#25 School Taxes

#26 Septic Permit Taxes

#27 Service Charge Taxes

#28 Social Security Taxes

#29 State Unemployment Taxes (SUTA)

#30 Telephone Federal Excise Taxes

#31 Telephone Federal Universal Service Fee Taxes

#32 Telephone Minimum Usage Surcharge Taxes

#33 Telephone State And Local Taxes

#34 Tire Taxes

#35 Toll Bridge Taxes

#36 Toll Tunnel Taxes

#37 Traffic Fines (indirect taxation)

#38 Utility Taxes

#39 Vehicle License Registration Taxes

#40 Vehicle Sales Taxes

#41 Workers Compensation Taxes

When you account for all forms of taxation on the federal, state and local levels there are many Americans that pay out more than half of their incomes in taxes.

We are being taxed into oblivion, and yet most Americans do not even realize that it is happening.

It is kind of like being killed by thousands of tiny cuts.

So what do all of these taxes buy us?

They buy us a massively bloated government that wastes money on some of the craziest things imaginable.

Millions of Americans work for the federal government, and yet most of them produce very little of real economic value.  The following comes from a recent National Review article….

By 2005, the federal government employed 14.6 million people: 1.9 million civil servants, 770,000 postal workers, 1.44 million uniformed service personnel, 7.6 million contractors, and 2.9 million grantees. This amounted to a ratio of five and a half “shadow” government employees for every civil servant on the federal payroll. Since 1999, the government had grown by over 4.5 million employees.

According to that same article, when you add in state and local government workers the numbers are even more dramatic….

According to the U.S. Census Bureau, there are 3.8 million full-time and 1.5 million part-time employees on state payrolls. Local governments add a further 11 million full-time and 3.2 million part-time personnel. This means that state and local governments combined employ 19.5 million Americans.

Yes, we do need some government.  For example, without any law enforcement at all our society would descend into complete chaos, and without any military at all we would be completely open to foreign conquest.

In order to have a stable, secure society we do need some government.

However, we definitely do not need the massively bloated government that we have today.

The truth is that most government employees are a drain on the system.  Most of them just push paper around.  I used to work in Washington D.C. so I know what pushing paper around is all about.

And as I wrote about yesterday, there are millions of other Americans that enjoy a comfortable existence at the expense of the federal government without doing any work whatsoever.

Of course the biggest welfare recipients of all are the big corporations.  All forms of corporate welfare should be eliminated immediately.

When are U.S. taxpayers going to get sick and tired of paying for all of this?

Every single year, the federal government, state governments and local governments drain massive amounts of desperately needed money from hard working middle class families.

Then they take that money and spend it on incredibly foolish things.

When are American voters going to stand up and boldly declare that they have been taxed enough already and they aren’t going to take it anymore?

The current tax code is completely and utterly broken and it is beyond repair.

Unfortunately, neither the Republicans or the Democrats are proposing that we should get rid of it.

So we are just going to continue to get more of the same year after year, and it is the middle class that will feel the pain.

Rampant Unemployment = The Death Of The Middle Class – 40 Facts That Prove The Working Class Is Being Systematically Wiped Out

Without an abundance of good jobs, the middle class in the United States is going to shrivel up and die.  Right now, rampant unemployment is absolutely killing communities all over America.  Hopelessness and poverty are exploding and many are now wondering if we are actually witnessing the slow death of the middle class.  There simply are not nearly enough “good jobs” to go around anymore, and even many in the mainstream media are referring to this as a “long-term structural problem” with the economy.  The only thing that most working class Americans have to offer in the marketplace is their labor.  If nobody will hire them they do not have any other ways to provide for their families.  Well, there is a problem.  Today wealth has become incredibly centralized.  The big corporations and the big banks dominate everything.  Thanks to incredible advances in technology and thanks to the globalization of our economic system, the people with all the money don’t have to hire as many ordinary Americans anymore.  They can hire all the labor they want on the other side of the globe for a fraction of the cost.  So the rich don’t really have that much use for the working class in America anymore.  The only thing of value that the working class had to offer has now been tremendously devalued.  The wealthy don’t have to pay a lot for physical labor anymore.  Thousands of our factories and millions of our jobs have been shipped overseas and they aren’t coming back.  The big corporations are thriving while tens of millions of ordinary Americans are deeply suffering.  Almost all of the wealth being produced by our economy is going to a very centralized group of people at the very top of the food chain.  The rich are getting richer and the working class is being systematically wiped out.

So the fact that we are facing rampant unemployment that never seems to go away should not be a surprise to anyone.  Today, the “official” unemployment rate went up to 9.2 percent even though a whopping 272,000 Americans “dropped out of the labor force” in June.  The government unemployment figure that includes “discouraged workers” went up from 15.8% to 16.2%.  The mainstream media is proclaiming that this was “a horrific report” because most economists were expecting much better news.

Well, guess what?

Things are going to get a whole lot worse.

More job cuts are coming.  One recently released report found that the number of job cuts being planned by U.S. employers increased by 11.6% in June.

It is also being projected that state and local governments across the U.S. will slash nearly half a million more jobs by the end of next year.

Needless to say, things don’t look good.

Most people that still have jobs are desperately trying to hold on to them.

Employers know that most workers are easily replaceable these days, so wages are not moving up even though the cost of living is.

We are right in the middle of the worst employment downturn since World War 2.  Jay-Z recently summed up the situation this way….

“Numbers don’t lie. Unemployment is pretty high.”

Jay-Z certainly has a way with words, eh?

If something is not done about the rampant unemployment in this nation, the death of the middle class will accelerate.

Most Americans just assume that the United States will always have a large middle class, but there is no guarantee that is going to happen.  In fact, there is a whole lot of evidence that the middle class in America is rapidly shrinking.

Take a few moments to read over the facts compiled below.  Taken together, they provide compelling evidence that the working class is being systematically wiped out….

#1 Right now, the U.S. government says that 14.1 million Americans are unemployed.

#2 There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million people to the population since then.

#3 The number of Americans that are “not in the labor force” is at an all-time high.

#4 The United States has never had an employment downturn this deep and this prolonged since World War 2 ended.

#5 There are officially 6.3 million Americans that have been unemployed for more than 6 months.  That number has risen by more than 3.5 million in just the past two years.

#6 It now takes the average unemployed worker in America about 40 weeks to find a new job.  Just check out this chart….

#7 There are now about 7.25 million fewer jobs in America than when the recession began back in 2007.

#8 Back in 2000, the employment to population ratio was over 64 percent.  Today, it is sitting at just 58.2%.

#9 Only 66.8% of American men had a job last year.  That was the lowest level that has ever been recorded in all of U.S. history.

#10 During this economic downturn, employee compensation in the United States has been the lowest that it has been relative to gross domestic product in over 50 years.

#11 The number of “low income jobs” in the U.S. has risen steadily over the past 30 years and they now account for 41 percent of all jobs in the United States.

#12 Half of all American workers now earn $505 or less per week.

#13 According to a report released in February from the National Employment Law Project, higher wage industries are accounting for 40 percent of the job losses in America but only 14 percent of the job growth.  Lower wage industries are accounting for just 23 percent of the job losses but 49 percent of the job growth.

#14 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#15 Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.

#16 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.

#17 Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe?  Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts of $110 billion.

#18 In 2010, South Korea exported 12 times as many automobiles, trucks and parts to us as we exported to them.

#19 The United States now spends more than 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.

#20 Since China entered the WTO in 2001, the U.S. trade deficit with China has grown by an average of 18% per year.

#21 The U.S. trade deficit with China in 2010 was 27 times larger than it was back in 1990.

#22 The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.

#23 In 2002, the United States had a trade deficit in “advanced technology products” of $16 billion with the rest of the world.  In 2010, that number skyrocketed to $82 billion.

#24 Manufacturing employment in the U.S. computer industry was actually lower in 2010 than it was in 1975.

#25 Since 2001, over 42,000 manufacturing facilities in the United States have been closed.

#26 There were more manufacturing jobs in the United States in 1950 than there are today.

#27 Since the year 2000, we have lost approximately 10% of our middle class jobs.  In the year 2000 there were about 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.  Meanwhile, our population has gotten significantly larger.

#28 When you adjust wages for inflation, middle class workers in the United States make less money today than they did back in 1971.

#29 One recent survey found that 9 out of 10 U.S. workers do not expect their wages to keep up with soaring food prices and soaring gas prices over the next 12 months.

#30 Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.

#31 One out of every six elderly Americans now lives below the federal poverty line.

#32 According to one recent study, approximately 21 percent of all children in the United States were living below the poverty line in 2010.

#33 Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, one out of every 6 Americans is on Medicaid.

#34 As 2007 began, there were 26 million Americans on food stamps.  Today, there are more than 44 million Americans on food stamps, which is an all-time record.

#35 Today, one out of every four American children is on food stamps.

#36 59 percent of all Americans now receive money from the federal government in one form or another.

#37 The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006.

#38 In the United States today, the richest one percent of all Americans have a greater net worth than the bottom 90 percent combined.

#39 According to Moody’s Analytics, the wealthiest 5% of all households in the United States now account for approximately 37% of all consumer spending.

#40 The poorest 50% of all Americans collectively own just 2.5% of all the wealth in the United States.

The cold, hard reality of the matter is that the United States is experiencing a long-term economic decline.

Every single day, more American families fall out of the middle class and into poverty.  There are millions of American families out there tonight that are just barely hanging on by their fingernails.

More Americans than ever are constantly borrowing more money just to stay afloat.  Even as rampant unemployment plagues this nation and even as wages remain stagnant, middle class Americans are increasing their use of credit.

A CNBC article noted the increase in consumer borrowing that we have seen recently….

The Federal Reserve says consumer borrowing rose $5.1 billion following a revised gain of $5.7 billion in April. Borrowing in the category that covers credit cards increased, as did borrowing in the category for auto and student loans.

It is very hard to live “the American Dream” without going into huge amounts of debt these days.

But for an increasing number of Americans, “the American Dream” is just a distant memory.

Tonight, there are large numbers of people living in the tunnels under the city of Las Vegas.  As the wealthy live the high life in the casinos and hotels above them, an increasing number of desperate “tunnel people” are attempting to carve out an existence in the 200 mile long labyrinth of tunnels that stretches beneath Vegas.  It is a nightmarish environment, but it is all those people have left.

Don’t look down on them, because you never know who might be next.

If you lost your current job, how long would you be able to survive?

Unfortunately, as bad as things are now, the reality is that this is just the beginning.

You ain’t seen nothin’ yet.

Do what you can to make sure that you and your family are not totally wiped out by the next wave of the economic collapse.

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