Wages have once again began to outpace inflation month over month and where those gains have been concentrated has been the lower and middle classes. Homeownership in particular has held steady month after month at about 66% under Biden, having grown 1.5% since he came into office. Inflation doesn't erode the value of assets like a home, unless you're looking at it as a short-term investment. For those who own their home 10-30 years, those once in a lifetime interest rates that Trump's administration shepherded in (alongside inflation) by cutting borrowing rates, won't be going away. The inflation is transitory year over year, whereas the long term asset of a home is unrealized unless and until someone refinances or sells their home. Auto sales.. lawl, the 'supply issue' which a lot of dealerships used to mark up their inventory, particularly used inventory, created the biggest challenge for discretionary income for households. Dealers priced themselves out of the market and the increase in borrowing costs has assured new vehicle purchases will remain stagnant, where BEA reports show used vehicle sales and margins have again begun to perk up.Originally Posted by Suppressed Poet
https://apps.bea.gov/iTable/?reqid=1...ies=underlying
The New Deal implemented taxes commiserate with wealth in the United States and those have been steadily eroded, while the tax burden of the middle class has increased. Reagan was the biggest culprit there, followed by Trump, and to a lesser degree Bush Sr. Look to the concentration of wealth in the United States in the 1% and 0.5% percentile which has grown /significantly/ whereas their effective tax rate has plummeted. The trickle down theory under Reagan failed, and failed spectacularly to bolster anything but the formation of an egregious concentration of wealth, which Trump only exacerbated.
Let's use the Tax Foundation data as an example. Tax year 2013 (left) data versus tax year 2020 (right). The share of AGI in these tax groups representing the bottom 90% of wage earners has only decreased in that seven year period.
Group Share of AGI Share of Taxes Share of AGI Share of Taxes Top 1 19.04% 37.80% 22.2% 42.3% 3.16% Top 1-5% 15.38% 20.75% 15.90% 20.40% 0.52% Top 5-10% 11.45% 11.25% 11.40% 11.00% -0.05% Top 25% 22.23% 16.47% 21.2% 14.8% -1.03% Top 50% 20.41% 10.95% 19.10% 9.20% -1.31% Bot 50% 11.49% 2.78% 10.2% 2.3% -1.47%
Now let's compare the 2015 tax year data (left) and the tax 2020 tax year data (right) from the Tax Foundation. The shorter range shows how everyone but the top 10% lost economic strength as displayed in the share of adjusted gross income as individual filers per the IRS. So regardless of your claims about weighty for Trump's tax cuts, only those at the income split point making $152,321 for 10% bracket or more saw their share of the nations adjusted gross income grow.
Group Share of AGI Share of Taxes Share of AGI Share of Taxes Top 1 20.65% 39.04% 22.2% 42.3% 1.55% Top 1-5% 15.42% 20.54% 15.90% 20.40% 0.48% Top 5-10% 11.29% 11.01% 11.40% 11.00% 0.11% Top 25% 21.63% 16.03% 21.2% 14.8% -0.43% Top 50% 19.73% 10.55% 19.10% 9.20% -0.63% Bot 50% 11.28% 2.83% 10.2% 2.3% -1.26%
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