Business

Shock Report: ‘The Top 1 Percent Suffered the Most in the Recession’

We all know the essentials of the Leftist narrative regarding the rich. Insofar as Occupy Wall Street has become a glorified communications shop for that narrative, the claim advanced by those on the Left is that the rich are getting a disproportionate amount out of America’s political and economic system while contributing almost nothing back – that is, except insofar as they spend money to buy elections and kill democracy. Moreover, they claim, the rich have felt practically none of the brunt of this recession, while the little people – the so-called 99 percent – have borne almost all of it.

A pity that, according to a new report from the Congressional Budget Office (CBO), this entire narrative reduces to an alternate reality. Let’s go down the list of talking points as a sort of Q&A, with the help of this fantastic explanation of the CBO report from the Washington Times, and see how much of it survives.

Question: Do the rich pay their fair share of taxes?

Answer: Yes, and then some. From the Times report:

The bottom 20 percent of American earners paid just three-tenths of a percent of the total federal tax burden, while the richest 20 percent paid 67.9 percent of taxes.

Question: Did the top 1 percent of income earners benefit disproportionately over the course of the recession?

Answer: Absolutely not. They took in only 11.5 percent of income nationwide, while paying 22.3 percent of taxes -nearly double the percentage they earned – in 2009.

Question: Has the top 1 percent of income earners been hurt by the recession?

Answer: Not only have they been hurt, but this recession hurt them the most. Consider these two data points (emphasis added):

The big losers over the past few years were the rest of the well-off — those in the 60th percent to 99th percent of earnings — who saw their tax burdens go up.[...]

In terms of actual earnings, the top 1 percent suffered the most in the recession, with their average earnings dropping from $1.9 million to $1.2 million. The lowest 20 percent saw their incomes drop from $23,900 to $23,500 during that time.

Question: So what is the Left talking about with respect to the rich not giving anything back?

Answer: We’re not sure, but if we had to guess, we‘d say it’s something to do with the fact that the richest 1 percent’s share of the tax burden dropped by a full four percent. However, this still puts them paying more than they take out by a sizable margin. Really, we imagine bad data combined with economic frustration is motivating the people who earnestly believe what the Left puts out, but it could just be anti-wealth prejudice and Marxist pap at work. However, for the sake of a healthy debate, we prefer to assume our opponents have at least a basically rational reason for believing what they believe.

Comments (42)

  • TrueSoundsOfLiberty
    Posted on July 11, 2012 at 10:41am

    One this this article fails to point out is that top 10% own over 70% of the wealth, where as the bottom 40% have less than 1%. So explain to me how the ultra-wealthy suffer. Are they making $1 million a day instead of $1.2? That sounds like a horrible life to live, I can see why they would be upset!

    Report Post » TrueSoundsOfLiberty  
    • drphil69
      Posted on July 11, 2012 at 6:48pm

      They EARNED it. They CREATED it. Leftists just want to STEAL it from them. Destroy the wealth creators, and you will starve.

      Report Post »  
    • dadbarnes
      Posted on July 11, 2012 at 8:01pm

      To:truesoundof liberty: Contrary to the mantra of the left wealth is not static. It is not a commodity you own like a car. It is what you earn on any given year. You pay no federal taxes on your car every year so the substitution of ownership applied to the earnings is a typical and fanciful lie….and attempt at misdirection to the easily swayed, and if you seriously think that the amount you earn is in any way related to they happiness you can have in life, you may need more serious help than an education in economics.

      Report Post »  
  • Individualism
    Posted on July 11, 2012 at 9:59am

    they still pay lower rates and they have so much money to where they could pay all the taxes and still live it up like King Al Saud does for his people in Saudi Arabia.

    Report Post » Individualism  
  • lukerw
    Posted on July 11, 2012 at 4:12am

    TO DESTROY CAPITALISM: Just prevent the Capitalists from gathering Capital to Invest… and the System will Spirial Downward.,, as opposed to Upward… for Capitalism has No Neutral Mode!

    Report Post » lukerw  
  • Hawaii_Conservative
    Posted on July 11, 2012 at 3:01am

    Considering Romney only paid 11% of his income to the feds. I would say they have more money to loss but the average working middle class person pays more percentage in taxes and they’ve had to pay more of their percentage earnings to the greater increase in living expenses during the last 4-6 years. Remember the love of money is the root of all evilness, so just spend it. My best investments have been in great people who are thirsty to learn by working through their career path.

    Report Post » Hawaii_Conservative  
    • 9111315
      Posted on July 11, 2012 at 8:52am

      Can you define percentage.

      Report Post »  
    • adastra2005
      Posted on July 11, 2012 at 1:32pm

      Interesting. If the love of money is the root of evil, what is the love of other people’s money. What is the taking of one person’s money who earned it just so the government can take their 65% cut and give the other 35% to those that didn’t earn it?

      Report Post »  
    • socialism.rocks
      Posted on July 11, 2012 at 2:50pm

      @adastra2005 you are a utter thatcher head its the peoples money not others people money capitalism is a tool of allocation of the public resources go back to basic economics or ask… even a conservative economist where do resources come from the people…..“capital is just the earnings from the peoples resources” and real free enterprise is the whole people deciding the value of wages goods and services

      i just love thatcher heads and reaganites so full of their limited intellectual capacity

      Report Post » socialism.rocks  
  • BeeDee
    Posted on July 11, 2012 at 12:15am

    Interesting that the people who are the most vehemently opposed to the the wealthy are also the ones who buy more lottery tickets. The poor want to be rich. Instead of buying lottery tickets, why don’t the poor educate themselves, work for themselves, and achieve for themselves. Not saying everyone will prosper, but why wait for their fairy-godfather to sprinkle some of that magic dust their way? Liberals don’t really care, conservatives give more in charity.

    Report Post »  
    • mrsuperpat
      Posted on July 11, 2012 at 12:35am

      There is truth to this but to think for a moment that I should pity the criminal top 1 percent and their ill gotten gains is ludicrous. The top 1 percent is the current aristocracy that are involved in monopolies, politics, criminal investment banking, and corrupt corporations that try daily to feed me bull$%^# and steal my liberty. Most of them belong to all the same conspiring county clubs that promote UN one world government garbage.

      Report Post »  
    • Stoic one
      Posted on July 11, 2012 at 2:14am

      The ones you describe as criminal are the mega-wealthy;the top 1% of your so called one percent. In other-wards the 0.01%, not the 1%. This group include corporations like GE, remember in the eyes of the IRS corporations are people too.
      A little over a year ago I had my driveway replaced- by a one-percenter; his family made the investments in equipment that made it possible for ANYONE to give me an asphalt driveway.
      It is foolish, in my opinion, to classify an economic group as ‘criminals’. There are thieves in any group. Theft is the result of greed or desperation, neither of which come from a healthy mindset.

      We all pay excessive taxes, most of which go unnoticed.

      Report Post » Stoic one  
    • themachinist239
      Posted on July 11, 2012 at 11:16am

      Stoic One, you’re right that there are thieves in all classes of people. Arguing what kind of criminal is worse than the other isn’t my favorite thing to do, but the way our justice system perverts the dynamic of crime vs punishment, one is entitled to point out the hypocrisy. When a banker or any member of the financial elite steal enormous amounts of money, they get off with substantially less punishment than a petty thief often because of their status in society as a driver of business, an supplier of capital; we should be thankful for the existence of such people, they say. We’ve turned the successful laundering of money into a societal virtue which gets reinforced every time the justice dept. folds and ‘punishes’ these offenders with fines, settlements with the SEC, stern lectures before a congressional committee, etc…

      When a thief steals a TV, they should be punished. Their punishment should fit the crime. When a banker whom otherwise conducts himself professionally decides suddenly to seize an opportunity to rip off thousands of people of their money, the damage is often exponentially greater than a stolen television, yet we as a society put the banker in a separate class who are spared the burden of admitting their misdeeds or even acknowledging what they did was wrong.

      Report Post »  
  • 19random35
    Posted on July 11, 2012 at 12:09am

    Really hard to believe this article was written in earnest. A $1.2 million income is considered suffering? Holt should write comedy for The Onion.

    Report Post »  
  • tommyg524
    Posted on July 10, 2012 at 11:34pm

    duh…hea you is sah:
    http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/#b

    Report Post »  
  • Ron_WA
    Posted on July 10, 2012 at 11:07pm

    This is somewhat contrary to my libertarian & capitalist streaks but I actually believe in the progressive income tax …

    those who are more fortunate can give more & probably should give more in a philanthropic way … but I’m think the current progressive federal tax system is more or less fair. This “fair share” stuff is garbage!

    Quit whining, crying foul & define whatr you think “fair share” is rather than just trying to evoke irrational class-warfare rhetoric – Mr. &/or Ms. Limousine-liberal – I think we’re already at a progressive income tax fair share place;

    if you leftists can’t rationally explain what you consider fair & why then your leftist argument reeks of divisiveness & class warfare.

    If your Judeo-Christian or limousine-liberal white-guilt makes you think you should pay more then do so – you can always write a check to the US Treasury – I have in the past – but it should not be compulsory.

    I still think the flat-tax would resolve much of this …

    Report Post » Ron_WA  
    • Sicboy
      Posted on July 10, 2012 at 11:34pm

      Suffering the most and loosing the most are two different things. The 1% may have lost a lot of money. That’s a bad thing. Especially when you invest in crony capitalism. I’m not saying that they ALL did. But if you did you have know one to blame except? I remember reading a story about two weeks ago about how the 1% had their “own” economy. Whatever. You reap what you sow. Go on freaks say what you will. I am a Christian Conservative, And a “free market” Capitalist who can’t stand RP. To bad we haven’t had a “free market” in years. God luck in the upcoming 18 months.

      Report Post » Sicboy  
    • BeeDee
      Posted on July 11, 2012 at 12:06am

      It is easy to define what “fair share” is, its always more than what they are paying now. Noone should have more than anyone else. So instead of raisng the standard for the poor, lower the level of the rich by taking what they have, and keeping it. Total BS, but that is communism.

      Report Post »  
  • ALL4FREEDOM
    Posted on July 10, 2012 at 10:57pm

    Remember one thing: Democrats took control of Congress in 2006 and the economy tanked well after that. Once Obummer took office, it never saw daylight again. Can’t blame it ALL on Bush.

    Report Post »  
  • Tankertony
    Posted on July 10, 2012 at 10:53pm

    I love rich Americans, those who made their fortunes legally. Those who have faith in God.
    Rich Americans are the kindest, most generous, most giving, most creative people in the history of the World.
    They need to be nurtured, protected, and looked up to.
    Pray for them.

    Report Post » Tankertony  
  • cmonnow
    Posted on July 10, 2012 at 10:43pm

    my family lost a good deal of money when the market’s tanked as Bush was on his way out. not sure if we are 1%, but we are definitely in the top 10%. my fiancee works in mental health with very low income individuals. I would never dare to claim to “suffer” as those living in poverty. get over it Holt.

    Report Post »  
    • Weiners Wiener
      Posted on July 10, 2012 at 10:57pm

      ^^^^^ Liberal plant alert

      Report Post »  
    • The-Monk
      Posted on July 11, 2012 at 1:11am

      @cmonnow

      Congress was controlled by progressives Dem‘s for Bush’s last 2 years…. but you knew that already.

      Report Post » The-Monk  
  • bizznizz1
    Posted on July 10, 2012 at 10:32pm

    Protect your family, Be ready for anything.you can’t eat your gun or your worthless cash.Proverbs 22:3 (NLT)
    A prudent person foresees danger and takes precautions.
    The simpleton goes blindly on and suffers the consequences. http://www.fullmoonsurvival.com/ God Bless.

    Report Post » bizznizz1  
    • docgreen
      Posted on July 10, 2012 at 10:48pm

      Didn’t I say that if you keep taxing the Rich, eventually those people will either move their money overseas or just end up broke! The Crash is coming and the Bible tells us in one hour everything comes to nothing! Thats when the Antichrist will step forward with a Global Plan, kind of like what obama’s doing right now! What more could he ask for? The collapse of the Dollar!

      Report Post »  
  • Exrepublisheep
    Posted on July 10, 2012 at 10:30pm

    Straight up lie.

    Exrepublisheep  
  • justangry
    Posted on July 10, 2012 at 10:28pm

    I’m not a class warfare person, but give me a break. Suffer? You mean they went hungry, couldn’t afford to see a doctor, get their meds, got kicked out of their houses, lived on the streets, etc.? Disporportionally paid a higher share of taxes, absolutely, but to say they suffered in an economic system that is stealing the wealth of the lower and middle classes through inflation is a stretch.

    Report Post » justangry  
    • cmonnow
      Posted on July 10, 2012 at 10:41pm

      exactly…. gimme a break Holt. nobody is buying this load of bs.

      Report Post »  
  • SimpleTruths
    Posted on July 10, 2012 at 10:25pm

    Historians of the future will be studying how exactly how the wool was pulled over the eyes of people who actually believed that we should feel sorry for the richest 1% of Americans.

    Report Post » SimpleTruths  
  • The-Monk
    Posted on July 10, 2012 at 10:19pm

    That’s not what Robert Kiyosaki, author of “Rich Dad Poor Dad” said when he appeared on GBTV.
    I seem to remember him saying he had his best 3 years ever.

    http://www.bing.com/videos/search?q=gleen+beck+Robert+Kiyosaki+&mid=5958892C008617F66D6B5958892C008617F66D6B&view=detail&FORM=VIRE1

    Report Post » The-Monk  
    • Exrepublisheep
      Posted on July 10, 2012 at 10:26pm

      Uh oh. Didn’t you get the memo?

      Exrepublisheep  
  • pigletrios
    Posted on July 10, 2012 at 10:14pm

    People have such a hard time for some reason grasping that we cannot bring the country down to the lowest common denominator and expect to prosper…………we have way too many people who never finished school and thanks to our nanny state, dont have the willpower, the brains, guts or perseverance to take care of themselves and their families…..and the shame of it all is that conservatives in this country have taken so long to “come out” if I may and get loud and vocal………..what is going on this this country today is total nonsense and is the prelude to disaster unless conservatives continue to stand up and yell “I am mad as hell and NOT going to take this any more”. Fight for your lives people – at no time in our history is it more important than right here….right now.

    Report Post »  
    • spirited
      Posted on July 10, 2012 at 11:07pm

      You are 100% correct;

      >and then some.

      Report Post » spirited  
    • mbriz
      Posted on July 10, 2012 at 11:21pm

      You haven’t a clue. You are owned puppet.

      Report Post » mbriz  
    • pamela kay
      Posted on July 11, 2012 at 12:01am

      PIGLETTRIOS, I agree. I don;t have a problem nor am I jealous of people with money. My only problem with it is when they try to push their beliefs on Americans and make false claims that they they will make sacrifices that we simply know are untrue. I am mainly speaking about the celebrities that use their names to promote agendas. What would happen if the rich no longer paid those taxes? They are paying 70% and if they should leave where does that leave us? I do not feel that they owe me anything. I do not feel that they should carry the rest of us any more than they already do. How is that fair? If you agree, than you believe in sharing the wealth. Why should they be expected to when you don;t want to yourself?

      Report Post » pamela kay  
  • Too_Far_Gone
    Posted on July 10, 2012 at 10:10pm

    Cry me a river !!

    Report Post » Too_Far_Gone  
    • Skrewedretiree
      Posted on July 10, 2012 at 10:18pm

      Yeah, I hear ya! So, how about empoying me? Hmmm? Come one, man! You think the so called “rich ” are ripping us all off and ned to give up their wealth, so GIVE ME A JOB!

      No? Well, no surprise…..

      Never got a job from a poor man, and never kept a job in a company taxed out of business.

      Report Post » Skrewedretiree  
    • spirited
      Posted on July 10, 2012 at 10:23pm

      Obama recently said it’s “98%”, therefore, the 1 percent must now be the 2%.

      As for the river of tears,
      > good fortune should not be demeaned…. if come by honestly.

      Report Post » spirited  
    • Too_Far_Gone
      Posted on July 10, 2012 at 10:29pm

      These AH’s had this in the works for a long time, easy to see now, what ****** me off is it was right under our nose’s .. Will never happen again.

      Report Post » Too_Far_Gone  

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love