If dad is contributing 15%, then his share is $20,339.
If mom is contributing 40%, then his share is $4,082.
Combined household contribution is then $24,421.
And the logic behind using the household budget example doesn’t make any sense…
Since when does a family budget not have income = expenses?
The reason the math fails is because the Tax rates are the average rates for the top 1% vs remaining 99% while the income is that of the top 20% vs remaining 80%. Obviously the intent is to show that the top 1% doesn’t pay their fair share. I’d agree with that, but the problem is that we as a nation seem to believe that investment is some sort of noble use of wealth that should be rewarded with significantly lower tax rates on the profits it makes. In my mind, investments should be treated the same as gambling earnings. But the rich have the money (duh) and with that the power. And there are too many non-rich who are all too willing to fight to protect the wealth of the affluent.
Brian,
I understand the intent of the numbers used, however, the example using a family budget to illustrate the point is an absolute failure.
I would tend to agree. It’s disingenuous at best. However, I would also disagree with your statement:
“Since when does a family budget not have income = expenses?”
Many families have expenses that exceed their incomes. That’s how household debt goes up. We all know it happens far more than it should. Of course when incomes fail to rise to help offset that increased debt at some point consumption has to decline. When that happens to enough households at the same time, we get a recession.
Guys, you’re missing the irony here. This is a parody of the traditional neoliberal attack on the federal deficit as if it were a household budget. This simply turns that meme on it’s head and turns the household budget into the federal budget. I like it (even if the numbers don’t quite add up). It’s intentionally wrong in the same way the neoliberal example is unintentionally wrong.
My $.02…
One often hears that govt should be run like a business. I disagree. Business should be run like the govt. When govt puts temporary tax cuts inplace ending the temporary cuts is a tax hike that can’t happen. All businesses should be required to leave their Black Friday deals as permanent new prices.
Too bad the math is wrong…
If dad is contributing 15%, then his share is $20,339.
If mom is contributing 40%, then his share is $4,082.
Combined household contribution is then $24,421.
And the logic behind using the household budget example doesn’t make any sense…
Since when does a family budget not have income = expenses?
The reason the math fails is because the Tax rates are the average rates for the top 1% vs remaining 99% while the income is that of the top 20% vs remaining 80%. Obviously the intent is to show that the top 1% doesn’t pay their fair share. I’d agree with that, but the problem is that we as a nation seem to believe that investment is some sort of noble use of wealth that should be rewarded with significantly lower tax rates on the profits it makes. In my mind, investments should be treated the same as gambling earnings. But the rich have the money (duh) and with that the power. And there are too many non-rich who are all too willing to fight to protect the wealth of the affluent.
Brian,
I understand the intent of the numbers used, however, the example using a family budget to illustrate the point is an absolute failure.
I would tend to agree. It’s disingenuous at best. However, I would also disagree with your statement:
“Since when does a family budget not have income = expenses?”
Many families have expenses that exceed their incomes. That’s how household debt goes up. We all know it happens far more than it should. Of course when incomes fail to rise to help offset that increased debt at some point consumption has to decline. When that happens to enough households at the same time, we get a recession.
Guys, you’re missing the irony here. This is a parody of the traditional neoliberal attack on the federal deficit as if it were a household budget. This simply turns that meme on it’s head and turns the household budget into the federal budget. I like it (even if the numbers don’t quite add up). It’s intentionally wrong in the same way the neoliberal example is unintentionally wrong.
My $.02…
One often hears that govt should be run like a business. I disagree. Business should be run like the govt. When govt puts temporary tax cuts inplace ending the temporary cuts is a tax hike that can’t happen. All businesses should be required to leave their Black Friday deals as permanent new prices.