People surround themselves with people who earn similar incomes, and it is now fueling a rise in residential segregation. One recent study suggests the income gap might be greater today than even during colonial times – even when you account for slavery.
Residential segregation also makes it easier when it comes to gerrymandering, or redrawing district boundaries. Taylor says that increasingly the people who draw those lines do so in order to create “safe” districts, whether for Republicans or Democrats. (NPR News, 9/22/12)
1. Forty-seven percent of Americans don’t pay taxes.
The most pernicious misconception about people who don’t pay federal income taxes is that they don’t pay any taxes. That oft-heard claim ignores all the other taxes Americans encounter in their daily lives. Almost two-thirds of the 47 percent work, for example, and their payroll taxes help finance Social Security and Medicare. Accounting for this, the share of households paying no net federal taxes falls to 28 percent.
And those aren’t the only other taxes they bear. According to economic research, the corporate income tax discourages domestic investment; that depresses wages, so workers are effectively paying some of the corporate tax. More directly, many households pay federal taxes on gasoline, beer and cigarettes. And then there are state and local sales, property and income taxes — all of which are often less progressive than the federal income tax. Putting all these together, a family of three with an income of $30,000 would owe no federal income tax (in fact, they would get money back). But they could easily pay more than $4,500, or 15 percent of their income, in taxes.