this is true and I have read it as well. frankly i was surprised to read it since income and welath disparity seems worse in communist China than other non-communist countries. But if you really think about it, itr is easy to see how it happened.
The world goes to China to manufacture things because it is so cheap to do so. And it is cheap because the labor is paid much less, and probably to survival level, not enough to accumulate. However they do have the culture to save a lot more than Americans. But how much they can save is limited by low wages.
The party bosses, their friends and relatives however get all the privileged positions, such as the top jobs, licenses etc. They get most if not all of the export revenue.
That explains the 1% owning all that wealth.
Now the funny thing is, these people bring all that cash and invest in the good old America! Like the Japanese did a few decades ago, the Chinese are now copying them and buying up properties all over the two coasts. That is the only way they can protect their assets!
It is a really risky situation for wealthy Americans as well because if the Chinese govt makes its citizen sell their asset in the US, suddenly the house prices in USA will come down ....But then that will make it more affordable for other Americans or investors from other countries!
about 1% of Americans own 99% of US' wealth. Where's the inquiry into this?
so China has admitted its communistic socialism has failed and ended up yielding capitalistic results?
That's what i meant, my friend. That's why i said the difference of $1 could mean paying 5% more in taxes.
Its really the case of fearing in "making too much" because of being taxed more. Its a case of being punished for being successful , lol. The irony isn't it? A state where one is being punished for having means, and rewarding the less unfortunate. Leftist liberals would claim its fair, i say its shear
highway robbery.
I agree it is unfair.
But technically, by making $1 you don't pay 5% more; if you cross the tier/slab tthreshold, the higher rate is applied only on the income that is over that threshold.
That said, I can also show some cases where what you say CAN happen.For example at certain thresholds, the deductions start getting reduced, credits start getting eliminated and rebates get vaporized. In those situations, I think your effective tax can jump quite a bit ...but it gets too complicated to test whether it can impact TOTAL tax by 5%.
indeed it is highway robbery.