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Jim Saxton, through is position on the House Joint Economic Committee, sent out a press release on Sept 12 with the screaming headline: INCOME INEQUALITY STATISTICALLY UNCHANGED SINCE 2001 and this picture into the world according to Saxton...

"Despite all the discussion about income inequality, the fact is that it hasn't changed in recent years, according to the Census Bureau measure," ranking Joint Economic Committee member Congressman Jim Saxton said today. "Congress should consider this fact before acting on the assumption that income inequality is surging.

Saxton conveniently used the Census Bureau information to justify this statement, but according to an article from the Wall Street Journal, thats not the best judge and in fact the Income-Inequality gap has risen and continues to rise...

The wealthiest 1% of Americans earned 21.2% of all income in 2005, according to new data from the Internal Revenue Service. That is up sharply from 19% in 2004, and surpasses the previous high of 20.8% set in 2000, at the peak of the previous bull market in stocks.

The bottom 50% earned 12.8% of all income, down from 13.4% in 2004 and a bit less than their 13% share in 2000.

The IRS data, based on a large sample of tax returns, are for "adjusted gross income," which is income after some deductions, such as for alimony and contributions to individual retirement accounts. While dated, many scholars prefer it to timelier data from other agencies because it provides details of the very richest -- for example, the top 0.1% and the top 1%, not just the top 10% -- and includes capital gains, an important, though volatile, source of income for the affluent.

The IRS data go back only to 1986, but academic research suggests the rich last had this high a share of total income in the 1920s.

The end of the article has this sobering stat...

The data highlight the political challenge facing Mr. Bush and the Republican contenders for president. They have sought to play up the strength of the economy since 2003 and low unemployment, and the role of Mr. Bush's tax cuts in both. But many Americans think the economy is in or near a recession. The IRS data show that the median tax filer's income -- half earn less than the median, half earn more -- fell 2% between 2000 and 2005 when adjusted for inflation, to $30,881. At the same time, the income level for the tax filer just inside the top 1% grew 3%, to $364,657.

Preliminary math shows the top at +3, the median at -2.  Thats a change of 5 with the median falling further behind the top. That seems to be a widening gap.  This is just another example of how Jim Saxton is out of touch.  In his world,  down is up and left is really right.  It is so past time for a change.

Originally posted to SaxtonWatch on Sat Oct 20, 2007 at 11:00 AM PDT.

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Comment Preferences

  •  You still don't get it do you? [snark]... (7+ / 0-)

    "article" in the WSJ? Wait for the editorial to tell us how to think! See, if the WSJ were a human, its corpus coloseum would have been severed thus explaining the extreme and persistant disconnect between what is and what one wishes...nice diary...Thanks! Let's try and rid the House of Rep Saxton.

  •  Lies, Damn, Lies, (4+ / 0-)

    and the statistics Jim Saxton chooses.

    Without them, where would he (and the rest of the Republican Deniers) be?

    They burn our children in their wars and grow rich beyond the dreams of avarice.

    by Limelite on Sat Oct 20, 2007 at 11:56:15 AM PDT

  •  Where are the neoliberal economists (2+ / 0-)
    Recommended by:
    sxwarren, 4thepeople

    who have told us for years that workers receive the net marginal product of labor. How is it that over 20% of the increase in labor productivity goes to 1% of the population. And nothing to most working people. This shows the vacuity and meaninglessness of neoclassical economics.

  •  Does this Jim Saxton have brain? (1+ / 0-)
    Recommended by:

    I literally pity the intellectuality of these guys like Saxton. They never go beyond their exotic townhomes on 5th Avenue or beyond their beach-front estates in South-Hamptons and they think that they have right kind of knowledge to comment about US economy. Give me a break. On Bill Maher's show, CNBC's reporter Maria Bartiromo, was also saying the same thing. I have few words for her :

    I watched your comments about US Economy on Bill Maher's show and I must say that I pity on your stupidity and idiotness. You said that US Economy is doing good and global economy is doing great. The fact is US economy is not doing good. The fact is and global economy is doing great because US economy is not doing good. Maria, how US economy is doing, this kind of information you don't get by "sharing a bed with a CEO of an US multinational". This kind of information you get when you actually go to the "rust-belt" of US, Michigan, Ohio, Illinois, Indiana. If you get some time from your busy schedule of "breakfast with CEO followed by lunch with CEO followed by dinner with CEO and then share-a-bed with CEO", please go to these places I mentioned. You will find that there are towns-after-towns and villages-after-villages who have only businesses left in them is a pizza place. Let me tell you, global economy is doing great, because of idiotic free-trade, free-market policy of US administration and US congress. Hard-working middle-class and lower-class American workers' hard-earned dollar is being continuously drained to cheap-labor, no-quality foreign nations and that's why global economy is doing great. China is deliberately keeping their currency undervalued so that they can dump dangerous/defective goods into US. At the same time, they are also effectively blocking access to their domestic market to US exporters. That's why Chinese economy is doing great. Indian technology/consulting/outsourcing companies have long abused H1B and L1 visa programs. US businesses are continuously outsourcing their high-skill, high-pay technology/service jobs to cheap-labor, poor-quality India and that's why Indian economy is doing great. Hard-working middle-class and lower-class American workers' jobs are being outsourced to cheap-labor, no-quality foreign nations. If you knew this then you wouldn't have said those disgusting comments. Next time when you think that you have enough right kind of information to comment about US economy, I would suggest you better take an advice from an expert, it's much easier and better than getting the information from sharing a bed with a CEO.

  •  What planet, what country, what state ? (0+ / 0-)

    I live in NJ and knew the answer. I would put NJ-3 in the title.

    Photo Sharing and Video Hosting at Photobucket

    income disparity can lead to instability, politically, economically, culturally, see the Russian revolution and the French Revolution.

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Sat Oct 20, 2007 at 01:10:06 PM PDT

    •  We've Never Tried Wide Income Disparity Inside (1+ / 0-)
      Recommended by:

      a realtime media fantasy world.

      Futurism has, however, and finds it'll work out great for the owners.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Sat Oct 20, 2007 at 02:13:50 PM PDT

      [ Parent ]

  •  State Senator John Adler, a progressive Dem (2+ / 0-)
    Recommended by:
    sxwarren, Heiuan

    will be running against Jim Saxton.

    He is a great candidate to take Saxton on and needs all your love.

    Open your wallets and send what you can to John Adler.

    I live in NJ 01 but am looking forward to working for Adler in NJ 03.

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