Saturday, November 26, 2011

McArdle doesn't think 250K/year = "rich."

Mr. Livingston doesn't address this. He also attributes the "global savings glut" of the past decade to excessive wealth even though Asian central banks probably played a larger role than rich Americans and claims that the "Bush tax cuts" caused the housing bubble by leaving those over-saving rich with too much money to play with even though three-quarters of the lost tax revenues stayed in the hands of people making less than $250,000 a year—the de facto threshold for "rich" established by the Obama administration.
One, only about 2% of Americans make more than 250K/year, so yes, if you're making more than 98% the country -- you're rich.

Two, it's not a threshold for "rich" -- it's a marker for what the highest tax bracket should be.

And three, it was established by the Clinton administration.

Great job, Megan!

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