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Well they are compelling in some ways, but they got you again Isaac Send a noteboard - 25/02/2012 05:21:34 PM
Figure in the table was actually "Adjusted" Gross Income... that's actually entirely reasonable to use but might get you some queer results if you looked at, say, poor students, considering tuition and student loans do play a role in AGI vs GI.

Also, with the 'bottom 50%' <$32,396 was that the bottom 50% of people, adults, income tax payers, households, or what? I mean, if by individual does it include the 16 year old kid who earned $5000 at their summer and weekend job? That's not a small percentage of the population. Nor are people who are mostly home-makers, students, retirees, etc living with someone else who is the principle bread-winner but do some small business or part time job. If it's household income we're talking about, things get really shaky because all else being equal a family of 5 making 50k should be better off than a family of 4 making 40k. There are, also, a lot of households consisting of one person. Jane and Jon were two households at 25, making say 20k a year and doing well, they get married, become one household at 40k, weirding the data, which further gets confused when he gets promoted to 35k and she stay at home tending their two kids and saving them money by cooking from scratch and growing vegetables in the garden and babysitting her sisters kids for free too, who then repays the favor when she gets stir crazy and takes on a part time job paying 5k just to get a few hours out of the house... how's that data looking? We didn't even add in the effect of their child deductions. Or when they get a divorce and Jon deducts his alimony form his gross for his AGI while Jane goes and lives with her sister and brother in law which might not even register as a single household. And it really gets confused if some live in the city where stuff costs more, but some other stuff is free, versus rural, especially because those demographics don't average out. You do have more single people living in the cities by percentage then outside them, Jane and Jon might have lived in the city before they got married and found a nice suburban or rural place, not even factoring in lots of others things, some of which are too politically incorrect for anyone to want to mention in a study, about various demographic differences between urban and rural. Another one in there, what about people who have brand-name obsession or suck at math or chemistry compared to otherwise identical people who don't? Ten bucks says that significantly effects relative standard of living and that generally the latter also earn more too.

I remember doing a grocery run with a good friend before a BBQ we were doing where he was compares 2-liters to cans and asked me which was cheaper because he didn't have a calculator and my friends all use me as one, I tapped that little usually upper-left-corner panel where it listed price per ounce for each and he just stared at me as he realized he'd seen that a million times before and never knew the implications of it, smart guy too. You can't even try to factor crap like that into the analysis and it definitely does not average out by income level, even if one ignored that sort of knowledge is pretty heavily correlated to age too and income is very tied to age. If we're fundamentally talking about trying to raise standard of living, the actual goal, as opposed to income, the very loose metric we try to measure that through, that kind of stuff plays a huge role and you simply can't ignore it if you want actual results as opposed to good talking points.

So the data tends to be a mess and the factors don't generally 'average out', people hand-wave that in to save time or thought or the ruination of their pet theory in much the same way a young lady might say "Yeah he picked me up and bought me dinner and a movie, but I have to spend a lot on clothes and makeup" This is true, but the odds are, whichever way that balance sheet works out, it won't have been zero. It's a hand wave, which is fine in personal affairs but is a damned bad way to make national tax policy :P
The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.
- Albert Einstein

King of Cairhien 20-7-2
Chancellor of the Landsraad, Archduke of Is'Mod
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Why Joel is CRAZY - Nearly Half of All Americans Don't Pay Federal Income Taxes - 23/02/2012 04:43:15 AM 1489 Views
A not so hypothetical situation... - 23/02/2012 05:46:44 AM 906 Views
Your paying more money now than then. Lower rate but more money *NM* - 23/02/2012 07:52:51 AM 536 Views
Accurate statement, but not a justification *NM* - 23/02/2012 03:44:55 PM 428 Views
Re: A not so hypothetical situation... - 23/02/2012 02:39:43 PM 1001 Views
I don't know much about that. - 23/02/2012 03:53:27 PM 833 Views
Why the heck do you think the current tax system is skewed to the rich? - 23/02/2012 03:18:43 PM 1046 Views
That's a fair question - 23/02/2012 03:52:08 PM 928 Views
Once again, poor people have no money with which to pay taxes. - 23/02/2012 06:23:07 AM 1063 Views
50% of America is not "poor" or too poor to pay federal income taxes..... - 23/02/2012 01:01:24 PM 961 Views
It clearly is, if they're not paying taxes. - 23/02/2012 02:32:54 PM 916 Views
Regarding the mortgage deduction..... - 23/02/2012 03:20:37 PM 1036 Views
You base that statement on what, exactly? Fervent desire that it be true? - 25/02/2012 12:43:30 AM 1440 Views
2009 (the year cited for this claim) was an outlier because of temporary tax cuts and the economy. - 25/02/2012 01:14:01 AM 1214 Views
Interesting, but lacking the data I consider critical; FICA etc. should not be counted, IMHO. - 25/02/2012 02:10:45 AM 1063 Views
It's a phrasing thing, permits more bullshit - 25/02/2012 04:41:06 AM 1035 Views
Maybe I am just playing the same game,but I find stats from "the other side" compelling in some ways - 25/02/2012 10:36:40 AM 1484 Views
Well they are compelling in some ways, but they got you again - 25/02/2012 05:21:34 PM 939 Views
They both used AGI, so there has to be something else missing. - 27/02/2012 10:07:58 AM 898 Views
You're operating under the same fallacy he does - that people should pay income taxes. - 23/02/2012 12:05:52 PM 1101 Views
In much the same way - 23/02/2012 01:40:58 PM 1060 Views
Same argument re: fallacies - 24/02/2012 02:52:17 PM 875 Views
Was meant as a joke reply - 02/03/2012 06:30:15 PM 1083 Views
Joel is crazy, but I highly doubt that this is "why" - 23/02/2012 01:36:37 PM 1089 Views
HA! HA! Very well played! *NM* - 23/02/2012 03:49:35 PM 380 Views
You mention this statistic all the time. - 23/02/2012 02:16:47 PM 772 Views
Obviously, we are talking about the bottom 50%..... - 23/02/2012 03:22:43 PM 818 Views
How do you account for retired folks? - 23/02/2012 04:18:59 PM 1025 Views
social security isn't taxable either *NM* - 24/02/2012 04:21:21 AM 446 Views
Easy... he doesn't. - 25/02/2012 02:56:05 AM 764 Views
I wonder how much of that statistic is students - 23/02/2012 02:22:58 PM 1036 Views
Federal taxes - 23/02/2012 04:18:22 PM 906 Views
Your figures are fairly unrealistic - 23/02/2012 04:54:44 PM 1101 Views
Not entirely. - 23/02/2012 06:30:18 PM 850 Views
On exempting SS income: - 25/02/2012 02:30:43 AM 851 Views
Is there any reason why one should exclude the other? - 23/02/2012 07:32:09 PM 905 Views

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