The data from the Federal Reserves has now revealed that the top 1 percent of America’s wealthiest citizens now hold more wealth than the entire middle class. It was reported that about 77.5 million, which constitutes 60% of the US household, belong to the middle class with annual pay ranging from $27,000 to $141,000. On the other hand, the rich constitute barely 1.3 million households, of which 26.6% only have an annual pay of more than half-million dollars.
The top 20% of America’s elite have witnessed their share rising about 10 points since 1991, while the middle class has only seen a decline in their share of real estate, private business, and corporate equities in the past three decades. Just last year, while everyone else was caught up in the crisis and many even lost their livelihood, the rich managed to increase their wealth up to 40 percent in a single year. It all happened as joblessness had struck millions of people, with lockdowns having been imposed, shuttering thousands of small and medium enterprises. Another report from October 2019 has revealed that the top 400 Richest American citizens paid lower tax than the middle class and other income comes in America and that too for the first time setting up a record.
The only logical conclusion is that the wealthiest individuals have been paying far fewer taxes than the whole middle class, although earning twice as much as the middle class. They are paying lower federal, state, and local taxes than the working class. It is now being realized as one of the economic problems in the country as more and more reports are being unearthed upon investigation for such Elites not paying their fair share.