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Offbeat Atlanta Ranks Worst in Income Inequality in the U.S.

14:50  11 october  2018
14:50  11 october  2018 Source:   bloomberg.com

Inequality is worse than we know. The super-rich really do avoid a lot of taxes.

  Inequality is worse than we know. The super-rich really do avoid a lot of taxes. A lot of wealth is being held offshore. And it’s a lot. Zucman and his team estimate that around 10 percent of global GDP is being held inside all the different tax havens. It’s not as bad for the United States as it is for a lot of other countries — about half of Russia’s wealth, for example, has been moved out of the country — but it’s enough to increase the top 0.01 percent’s share of household wealth from about 7 percent to almost 8 percent. That’s over $1 trillion hiding overseas.

Boston' s income inequality ratio stands at 14.7, Brookings found. The city' s economy has grown along with the fortunes of the tech industry and money management firms like Fidelity, which are based in the New England metropolis. Atlanta ranks as the nation' s city with the biggest inequality problem.

Putting Obama' s proposed tax hike on the rich in an international context. Billionaire investor Warren Buffett has argued the U . S . must raise taxes on the rich / Reuters. Perhaps the most politically contentious aspect of President Barack Obama' s new proposed legislation

  Atlanta Ranks Worst in Income Inequality in the U.S. © Scott Dunn/Getty Images Atlanta now takes the crown as the city with the greatest income disparity in America, surpassing Miami after a two-year reign in the top spot, according to a Bloomberg analysis.

Bloomberg ranked large cities -- those with populations of at least 250,000 -- based on the Gini coefficient as calculated by the U.S. Census Bureau. The ratio measures the distribution of household income among individuals, reflecting absolute equality at zero and complete inequality with one.

Atlanta rose to the top spot for 2017 after spending the past three years in second place, followed by New Orleans. Philadelphia moved to the No. 3 spot, jumping 17 places in only one year, the sharpest negative move among the top 10 worst cities.

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  Why retirees' tax rates may be higher than they expect You may retire, but the IRS won't.Though high-income retirees are looking forward to lower taxes once they've exited the workplace, they can still expect to pay stealth taxes in the form of Social Security income levies and higher Medicare premiums.

Not only was income more equally divided in the colonies, but Americans across the economic spectrum tended to be richer than their European counterparts. Some would argue that income inequality is an acceptable sacrifice to make in return for income mobility — the ability for children

Income inequality in the United States has increased significantly since the 1970 s after several decades of stability, meaning the share of the nation' s income received by higher income

Income inequality worsened the most in St. Petersburg, Florida, which moved up 37 spots from the year-earlier period. Irvine, California, improved the most in terms of ranked positions, moving down 45 spots on the inequality ladder. Chandler, Arizona, was the only new city to join the list after meeting the minimum population requirement to be included. More than half of all cities on the list showed a tightening among the income brackets.

Atlanta has been building to the top spot, making it far from unexpected, said Alan Berube, senior fellow and director of the Brookings Institution’s Metropolitan Policy Program. The home of several Fortune 500 companies, including Delta Air Lines Inc. and Coca-Cola Co., the city boasts extreme wealth, with many executives earning top-dollar salaries.

This City Has the Greatest Income Inequality in the U.S.

  This City Has the Greatest Income Inequality in the U.S. It's no longer Miami.

Atlanta ranks as the nations city with the biggest inequality problem. Its income inequality ratio is 18.1, with residents at the 20th percentile "The most astonishing changes in the mid-2010 s occurred among high- income households in a few cities characterized by booming technology economies."

Atlanta now takes the crown as the city with the greatest income disparity in America, surpassing Miami after a two-year reign in the top spot, according to a Bloomberg Irvine, California, improved the most among ranked metro areas. Income inequality worsened the most in St. Petersburg, Florida.

At the same time, many individuals work low-paying jobs in the hospitality and retail sector. The city’s poverty rate sits at 24 percent -- or nearly one in four people, according to the U.S. Census Bureau.

Creating new jobs and improving the skill level of workers will help address these income gaps over time, according to Daron Acemoglu, economics professor at the Massachusetts Institute of Technology who specializes in economic inequality.

"A lot of cities have been adversely affected because industries they specialize in have been hard hit by either automation, robots or globalization," Acemoglu said. "That has had most of the negative affects on the lower-skill workers."

About 18 percent of households in Atlanta earn $150,000 a year or more, compared with 9.3 percent of households who make less than $10,000 annually.

"Every city has some of these economic extremes. Atlanta just has them in spades," Berube said. "At the high end, it looks like one of the most successful American cities, like a San Francisco or a New York or a Washington. But at its low end, one of America’s poor cities."

Top 3% of U.S. Taxpayers Paid Majority of Income Taxes in 2016

  Top 3% of U.S. Taxpayers Paid Majority of Income Taxes in 2016 Individual income taxes are the federal government’s single biggest revenue source. In fiscal year 2018, which ended Sept. 30, the individual income tax is expected to bring in roughly $1.7 trillion, or about half of all federal revenues, according to the Congressional Budget Office. If past statistics can offer any guidance, in 2016, $1.44 trillion income taxes were paid by 140.9 million taxpayers reporting a total of $10.2 trillion in adjusted gross income, according to data recently released by the Internal Revenue Services.

A comprehensive index from the World Economic Forum finds that for such a rich country, America isn't doing all that well at creating prosperity.

Out of 141 countries, the U . S . has the 4th-highest degree of wealth inequality in the world, trailing only Russia, Ukraine, and Lebanon. Yet the financial industry keeps creating new wealth for its millionaires. According to the authors of the Global Wealth Report, the world’ s wealth has doubled in ten years

In the No. 2 New Orleans, more than 9.1 percent earn $150,000 or more, while 15.1 percent earn less than $10,000.

In Philadelphia, 8.2 percent earn $150,000 or more while 19.5 percent earn incomes at the bottom.

"Philadelphia is gentrifying right now. It was a poorer and struggling city for quite a long time, and now, there are more high-paying jobs and more amenities in and around the center," Berube said. "Vast amounts of North Philadelphia still have high levels of unemployment."

To contact the reporters on this story: Sarah Foster in Washington at [email protected];Wei Lu in New York at [email protected]

To contact the editors responsible for this story: Brendan Murray at [email protected], Alex Tanzi

For more articles like this, please visit us at bloomberg.com

©2018 Bloomberg L.P.

Trump says team working on tax cut for middle-income earners.
U.S. President Donald Trump said the administration was studying a tax cut for middle-income earners that could be rolled out some time around the beginning of November, just before pivotal congressional elections. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); Trump mentioned the proposed tax cut in the same week the U.S. government ended the 2018 fiscal year with a $779 billion deficit, the Treasury Department said on Monday, as previous Republican-led tax cuts squeezed revenues.

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