Chart on wealth/income in U.S.

[packman]

The national average wage index based on compensation. Interesting chart shows we have in the U.S. 134 individuals earning over $50 million dollars a year as reported on W-2 forms. The rest of us, not so good - 50% earning less than 30K.


"The "raw" average wage, computed as net compensation divided by the number of wage earners, is $7,050,259,213,644.55 divided by 158,186,786, or $44,569.20. Based on data in the table below, about 67.2 percent of wage earners had net compensation less than or equal to the $44,569.20 raw average wage. By definition, 50 percent of wage earners had net compensation less than or equal to the median wage, which is estimated to be $28,851.21 for 2014."



https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2014

[Wellstone ruled]

1. This is a must read.

And the 1%ers wonder what all the fuss is!!!

[Jeffersons Ghost]

2. They know what all the fuss is; they just fail to realize the true outcome

[Igel]

3. But know what you're reading.

My gross salary is $8k above the average.

Then I subtract out the % for my retirement (for some, FICA; for me, a DCP)
Then I yank out my pre-tax health insurance (etc.) payments.
Then my contribution to a medical account.
Then my contribution to an IRA-like thing.

Not included is a stipend that isn't subject to federal tax.

When I'm done my federal gross wage number as reported to the IRS, one of the bits of data in this report, is $17k under the average.

My place of employment has over 300 employees. My story is going to be pretty consistent as all of our incomes--over or under that average--are lowered by anywhere from $8k to $25k/yr before having our "gross incomes" reported.

I'd also say that the middle is going to be affected more by this kind of thing than either the top or bottom quartile. You have enough money to put away some pre-tax for retirement and insurance, making you look "working poor" while building wealth. At the top, you're limited in how much tax you can avoid by pre-tax deductions.

Also remember that household income matters more than individual income. This report was individual incomes. Much of income inequality is household income inequality. Trends in the last 30 years have really made that worse--if you're a college grad, you're much more likely to be married, have higher income, have fewer kids. This lets you save money, build wealth, feel a bit less pressure over possible unemployment, be healthier and live longer (after controlling for income, making this uncomfortably related to education). If you're lower in education, you're much more likely to be lower income, have more kids, be single or divorced, and less likely to keep healthy. I watch this play out consistently at school where a lot of decisions kids make from ages 16-18 are relatively predictive of their situation when they're 22-25.

[Wellstone ruled]

4. Understand were you are going with this.

Yes,you bring the other part of Income Disparity to the table. The original piece comes from IRS/Cenus data,which is reported off of Tax Fillings. The other big factor is were one lives. Local cost of living varies greatly and through that into the equation and the Income disparity increases are even greater.

Many States tweak their numbers as a PR tool to atrack a desired societal component.