Forums: Community: The Soap Box: Re: [scrapedape] what is a 1%er: Edit Log


Dec 3, 2011, 8:49 PM

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Registered: Sep 26, 2004
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Re: [scrapedape] what is a 1%er
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scrapedape wrote:
guangzhou wrote:
scrapedape wrote:
guangzhou wrote:
Come down, I will introduce you to a few of the people clearing 350,000 a year right here in Surabaya. We cans tart with the my climbing gym membership roster.

GDP per person here, you really need to visit Indonesia if you believe that number to be an accurate representation. I can take you to the cliff and I develop and you can meet plenty of people, the entire village, who don't clear 1000 USD a year.

During interview, I was asking potential job candidates what they made at their full time job, non cleared 100 USD a month, about half made 60 USD a month. All have motorcycles tot ravel with, and a house with electricity and running water in the city limits.

Reading statistics online is no substitute for seeing things first hand.

Average income of an Adult member of the climbing gym I own here in Indonesia is 175,000 USD per person. I have at least 5 members who clear 1/2 million U.S. a year and I have far less than 1% of Surabaya as members of my gym.

On averages, if one person is making 1000 a year and the other making 2 million a year, the average income of these two people just over 1 Million per person.

How does this square with your earlier claim that $350K wouldn't be top 1% in Indonesia, let alone the US?

Because the top 1% here earn much more. We're talking about people who own several oil, mining operation, and other huge companies that deal in Natural recourse.

One person I climb worth here own four shopping malls, Singapore, Hong Kong, Malaysia, and Indonesia and a chain of 5 start hotels in each of those countries.

I would bet a top 1% in America spend more than 350,000 USD on a house mortgage annually.

I agree 350,000 get you in the high tax rate with the 1%, but you're not one of them.

Look, myself and others have posted links to statistics indicating that $350K is the rough cutoff point for the top 1% in the US. You continue to counter this with anecdotes and conjecture. Why should we believe you are right?

Moreover, you have yourself talked about how many people you see making less than $100/month and whole villages making less than $1000/year. So how does that support your claim that 1% are making 350K? An alternative interpretation of your observations is that your clientele and climbing partners are more like the top 0.1 or 0.01%.

It's easy to get blinded by what we regard as normal. If I only based the numbers on the people I see on a regular basis, I would guess that a typical HH income in the US is somewhere on the order of $100K, because I live in an expensive city and hang out predominantly with professionals in their early 30s. I know this isn't the case, however, because other people have actually collected data on this, and found that median HH income is about half that level.

That's because the data use is just income for a job based on tax returns. So, Again, I still believe that the top 1% of America os earning substantially more.

To know exactly how much more, you would have to look at job income, investments and other capital gains, and residuals.

Most of the top 1% are their because of the various businesses they own and they tend to keep the salaries to themselves low, but the profit of those companies are still part of their earnings in my book. A business is a great tax shelter. The top earners also use the laws to create holding companies to help lower personal income and tax liability.

People here keep saying the top needs to may more taxes, but the same data that identifies the top 1% as 350,000 or more year says that the top 1% pay approximately 40% of America's federal taxes. Hardly seems like they should be paying more in my book.

So, based on Salary and work bonus alone, I can believe 350,000, but the true top 1% are earning much much more.

I knew one guy while living on the Kentucky Tennessee border who owned a chain of strip clubs outside a few military bases. As the CEO he paid himself a salary of 1500 (one thousand five hundred) dollars month. All aspects of his life were paid for via various business and holding companies with expense accounts.

Every year he qualified for an earned income credit, he definitely had are venue of more than 1/2 million a year, he just knew how to use the system to lower his income in the eyes of the taxman.

Salary alone at 350,000 I can believe that, but personal revenue for the rich is much more complicated that their paychecks.

As for being blinded by what we personally experience, I agree with you. Works in both directions.

(This post was edited by guangzhou on Dec 3, 2011, 8:55 PM)

Edit Log:
Post edited by guangzhou () on Dec 3, 2011, 8:55 PM

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