One Percenters?

 

Natural Gift

You don't have to be a genius to find
All the hidden potential deep in your mind
You don't have to know about nuclear physics
Know all the formulas and vital statistics

But if you don’t know statistics, then expect to be taken advantage of by those that do.

Much has been written about the 1%-ers. 3 Sigma or the Mean plus three Standard Deviations, SD, happens to be 99.7%, in other words not  the 1%-ers, but the 0.3%-ers.

If you know the Mean income, and you also know that income will not be below $0, then by reporting the Mean, and saying that the Mean minus 3 SD must be greater than zero, you are stating what the upper bound should be of the Standard Deviation, SD,  that is 0 = Mean – 3 SD,  or SD is equal to Mean /3 .  I can then state what income should be for the 0.3%-ers, it is twice the mean or  99.7% of the income,  the 0.3%-er income, which is Mean plus 3* SD, or 2 * mean.

This indicates that if you know the Mean income, or wealth, then you can compute what the  lower level for the 0.3%-ers should be. (i.e. how much income or wealth or should be needed to be in the 0.3%-ers club)

The 2019 Mean income as reported by the US Census is $98,088. That indicates that an income of $196,176 should put you in the 0.3%-ers club . The US Census reports that the 2019 Mean household wealth, including the value of the home, is  $445,900, and excluding the equity in the home, it is $321,900. That indicates that the entry into the 0.3%-ers club should be a wealth of $891,800 including the equity in your home, or $643,800 not including the equity in the home.

Also the federal is on income, not on people. If 10% of the people have 10% of the income then that 10% of the people can be expected to pay 10% of the income tax. However if 0.3% of the people have 90% of the income, then that 0.3% should be expected to pay 90% of the income tax. They should NOT be expected to pay 0.3% of the income tax.

Why do you think they are coming for our math books? Figures don’t lie, but liars do figure. Maybe the top 0.3% have more income and wealth than they would like us to know and expect.