Economy Taxes

The Wealth Gap Widens and Paul Ryan Says Cut Taxes

The US Census Bureau published a report today that, not surprisingly, shows that the wealth gap continues to widen.

More significantly, it shows that the wealth gap is growing even among individual demographic groups while it also widens between different groups.

The report also details a widening of the wealth gap for households sharing the same demographic characteristics, such as age, race and Hispanic origin, and educational attainment of the householder. For example, the median net worth for non-Hispanic whites in the highest quintile was 21.8 times higher than for those in the second-lowest quintile in 2000; in 2011, this had increased to 31.5 times higher. For blacks, the ratio increased from 139.9 to 328.1, and for Hispanics, the increase was from 158.4 to 220.9.

Between 2000 and 2011, the wealth gap has also widened between groups with different demographic characteristics. For example, the ratio of median net worth of non-Hispanic whites to that of blacks rose from 10.6 to 17.5 between 2000 and 2011, and the ratio of non-Hispanic whites to Hispanics also increased from 8.1 to 14.4.

The release of this report could be seen as bad timing for House Budget Committee Chairman Paul Ryan (R-WI) who just reiterated that he wants to cut taxes for the rich.

Ryan said he didn’t want to get ahead of himself about what he may or may not do next session, but he made it clear that he disagrees with some conservatives who are willing to accept a high top tax rate in order to increase the child tax credit.

I’m a classic growth conservative. I believe that the best way to help families, the best way to help the economy is to reduce rates across the board,” Ryan said when asked about Utah senator Mike Lee’s plan to increase the child tax credit and create two income tax brackets of 15 percent and 35 percent.

Ryan is a “classic growth conservative,” which is to say that he is a classic Junk Scientist.

Conservative growth principles have never worked and they never will.