Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

Please Support Common Dreams This #GivingTuesday

Our coverage of the climate emergency, Covid-19, and rising authoritarianism have intensified over the last two years. But our expenses during the pandemic have gone up as well. This has been one of the toughest years we’ve ever faced. Though our content is free to all, less than 1% of our readers ever make a donation. We're counting on you. Please support independent media today.

Please Help This #GivingTuesday -- Though our content is free to all, less than 1% of our readers give. We’re counting on you. Please help Common Dreams end the year strong.

Some Outrageous Facts about Inequality

Paul Buchheit

Studying inequality in America reveals some facts that are truly hard to believe. Amidst all the absurdity a few stand out.

1. U.S. companies in total pay a smaller percentage of taxes than the lowest-income 20% of Americans.

Total corporate profits for 2011 were $1.97 trillion. Corporations paid $181 billion in federal taxes (9%) and $40 billion in state taxes (2%), for a total tax burden of 11%. The poorest 20% of American citizens pay 17.4% in federal, state, and local taxes.

2. The high-profit, tax-avoiding tech industry was built on publicly-funded research.

The technology sector has been more dependent on government research and development than any other industry. The U.S. government provided about half of the funding for basic research in technology and communications well into the 1980s. Even today, federal grants support about 60 percent of research performed at universities.

IBM was founded in 1911, Hewlett-Packard in 1947, Intel in 1968, Microsoft in 1975, Apple and Oracle in 1977, Cisco in 1984. All relied on government and military innovations. The more recently incorporated Google, which started in 1996, grew out of the Defense Department's ARPANET system and the National Science Foundation's Digital Library Initiative.



The combined 2011 federal tax payment for the eight companies was just 10.6%.

3. The sales tax on a quadrillion dollars of financial sales is ZERO.

The Bank for International Settlements reported in 2008 that total annual derivatives trades were $1.14 quadrillion. The same year, the Chicago Mercantile Exchange reported a trading volume of $1.2 quadrillion.

A quadrillion dollars is the entire world economy, 12 times over. It's enough to give 3 million dollars to every person in the United States. But in a sense it's not real money. Most of it is high-volume nanosecond computer trading, the type that almost crashed our economy. So it's a good candidate for a tiny sales tax. But there is no sales tax.

Go out and buy shoes or an iPhone and you pay up to a 10% sales tax. But walk over to Wall Street and buy a million dollar high-risk credit default swap and pay 0%.

4. Many Americans get just a penny on the dollar.

  • For every dollar of NON-HOME wealth owned by white families, people of color have only one cent.

     
  • For every dollar the richest .1% earned in 1980, they've added three more dollars. The poorest 90% have added one cent.

     
  • For every dollar of financial securities (e.g., bonds) in the U.S., the bottom 90% of Americans have a penny and a half's worth.

     
  • For every dollar of 2008-2010 profits from Boeing, DuPont, Wells Fargo, Verizon, General Electric, and Dow Chemicals, the American public got a penny in taxes.

5. Our society allows one man or one family to possess enough money to feed EVERY hungry person on earth.

The United Nations estimates that $30 billion per year is needed to eradicate hunger. Several individuals have more than this amount in personal wealth.

There are 925 million people in the world with insufficient food. According to the World Food Program, it takes about $100 a year to feed a human being. That's $92 billion, about equal to the fortune of the six Wal-Mart heirs.

One Final Outrage...

In 2007 a hedge fund manager (John Paulson) conspired with a financial company (Goldman Sachs) to create packages of risky subprime mortgages, so that in anticipation of a housing crash he could use other people's money to bet against his personally designed sure-to-fail financial instruments. His successful gamble paid him $3.7 billion. Three years later he made another $5 billion, which in the real world would have been enough to pay the salaries of 100,000 health care workers.

As an added insult to middle-class taxpayers, the tax rate on most of Paulson's income was just 15%. As a double insult, he may have paid no tax at all, since hedge fund profits can be deferred indefinitely. As a triple insult, some of his payoff came from the middle-class taxpayers themselves, who bailed out the company (AIG) that had to pay off his bets.

And the people we elect to protect our interests are unable or unwilling to do anything about it.


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Paul Buchheit

Paul Buchheit

Paul Buchheit is an advocate for social and economic justice, and the author of numerous papers on economic inequality and cognitive science. He was recently named one of 300 Living Peace and Justice Leaders and Models. He is the author of "American Wars: Illusions and Realities" (2008) and "Disposable Americans: Extreme Capitalism and the Case for a Guaranteed Income" (2017). Contact email: paul (at) youdeservefacts.org.

... We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.

New Research Finds Climate Emergency the 'Overwhelming Factor' Behind Australian Bushfires

"It is now clear that human-induced climate change is creating ever more dangerous conditions for fires in Australia."

Andrea Germanos ·


Socialist Candidate Takes Commanding Lead in Honduran Election

Xiomara Castro, wife of Manuel Zelaya, a leftist former president ousted in a U.S.-backed coup in 2009, is on track to defeat the candidate of the right-wing incumbent party.

Kenny Stancil ·


WHO Chief Urges Pandemic Treaty to Avoid Another 'Crisis of Sharing and Solidarity'

"It will all happen again unless you, the nations of the world, can come together to say with one voice: never again."

Julia Conley ·


Iran Says US Must Lift 'Tyrannical and Illegal' Sanctions to Return to Nuclear Deal

"The Islamic Republic of Iran has entered the talks with a strong will and elaborate preparations in order to ensure the removal of unlawful and cruel sanctions."

Jake Johnson ·


2.5 Million Nurses Demand UN Probe Into 'Covid-19 Criminals' Blocking Patent Waiver

The European Union, the United Kingdom, Switzerland, Norway, and Singapore "must be investigated for blocking a faster global vaccine rollout leading to the loss of countless lives."

Jake Johnson ·

Support our work.

We are independent, non-profit, advertising-free and 100% reader supported.

Subscribe to our newsletter.

Quality journalism. Progressive values.
Direct to your inbox.

Subscribe to our Newsletter.


Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit | Privacy Policy
Common Dreams Logo