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Friday, April 29, 2005

Oh screw it, American Idol is on!

The Economic Policy Institute reports the economic well-being of middle-class families has declined between 2000 and 2003 for three reasons: the generally lousy economy, the Bush tax policies and the cost of health care.

Pre-tax incomes for middle-class families of every type (children, young singles, seniors, single mothers) are down, leaving the typical household with $1,535 less income in 2003 than in 2000, a drop of 3.4 percent.

After taking into account changes in both pre-tax incomes and taxes, the finding remains that most middle-class families lost ground between 2000 and 2003. This is true for married couples with children, elderly couples and young singles, although single mothers did gain 1.9 percent because of the greater refundability of child tax credits.

Family spending on higher insurance co-pays, deductibles and premiums escalated, rising three times faster than income for those married with children, absorbing half the growth of their income.

The Tax Justice Network recently reported the world's richest individuals have placed $11.5 trillion in assets in offshore tax havens to avoid paying taxes, a sum 10 times the GDP of Great Britain. The most authoritative study yet done shows that rich people clip $860 billion in coupons a year off this money.

"Governments appear unable, or unwilling, to prevent the rich employing aggressive strategies to minimize their tax liabilities," said the Observer of Britain. We can emphasize the "unwilling" with this administration.

The ratio of CEO pay to average worker pay reached 301-to-one in 2003. The average worker takes home $517 a week, while the average CEO earns $155,796, according to BusinessWeek. In 1982, the ratio was 42-to-one.

-- from Molly Ivins

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