LUV News: Where’s the Money?

The mainstream liars of our mass media have been trying for some time to convince workers that their taxes are high, among other reasons, because public sector workers get paid too much.  They never make the argument that those who inherit from robber barons and have such power over our elections and media are given too much (nor are these lords and ladies ever required to do any work, as they enrich themselves off the sweat of the working class, while us peasants are told we must work harder).

In fact, often I hear rigged facts over the mass media that the rich pay most of the taxes, a complete lie.  The super rich pay next to nothing.  To come up with this “fact” requires one to re-label those who used to be called “middle class” before that term was twisted to mean middle of the working class.  In my youth, and still in much of the world, middle class meant professionals and small business owners, people today making largely six figure incomes, some of whom are small millionaires.

These old-definition middle class people do pay taxes, big taxes, and most of them are too ignorant to know that if only they had hundreds of millions or billions, there would be enough loopholes that they would only pay taxes if they wanted to, like Mitt Romney did this year so that he wouldn’t be outed as non-taxed (he refused to claim exemptions and deductions that he would otherwise have included). He didn’t, of course, disclose what he paid in previous years, probably nothing, like Nelson Rockefeller disclosed at his Senate hearing to confirm his nomination for Vice President (the billionaire paid $200 one year, zero the other year in the two federal tax returns he was required to submit while in the 70% tax rate bracket when capital gains were also taxed, days when there were far fewer loopholes for the wealthy).

The old joke has it that our income tax laws are entirely fair because the poor, like the wealthy, may write off, under the cattle depletion allowance, their livestock herds.

The disparity in who is required to pay taxes accounts for part of the fact that, from a study out this morning, between 1983 and 2010, middle income earners lost 18 percent of their net worth, even as those in the top 1 percent increased their wealth by 71 percent.

It is all a dog and pony show now, Gertrude Stein would have said “There’s no there, there.”  In the following piece, Paul Buchheit elaborates on some of the common mass media-spewed “facts,” repeated ad nauseam, refuting the hell out of them.  Citizens will, of course, not be allowed to see this in their controlled mass media.  —Jack Balkwill

Private, Public, Union, or Management: Who Takes All the Money?

by Paul Buchheit
It’s not public workers..

Start with local government, whose 14 million employees make up almost two-thirds of the public payroll, according to Census Department data. They make up 11% of the total U.S. workforce but receive only 10% of the total compensation. Their average salary is $43,000.

State government employees make up 3.6% of the U.S. workforce and receive 3.9% of the total compensation.

CEOs from the financial institutions who received TARP funds testify before the House Financial Services Committee Feb. 11, 2009. (Chip Somodevilla/Getty)
Federal employees, who make up just two percent of the total U.S. workforce, do considerably better, earning an average of $68,000. Their pay advantage is largely due to higher education levels and more advanced professional skills. The Economic Policy Institute, Bureau of Economic Analysis, the Congressional Research Service, and Congressional Budget Office all acknowledge this. 44% of federal jobs are professional positions (lawyers, economists, engineers), compared with 32% in the private sector. Close to 50% of full-time federal and state and local government employees have college degrees, compared to 35% for private employees.

Overall, Census Department data reveals that government employees earn about 1% more than private sector employees. With all retirement benefits included, the 21.4 million government employees make up 16.7% of U.S. employees and receive 20% of the total compensation.

It’s not union members..

After years of declining numbers, union employees make up about 12% of the workforce, but their total pay (14.8 million union employees with a $47,000 median salary) amounts to less than 12 percent of wages, as reported by the Census Department.

Unions are sometimes accused of excess, when in fact they keep employees from falling into substandard wage conditions. According to the State of Working America, the union wage premium exists, but it’s a modest 13.6%.

Unions also provide a degree of stability for a shrinking middle class. Retirement funding, however, is actually much less than perceived by union critics. The Pew Center notes that the latest available annual pension contribution by the 50 states amounted to just under $60 billion, which is about 1% of wages as reported by the Census Department.

Finally, unions promote equal opportunity. A recent study at Harvard and the University of Washington concluded that “the decline of organized labor explains a fifth to a third of the growth in inequality.”

It’s not, for the most part, even the private sector.

The average private sector worker makes about the same salary as a state or local government worker. But the MEDIAN salary for U.S. workers, 83% of whom are in the private sector, is almost $14,000 less, at $26,363.

This striking difference reveals the degree of inequality in private industry, and leads us to the conclusion:

CEOs and Financial Managers take much more than their share.

Corporate executives and financial employees make up just one-half of 1% of the workforce, but with nearly a trillion dollars of annual income (11.3% of $8.12 trillion), they make more than ALL 15 million unionized workers in the United States, and almost as much as ALL 21 million government workers. Much of their income derives from minimally-taxed capital gains. Meanwhile, the great majority of their private company employees toil as food servers, clerks, medical workers, and domestic help at below-average pay.

While unions and government jobs promote stability and security, private industry, which is driven by the profit motive, leads to a “winner-take-all” philosophy that is steadily splitting our country in two.

Have they earned it?

Again, consider the facts:

They’ve destroyed jobs. According to Newsweek, “the CEOs of the 50 firms that laid off the most workers since the onset of the economic crisis took home 42 percent more pay in 2009 than their peers did — largely because cutting workers boosts short-term profits.”

They’ve made the country less productive. As noted by Frontline’s Money, Power, and Wall Street, the financial industry is almost double the size of the manufacturing sector.

They’ve taken massive bonuses for their failures. Again from Frontline’s Money, Power, and Wall Street: Since the crash of 2008, banks have paid out more than $80 billion in bonuses.

As an analyst pointed out on the Frontline documentary, the rise of financial derivatives led banks to start trading for their own gain, and not for their customers. So yes, they’ve earned something. Our lasting contempt.

Paul Buchheit is a college teacher, an active member of US Uncut Chicago, founder and developer of social justice and educational websites (,,, and the editor and main author of “American Wars: Illusions and Realities” (Clarity Press). He can be reached at

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