DIYbanter - View Single Post - OT-Taxing the rich

Ignoramus23509

On 2011-03-30, wrote:
On Mar 30, 3:21?pm, Hawke wrote:

So when bandying around the term rich it's good to understand who you
really mean. The well off millionaire you know in your local area
probably isn't really rich. If he was he'd live in Beverly Hills or the
Hamptons. In America these days rich means really, really, really, rich.
Anything less than hundreds of millions doesn't even cut it.

Hawke

Who cares? I am not envious of the very rich. Why does it bother you
so much?

I am not envious, but I hope to be in the top 1%. It probably will
never materialize, but I would like that to happen. Because of this, I
have some interest in this matter.

Note that income and wealth (net worth) are not equally
distributed. There are people with high net worth and comparatively
low income. Say, someone with 10 million dollars invested 50% in cash,
and 50% in diversified stock investments (typical), would likely earn
about $150,000 per year in dividends and interest, which is a very
unremarkable income -- but $10,000,000 is a remarkable wealth.

So, the word "rich" has many meanings and is not a precisely defined
term.

Income inequality is known to exist between rich and poor, but what is
not so well known is that among the rich, the inequality is even more
pronounced. Scores of little guys who saved up between 1 and 5
millions, and just a few super wealthy billionaires. Source is a book
called _Richistan_, which I personally highly recommend.

i