Net worth would also be bogus as a measurement...
In my city, statistics were published about the income levels in various neighbourhoods. The Mayor was totally surprised! It seemed that the older established 'rich' areas of the city had income levels in the middle, and that a number of newer subdivisions were the income leaders. He was at a loss to explain this, and pronouced the study as flawed.
Here's a classic case of the difference between high income and high net worth. Sure, two income professional couples are raking in the loot big time, and building monuments to their success -- in new neighbourhoods. Many have mortgages as large as their egos. In contrast, the people living on 'Prosperity Row', many who are retired, have accumulated wealth over a lifetime, and are no longer needing or wanting high incomes: They have made tax minimizing a priority.
We mustn't confuse income and wealth. Income is money coming in, wealth is money that stays. To a great extent, we have decided to tax income instead of wealth. People have responded to this tax environment and ordered their affairs to reduce taxes.
Cheers, PW.
P.S. I have read that very few nations do not tax wealth. |
