Double Debt : Think about the chart on the left - wages as a percent of personal income - going down means non wage income -
interest, rent, dividends, royalties, etc. (except for capital gains in the US) are going up.
The next column is spending as a percent of wages....
So to get spending as a percent of personal income, multiple the numbers for each time period....
That's not yet a crisis...
>>>Since capital gains are NOT counted, when you sell that rental property, or Oil Stock, or the stock from your tech company, that will NOT COUNT AS PERSONAL INCOME...in the USA.
In Canada, where someone actually showed up for that 9 AM Accouting 101 class, it will count.
Amazingly, it can SPENT just like regular money ;-)
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I'm still gathering data on how big the uncounted cap gains side of income is...but it is easily 2-3% of the personal income figure.
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It is not clear that the income side and cap gains is capturing all the gains in IRAs, 401(k), 403(3b), varible annuities, 529 college savings programs, etc.
It isn't clear if income information is captured for beneficial trusts for indivduals. Pretty sure that offshore trusts don't show up.
Many wealthy people set up personal charitable foundations, which often have a tax dodge element and/or something diverted for thier personal benefit. |
