Charles Hugh Smith – I have often examined the Neofeudalist structure of the U.S. economic hierarchy, and the many social and financial fault lines running through this creaking structure. For example:

America’s Nine Classes: The New Class Hierarchy (April 29, 2014)

Are You an Elitist? Class Warfare and the New Nobility (April 26, 2014)

Protecting Elites and the Clerisy Class That Serves Them (September 26, 2014)

Bifurcation Nation (June 24, 2013)

The Three-and-a-Half Class Society (October 22, 2012)

Tyranny of the Majority, Corporate Welfare and Complicity (April 9, 2010)

Today I’d like to examine the neofeudal strip-mining of the class that pays most of the taxes. These taxes support the bottom 50% who pay the 7.65% payroll taxes and receive substantial income tax credits, and enables the super-wealthy to pay lower tax rates on their vast unearned income.

Let’s take a quick glance at payroll and income taxes for context. Individual income taxes and Social Security/payroll taxes total $2.4 trillion.Corporate and other taxes add $600 billion, for a total of $3 trillion in Federal tax receipts.

2 out of 3 taxpayers pay more in payroll taxes than income taxes: Continue reading →