The wealthiest 5% of Americans were much closer to the middle class in the 50s and 60s. The wealthiest 5% were also taxed much more heavily in the 50s and 60s. Inflation doesn't explain that away. Minimum wages are not keeping pace, family incomes are not keeping pace, nothing is keeping pace with inflation... except the wealthiest of the wealthy, who are surpassing it. Saying that the government's deficit is at fault for that doesn't make sense.

Everyone should pay the same tax rate. People shouldn't be punished by system because they are smart enough to earn more.

Unless that system is artificially maintaining a work force that is underpaid, under-insured, and generally bankrupt compared to previous generations.

The reason that it's gone from "work hard and succeed" to "put yourself further in debt every year to maintain an equivalent lifestyle to your parents" is down to chronic inflation. Inflation is caused by Government deficit.

everyone should pay a balanced tax that would be fair based on income. (that is all)

That doesn't explain why the top 5% are making a larger percentage of the wealth and being taxed a smaller percentage of that wealth than they were 50 years ago. If anything, it only reinforces my point. They're the only ones whose wealth are growing at a rate higher than inflation.

First need to clear up that our income is taxed differently based on the fact did our money make the money or did we work for the money.

Income derived from investing ones money is taxed at a lower rate than income derived from work. In the US the top tax rate on long term capital gains is 15%.  Just so happens the richer make more money in investments than the poorer people. Rather than work extra hours we simply let our money work for us and that pays less tax.

We also pay taxes for Social Security, but interestingly enough once your salary hits about $106,000 you stop paying Social Security taxes. Tax the lower earners, but not the high earners.  We also pay for Medicare, but that is the same rate for everyone.

Finally the bracket you are in isnt how much you pay in income taxes. Because of limits, brackets and deductions the Marginal tax rate is lower.  Warren Buffet has multiple times said he finds it ridiculous that his marginal tax rate is lower than his secrataries.

I happen to fall in the upper 2% so selfishly I should like the way it currently works, but for the good of the country the rich should pay more taxes. We use far more of the commons than the poor and middle class.

Ah, but I don't think that minimum wages are the root of the problem.

For America, I think one of our major problems is personal debt. Americans have a horrible lust for debt, in the pursuit of more material goods.

That is in inflation-adjusted dollars. In just 15 years, credit card debt has risen almost 100% in inflation-adjusted dollars. At a 19.9% APR, that is absolutely huge in becoming a drain on wealth-creation for the poor and middle class.  Think about what wealth is: assets without liabilities (use any term you like, but that is the basis of having it). If that statement is true, then poverty is liabilities without assets. Given what our credit-driven consumerist culture buys with its credit card debt: toys, games, food, movies...Things that depreciate or have very little long-term worth, then you understand that it becomes a major impetus to wealth.

The truth is, ANYONE in America can become incredibly wealthy if they wanted to. Unfortunately, our culture is obssessed with activities that create more debt than wealth: Massive college loans, big fancy cars and houses, and massive entertainment spending. When my fiancee (now wife) and I were both working for minimum wage, we accumulated huge amounts of capital and wealth simply because we saved what we could. Although things aren't perfect (I have stupidly accumulated some debts), we are much better off than those around us, who racked up significant debts for things that never lasted.

In the end, the road to wealth or poverty becomes a feedback loop: If your somewhat better off, you likely have a lower debt-to-income ratio. As long as the money is managed decently, it continues to accrue, which allows one to become very, very wealthy over the course of a few decades. Likewise, if you continue to live in excess, and accrue a higher debt-to-income ratio, you will never become wealthy, as what would become wealth, is instead given to pay debt on goods that you no longer own (such as spending money on a PC which depreciates to $0 over 6-7 years).

Credit cards are definitely a problem, along with the rest of the accumulated debt. But that's not the entire story. Businesses have replaced higher paying manufacturing jobs with part-time service work at a much lower rate with much lower benefits. Required education levels are raising, which both postpones entering the workforce and accumulates debt for young workers. On top of that when they get a job, many of the jobs are making less than the equivalent jobs of 50 years ago. There's no easy fix to this problem but one step in the right direction would be to rid the world of the ridiculous notion of trickle-down economics, followed by massive cuts in government spending, and finally tax relief for everyone, especially the middle class.

And, most importantly, would SOMEBODY do something about the capital gains tax? It's repulsive how people who make money from money have it taxed at such a low rate. It perpetuates wealth in an unhealthy manner and fucks everyone except the top few percent.

There is also the reality that ANYONE can also make a bunch of money in a casino to, but most won't.  That is NOT because of what people do, but because of luck.  And to deny luck doesn't play a factor in someone getting incredibly wealthy, is to deny reality.  The fact is, to get massive wealth, you have to take a good number of risks that pay off.  Before anyone just pass this over, you need to know what risk is.  Risk is the chance to get a payoff or lose.  When you lose, you fall further behind.   You get early in on a bubble of demand, and then get out early enough, you will end up wealthy.  But, you don't see the bubble, guess wrong, and so on, and blammo you are out of luck.  According to some financial planner person I ran into when I worked at IBM, I was supposed to become a millionaire when I retired, if I just followed his advice and kept getting 7% annual pay raises that IBM was supposed to give out.  Well, nope, that didn't happen.  In my case, I lost my job with IBM, and ended up blowing out my 401K borrowing it for a high risk business venture.  That was then followed with bankruptcy.  Maybe I do make it someday with what I am working on now.  But, anyone here think it is because of some genius I did, or just things came together because I was lucky?  Ok, maybe God will bless me here, so it won't be luck, but I believe it is folly to believe there is some magic formula you can do that will guarantee you make it.

All this being said, it would be beneficial for everyone to live below their means, and acquire assets that generate income when one isn't working.  This is why the rich do get richer.  It is what people need to do, and if you can acquire enough assets to cover your expenses, you become independently wealth, and can retire.  And no, the American culture doesn't tell people how to get financially independent.  It teaches people how to live a middle class existence, which is increasingly becoming unsustainable at this point, and does require more be done.  People need to learn how to go from being consumers to creators who produce things of value that make a difference in the world.  It starts by turning off the TV and working to refine skills that people want, and that can then be leveraged using things like the internet. It requires also mastering being content, so you don't go distrated by doodads that do nothing to increase wealth, but also be able to be focused on performing and getting better at this, and wanting more, based on a solid foundation.  No guarantees here, but you stand a FAR better chance of getting a head if you do this, rather than get sucked into the consumer land of evermore.  The American economy is built on it, and one has to wonder how sustainable it is.