The rich is getting more rich, that's for sure. The poor is getting hand outs from Obama and the likes. It's really the middle class that is squeezed and becoming the poor very quickly. The middle class pays a lot of their income as taxes. A shrinking middle class definately is contributing to the tax receipt short fall.
I don't agree that taxing things like Capital gain, etc is a solution to the problem. You want people ot invest their money to grow the economy. Additional taxes will kill the US.
Need to simplify the tax code, need to tax the excess without hindering incentive for innovation and productivity. It's not as easy as it sounds, especially with the bi-partisan politics...
In terms of whether we will hear news of riot from China or US first... I'd say it'll have to be US first, because if there's riots in China the gov't will suppress the press from getting the news out, LOL. In all seriousness, China have a growing Middle Class, while the US seems to have a shrinking one. I'd not bet on the US as a whole. US company making RMB and having production in RMB will remain very profitable however. |