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The claim of growing income inequality is a myth, an illusion created by the Census Bureau’s failure to account for taxes and welfare, according to Phil Gramm and John Early, published in the Wall Street Journal on March 23, 2021.

Despite the claim that widening income inequality is a fatal flaw in capitalism and an “existential” threat to democracy, the authors point out that the data upon which claims about income inequality are based are profoundly flawed.

“This is a very important article,” said Jim Tobin, economist and president of Taxpayers United of America (TUA), “because Gramm and Early are outstanding experts in economics and the way the tax-and-spend Washington politicians have politicized economics.”

The authors point out that Census Bureau income data fail to count two-thirds of all government transfer payments—including Medicare, Medicaid, food stamps and some 100 other government transfer payments—as income to the recipients.

In addition, “Census data fail to count taxes paid as income lost to the taxpayer. When official government data are used to correct these deficiencies—when income is defined the way people actually define it—‘income inequality’ is reduced dramatically.”

The authors conclude, “The raging debate over income inequality in America calls to mind the old Will Rogers adage: ‘It ain’t what you don’t know that gets you into trouble. It is what you do know that ain’t so.’  …Those who want to transform the greatest economic system in the history of the world ought to get their facts straight first.”

Phil Gramm is a former chairman of the Senate Banking Committee and a visiting scholar at the American Enterprise Institute. John Early served twice as assistant commissioner at the Bureau of Labor Statistics.


Chicago-Taxpayers United of America (TUA) executive director Matthew Schultz today criticized President Biden’s soon to be announced infrastructure initiative as both deceptive and redundant.

“President Biden is promising to spend up to three trillion dollars in taxpayer’s money on what he calls infrastructure,” said Matthew. “We don’t need an infrastructure bill like Biden is proposing, and his bill is set to be another tax money giveaway, funded with tax hikes.

“When it comes to roads, Biden seems to have forgotten that it’s not the 1940’s anymore. The United States has road connections. In fact, the USA has the most roads out of anyone in the world. Not only that, but the USA has some of the best roads in the world, ranking among the top ten. We don’t need Trillions of dollars in new roads or road rebuilding.”

“That’s why Biden is promising to spend taxpayer’s money on other things that can be called incrusted if you squint hard enough. He wants to run up the taxpayer credit card with nebulous things like climate change, poverty, education. In reality, whatever muted effect these initiatives will have, will drastically increase government spending on bureaucracy and hand taxpayer money to all of Biden’s government friends.”

“Whatever the spending looks like, it is important to remember that it is taxpayers that will foot the bill. Some of the tax increases could include over the next ten years a payroll tax increase on high-income households costing $740 billion, a corporate income tax increase from 21 to 28 percent, worth $730 billion, a minimum tax on foreign earnings of US companies $440 billion, a higher capital gains and dividend taxes of $370 billion, and an individual income tax increase for high earners that will reel in $310 billion. Infamously, Biden Transportation Secretary Pete Buttigieg even suggested a vehicle miles tax, a tax on how far you drive, could be implemented.”

“The future infrastructure bill will be nothing but a tax increase to enrich government employees at taxpayer expense.”  


val vote no
val vote no

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Taxpayers United of America (TUA) is working with local taxpayers to defeat a property-tax-increase referendum placed on the April 6, 2021 ballot by The Village of Steger.  

“This property-tax-increase referendum, if passed, would increase property taxes $182/yr. per $100,000 of home value,” said Jim Tobin, economist and TUA president.

“The Illinois unemployment rate is 7.6% and climbing, and, yet, Steger wants to raise taxes during a pandemic.”  

“25% of state spending is used to pay pensions of retired government employees. Taxpayers need to know this. That’s where a lot of taxpayer dollars are going. Saying that tax dollars always go to necessary projects is a myth and a scam.”

“We have released our study of Village of Steger top pensions. Here are the top two.”

“William Cox retired at age 60, and received an annual pension in 2020 of $50,815. His pension benefits to date total $301,686.”

“Richard Stultz retired at age 73, and received an annual pension in 2020 of $35,097. His pension benefits to date total $203,298.”

“Steger homeowners need to be reminded that it is their property taxes that are funding these fat pensions for retired government bureaucrats.”

“It’s time local governments come clean with their constituents. While taxpayers are struggling to pay their bills during this pandemic, government bureaucrats are raking in generous salaries and lavish, gold-plated pensions, at taxpayer expense. And, not only that, Steger’s retired bureaucrats are eligible for Social Security Benefits!”