Tag Archives: class

State and Local Taxes Penalize the Poor and Benefit the Rich

Americans have become increasingly critical of public policy as a means of addressing social problems.  Many believe that these policies don’t work; the reality is that public policies are often subverted in ways that make them ineffective or even counterproductive.

Take taxes and inequality.  As Danny Vinik, writing in the New Republic explains:

The vast majority of Americans—both liberals and conservatives—believe that state and local taxes should also be progressive. That’s the finding of a new report released by WalletHub Monday. The researchers surveyed 1,050 Americans on what they thought the combined rate of state and local taxes should be at various income levels. Not surprisingly, liberals want the rate structure to be a bit more progressive than conservatives do, but their responses [as the following chart shows] were relatively similar:

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However the reality is quite different.  State and local taxes are actually quite regressive.  The Institute for Taxation and Economic Policy studied the “fairness of state and local tax systems by measuring the state and local taxes that will be paid in 2015 by different [non-elderly] income groups as a share of their incomes.”  They did this state by state and, as presented below, on an overall basis.  As we can see, the lower the income, the greater the state and local tax burden.

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Here are some of the report’s key findings:

  • Virtually every state tax system is fundamentally unfair, taking a much greater share of income from low- and middle-income families than from wealthy families. The absence of a graduated personal income tax and overreliance on consumption taxes exacerbate this problem.
  • In the 10 states with the most regressive tax structures (the Terrible 10) the bottom 20 percent pay up to seven times as much of their income in taxes as their wealthy counterparts. Washington State is the most regressive, followed by Florida, Texas, South Dakota, Illinois, Pennsylvania, Tennessee, Arizona, Kansas, and Indiana.
  • Heavy reliance on sales and excise taxes are characteristics of the most regressive state tax systems. Six of the 10 most regressive states derive roughly half to two-thirds of their tax revenue from sales and excise taxes, compared to a national average of roughly one-third . Five of these states do not levy a broad-based personal income tax (four do not have any taxes on personal income and one state only applies its personal income tax to interest and dividends) while four have a personal income tax rate structure that is flat or virtually flat.
  • States commended as “low tax” are often high tax states for low-and middle-income families. The 10 states with the highest taxes on the poor are Arizona, Arkansas, Florida, Hawaii, Illinois, Indiana, Pennsylvania, Rhode Island, Texas, and Washington. Seven of these are also among the “terrible ten” because they are not only high tax for the poorest, but low tax for the wealthiest.

In short, we know how to construct tax policies that can lessen inequality, but we’re not using state and local taxes to do it.

Cross-posted at Reports from the Economic Front and Pacific Standard.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

A Haunting Illustration of Work Under Capitalism

Karl Marx argued that capitalist modes of production always involve the exploitation of the working class by the owning class. The owning class are the capitalists. They secure the means of production — the factories, tools, and machinery — and employ workers to use those resources to produce goods.

When these goods are sold, capitalists extract the surplus value. This isn’t an magical good that blinks into existence thanks to the Capital Fairy, it’s a concrete good derived directly from the exploitation of the working class. Surplus value only exists when workers are paid less than the value they added with their work. If they were paid as much as their work was worth, capitalists would break even. And that’s not what they have in mind.

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In other words, if capitalists paid workers what their work was actually worth, there wouldn’t be any profit left to skim off the top, leaving the rest of us with a value deficit.

More comics at A Softer World.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Just for Fun: The Proud Soc’t Parent’s Bumper Sticker

Zach Weinersmith does it again:

1Thanks to James Bowie for the link!

 

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Elite University Degrees Do Not Protect Black People from Racism

Disentangling the effects of race and class on the social mobility of black Americans is one of sociology’s important jobs. A new study by S. Michael Gaddis is a nice contribution.

Gaddis sent resumes to 1,008 jobs in three parts of the United States. Some of these fictional job applicants carried degrees from an elite university: Stanford, Harvard, or Duke. Some had names that suggested a white applicant (e.g., Charlie or Erica) and others names that suggested a black applicant (e.g., Lamar or Shanice).

Both phone and email inquiries from people with white-sounding names elicited a response more often than those from black-sounding names. Overall, white-sounding candidates were 1.5 times more likely than black-sounding candidates to get a response from an employer. The relationship held up when other variables were controlled for with logistic regression.

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Gaddis goes on to show that when employers did respond to candidates with black-sounding names, it was for less prestigious jobs that pay less.

Comparing applicants who are black and white and have elite vs. more middle-of-the-road university degrees, blacks with elite degrees were only slightly more likely than whites with less impressive degrees to get a call back. As is typically found in studies like these, members of subordinated groups have to outperform the superordinated to see the same benefit.

H/t Philip Cohen.

 

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Working Conditions in Modern Agriculture

If you are worried about the abuse and exploitation of non-human animals, you can become a vegetarian or a vegan. But if you worry about the abuse and exploitation of humans, there is no morally upright consumer choice you can make, short of growing 100% of your food yourself.

This is the main message of journalist Eric Schlosser in this 4min video produced by BigThink. In it, he summarizes the extent of the exploitation of poor people, mostly immigrants, in the restaurant industry, the meatpacking industry, and the production of fresh fruits and vegetables in the U.S.

Especially for the people who pick our produce, he insists, the working conditions “are more reminiscent of the mid-nineteenth century than they are with the twenty-first century.” It is “literally slavery.”

Watch here:

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Growing Up Poor Has Effects on Your Children Even If You Escape Poverty

We have become more aware that Americans’ chances of upward economic mobility have for decades been a lot lower than Americans imagined, that being poor or rich can last generations. Efforts to explain that lock-in have pointed to several patterns, from the intergenerational inheritance of assets (or debt, as the case may be) to intergenerational continuity in child-rearing styles (say, how much parents read to their children). In such ways, the past is not really past.

Increasingly, researchers have also identified the places – the communities, neighborhoods, blocks – where people live as a factor in slowing economic mobility. In a post earlier this year, I noted a couple of 2008 studies showing that growing up in poor neighborhoods impaired children’s cognitive skills and reduced their chances to advance beyond their parents. In this post, I report on further research by NYU sociologist Patrick Sharkey (here and here) suggesting that a bad environment can worsen the life chances not only of a child, but that of the child’s child, an unfortunate residential patrimony.

Consider the ways that the immediate environment shapes a child’s development. It does so physically. Air and soil pollution, noise, and traffic, for example, measurably affect children’s health, stress, and cognitive development. Local institutions and resources, such as the policing, quality of the schools, availability of health services, food options, parks, and so on matter, as well. And the social environment may matter most of all. Growing up in a community with gangs, dangerous streets, discouraging role models, confused social expectations, and few connections to outsiders commanding resources is a burden for any child. Just getting by day-to-day can be a struggle. (In a pair of studies, Sharkey found that a violent crime occurring near black children’s homes in the days before they took a standardized test reduced their scores on the test, presumably because of anxiety and distraction.)

In their research on historical effects, Sharkey and co-author Felix Elwert used a survey that has followed thousands of American families since 1968 (the PSID). The researchers know much about the adults in the survey, including where they lived when they were around 16, about the children they had and where those children lived around the age of six. The researchers also have the results from cognitive tests administered to those children in 2002.

Sharkey and Elwert found that living in a neighborhood where 20 percent or more of the residents are poor — many other things being held constant (including the parents’ education, health, and attitudes) — seems to lower the test scores of children. And so does having a parent who grew up in such a neighborhood. The effect on children of living in a poor neighborhood and having parents who had also are substantially greater than the effect of only the second generation living in a poor neighborhood. Moreover, the children of two generations of poor neighborhoods do much worse than those of two generations who managed to stay out of poor neighborhoods (over half a standard deviation worse). For technical reasons, these statistical results probably underestimate the real effect of neighborhood poverty on scores.

What appears to have happened is this: Survey respondents in the first generation who grew up in poor neighborhoods ran higher risks than other respondents, on average getting less education and worse jobs, if any, and bearing more physical, social, and psychological problems. Not surprisingly, they tended to end up in poor neighborhoods as adults. When this first generation became parents, they commonly passed on some of their personal disadvantages, such as weak reading skills, to their own children. And they also passed on their places, raising the second generation in poor neighborhoods, which further hampered their children. In this way, Sharkey and Elwert argue, neighborhood problems dragged down (at least) two generations.

No discussion of neighborhood effects can ignore the racial dimension, because the residential segregation of blacks has been and, though reduced, continues to be extreme: 41 percent of the African-American parent-child pairs in the study grew up in poor neighborhoods in both generations; only 2 percent of white families did. Poor whites were less likely to live in concentrated areas of poverty and are more likely to get out of them if they did. The weight of the past is much heavier for some than others.

Claude Fischer is a sociologist at UC Berkeley, is the author of Made in America: A Social History of American Culture and Character. This post originally appeared at Made in America and was re-posted on the Boston Review BR Blog.

Lumbersexuals and White Heteromasculine Pageantry

1b“Lumbersexual” recently entered our cultural lexicon. What it means exactly is still being negotiated. At a basic level, it’s an identity category that relies on a set of stereotypes about regionally specific and classed masculinities. Lumbersexuals are probably best recognized by a set of hirsute bodies and grooming habits. Their attire, bodies, and comportment are presumed to cite stereotypes of lumberjacks in the cultural imaginary. However, combined with the overall cultural portrayal of the lumbersexual, this stereotype set fundamentally creates an aesthetic with a particular subset of men that idealizes a cold weather, rugged, large, hard-bodied, bewhiskered configuration of masculinity.

Similar to hipster masculinity, “lumbersexual” is a classification largely reserved for young, straight, white, and arguably class-privileged men. While some position lumbersexuals as the antithesis of the metrosexual, others understand lumbersexuals as within a spectrum of identity options made available by metrosexuality. Urbandicionary.com defines the lumbersexual as “a sexy man who dresses in denim, leather, and flannel, and has a ruggedly sensual beard.”

One of the key signifiers of the “lumbersexual,” however, is that he is not, in fact, a lumberjack. Like the hipster, the lumbersexual is less of an identity men claim and more of one used to describe them (perhaps, against their wishes). It’s used to mock young, straight, white men for participating in a kind of identity work. Gearjunkie.com describes the identity this way:

Whether the roots of the lumbersexual are a cultural shift toward environmentalism, rebellion against the grind of 9-5 office jobs, or simply recognition that outdoor gear is just more comfortable, functional and durable, the lumbersexual is on the rise (here).

Many aspects of masculinity are “comfortable.” And, men don’t need outdoor gear and lumberjack attire to be comfortable. Lumbersexual has less to do with comfort and more to do with masculinity. It is a practice of masculinization. It’s part of a collection of practices associated with “hybrid masculinities”—categories and identity work practices made available to young, white, heterosexual men that allow them to collect masculine status they might otherwise see themselves (or be seen by others) as lacking. Hybridization offers young, straight, class-privileged white men an avenue to negotiate, compensate, and attempt to control meanings attached to their identities as men. Hybrid configurations of masculinity, like the lumbersexual, accomplish two things at once. They enable young, straight, class-privileged, white men to discursively distance themselves from what they might perceive as something akin to the stigma of privilege. They simultaneously offer a way out of the “emptiness” a great deal of scholarship has discussed as associated with racially, sexually, class-privileged identities (see herehere, and here).

The lumbersexual highlights a series of rival binaries associated with masculinities: rural vs. urban, rugged vs. refined, tidy vs. unkempt. But the lumbersexual is so compelling precisely because, rather than “choosing sides,” this identity attempts to delicately walk the line between these binaries. It’s “delicate” precisely because this is a heteromasculine configuration—falling too far toward one side or the other could call him into question. But, a lumbersexual isn’t a lumberjack just like a metrosexual isn’t gay. Their identity work attempts to establish a connection with identities to which they have no authentic claim by flirting with stereotypes surrounding sets of interests and aesthetics associated with various marginalized and subordinated groups of men. Yet, these collections are largely mythologies. The bristly woodsmen they are ostensibly parroting were, in fact, created for precisely this purpose. As Willa Brown writes,

The archetypal lumberjack—the Paul Bunyanesque hipster naturalist—was an invention of urban journalists and advertisers. He was created not as a portrait of real working-class life, but as a model for middle-class urban men to aspire to, a cure for chronic neurasthenics. He came to life not in the forests of Minnesota, but in the pages of magazines (here).

Perhaps less obviously, however, the lumbersexual is also coopting elements of sexual minority subcultures. If we look through queer lenses we might suggest that lumbersexuals are more similar to metrosexuals than they may acknowledge as many elements of “lumberjack” identities are already connected with configurations of lesbian and gay identities. For instance, lumbersexuals share a lot of common ground with “bear masculinity” (a subculture of gay men defined by larger bodies with lots of hair) and some rural configurations of lesbian identity. Arguably, whether someone is a “bear” or a “lumbersexual” may solely be a question of sexual identity. After all, bear culture emerged to celebrate a queer masculinity, creating symbolic distance from stereotypes of gay masculinities as feminine or effeminate. Lumbersexuals could be read as a similar move in response to metrosexuality.

Lumbersexual masculinity is certainly an illustration that certain groups of young, straight, class-privileged, white men are playing with gender. In the process, however, systems of power and inequality are probably better understood as obscured than challenged. Like the phrase “no homo,” hybrid configurations of masculinity afford young straight men new kinds of flexibility in identities and practice, but don’t challenge relations of power and inequality in any meaningful way.

Cross-posted at Feminist Reflections, Pacific Standard. and Inequality by (Interior) Design. Image borrowed from here.

D’Lane R. Compton, PhD is an associate professor of sociology at the University of New Orleans. Tristan Bridges is a sociologist at the College at Brockport (SUNY).  You can follow them on twitter at @drcompton and @tristanbphd.

The authors would like to thank the Orange Couch of NOLA, Urban Outfitters, the rural (&) queer community, and Andrea Herrera for suggesting we tackle this piece. Additional thanks to C.J. Pascoe and Lisa Wade for advanced reading and comments.

Chart of the Week: 1,500 Estimates Suggest a Higher Minimum Wage Will Have No Effect on Jobs

One of the arguments against an increase in the minimum wage is that it will lead to higher unemployment.  One can make theoretical arguments for and against this proposition.  And, of course, the income gains from an increase in the minimum wage are likely to produce overall benefits for both low wage workers and the economy as a whole even if there is a rise in unemployment.

Economists have tried to estimate the employment effects of a rise in the minimum wage.  As a Vox article describes, two of them, Hristos Doucouliagos and T.D Stanley, looked at almost 1,500 estimates of the effects of minimum wage increases on employment and found that the estimates “clustered right around zero effect, but with more of those estimates showing a slight downward pressure on employment.”

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They concluded, “with sixty-four studies containing approximately fifteen hundred estimates, we have reason to believe that if there is some adverse employment effect from minimum wage rises, it must be of a small and policy-irrelevant magnitude.”

Originally posted at Reports from the Economic Front.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.