How the recession is killing the middle class

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Catherine Rampell examines the “boom-bust-flip phenomenon” and other ways that “the financial crisis has benefited the upper class while brutalizing the middle class.”

“As foreclosures mounted and home prices plummeted…it was disparately the wealthier investors who bought them up at bargain prices… Now, five years after the start of the financial crisis, the housing market has come back, and many of these investors are cashing in.”

“And as wages and employment of the middle class have stagnated or fallen, tax policy has hurt them, too. Sure, the federal government raised the marginal tax rate on high earners earlier this year. But many state and local governments, desperate for revenue in the wake of major budget shortfalls, are raising consumption taxes through general sales taxes… These kinds of taxes and fees are regressive — the less money you make, the higher the share of your income you pay.”

Peter Schorsch is the President of Extensive Enterprises and is the publisher of some of Florida’s most influential new media websites, including SaintPetersBlog.com, FloridaPolitics.com, ContextFlorida.com, and Sunburn, the morning read of what’s hot in Florida politics. SaintPetersBlog has for three years running been ranked by the Washington Post as the best state-based blog in Florida. In addition to his publishing efforts, Peter is a political consultant to several of the state’s largest governmental affairs and public relations firms. Peter lives in St. Petersburg with his wife, Michelle, and their daughter, Ella.