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<font size="+1">States Where the Middle Class Is Dying<br>
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<font size="+1"><b><a class="moz-txt-link-freetext" href="http://tinyurl.com/la4xeot">http://tinyurl.com/la4xeot</a></b><br>
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<p>The American economy is by many measures well on the road to full
recovery. The national unemployment rate was 6.2% in 2013, down
from 9.3% in 2009; U.S. gross domestic product grew 5% in the
third quarter of 2014; and the S&P 500 recently reached its
all time high. And yet the middle class, which historically was
the driver of economic growth, is falling behind. The average
income among middle class families shrank by 4.3% between 2009 and
2013, while incomes among the wealthiest 20% of American
households grew by 0.4%.</p>
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<p>Based on average pre-tax income earned by the third quintile, or
the middle 20% of earners in each state, middle class incomes in
California declined the most in the country. Incomes among middle
class Californian households fell by nearly 7% between 2009 and
2013, while income among the state’s fifth quintile, or the top
20% of state earners, grew by 1.3%. Based on an analysis
of household incomes among America’s middle class, these are
the states where the middle class is suffering the most.<br>
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<strong>7. Idaho</strong><br>
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<strong> > Middle income growth 2009-2013:</strong> -4.7%<br>
<strong>> Fifth quintile income growth 2009-2013:</strong> 1.0%<br>
<strong>> Fifth quintile share of income:</strong> 47.8%<br>
<strong>> Middle class household income:</strong> $46,933 (13th
lowest)</p>
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<p>The wealthiest fifth of Idaho households earned $144,885 on
average in 2013. While this was among the lowest incomes in that
cohort, it was also a 1% increase from 2009, more than double the
comparable nationwide growth rate. Average income among Idaho’s
middle earners, on the other hand, fell by 4.7% over that time to
less than $47,000. This was also one of the lower average incomes
in the country. While the income gap is worsening in Idaho, income
is still more evenly distributed compared to most of the nation.
Idaho had nearly the lowest Gini coefficient in 2013. Less than 5%
of Idaho’s labor force participated in a labor union in 2013, less
than half the national figure.<br>
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5. Washington</strong><br>
<strong> > Middle income growth 2009-2013:</strong> -5.0%<br>
><strong> Fifth quintile income growth 2009-2013</strong>: 1.3%<br>
<strong>> Fifth quintile share of income:</strong> 49.2%<br>
<strong>> Middle class household income</strong>: $58,752 (13th
highest)</p>
<p>The average income among middle class households in Washington
fell faster than in most states between 2009 and 2013. Incomes
among the wealthiest 20% of households in the state, however, grew
faster than comparable figures across the nation. In an interview
with 24/7 Wall St., Joe Valenti, an analyst with the Center for
American Progress, argued that Washington’s tax climate may
present an additional burden to those suffering from income
stagnation. Without an an income tax, the state relies more
heavily on its sales tax to generate revenue, for example. A
higher sales tax will often disproportionately affect lower-income
residents who not only tend to consume more as a percentage of
their income, but also may have less opportunities to drive across
state lines to take advantage of a lower tax rate. Nearly 20% of
Washington’s workforce was part of a union in 2013, one of the
highest rates. Yet, this did not appear to have an effect on the
distribution of income in Washington.<br>
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Ken<br>
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