Thursday, September 25, 2003

Argentina North: The New America

U.S. Income Gap Widening, Study Says
...In 2000, the top 1 percent of American taxpayers had $862,700 each after taxes, on average, more than triple the $286,300 they had, adjusted for inflation, in 1979.

The bottom 40 percent in 2000 had $21,118 each, up 13 percent from their $18,695 average in 1979.

Mr. Shapiro also analyzed the budget office data in tandem with a recently updated study on income by the National Bureau of Economic Research, a nonpartisan, nonprofit research organization in Cambridge, Mass. The bureau study found that in 2000, the top 1 percent income group had the largest share of before-tax income for any year since 1929...

... The center's analysis said the highest income Americans had grown richer from 1979 to 2000 both from gains in income because of economic prosperity and from tax cuts. Huge gains in executive pay were a significant factor, Mr. Shapiro said.

Federal tax burdens for most Americans had declined over the previous two decades, and not risen as some conservative policy experts have asserted, the center said. Congress enacted tax cuts in 2001 and 2003 that were heavily weighted to the top 1 percent, which supporters said would encourage them to invest more to the benefit of all Americans.

The Economist covered this as well. The US is heading towards a South American wealth distribution. Over 20 years the wealthiest Americans tripled their income, the poorest increased by 13%. Cuts in capital gains and estate taxes will accelerate this effect.

Eventually, people will start to notice.

No comments: