New data: Income inequality soared in 2004

[swag]

http://www.cbpp.org/7-10-06inc.htm#_ftn4

Excerpt:

- From 2003 to 2004, the average incomes of the bottom 99 percent of households grew by less than 3 percent, after adjusting for inflation. In contrast, the average incomes of the top one percent of households experienced a jump of almost 17 percent, after adjusting for inflation. (Census data show that real median income fell between 2003 and 2004. Average income is pulled up by gains at the top of the income spectrum; the 3 percent rise among the bottom 99 percent seems to largely reflect gains by households in the top quintile of the income spectrum. In contrast, trends in median income capture the experience of households in the middle of the income spectrum.)

- The top one percent of households garnered 36 percent of the income gains in 2004.

- This disparity produced an exceptional jump in income concentration in 2004. The share of the pre-tax income in the nation that goes to the top one percent of households increased from 17.5 percent in 2003 to 19.5 percent in 2004. Only five times since 1913 (the first year that this data set covers), and only twice since World War II has the top one percent’s share risen by as much in a single year (in percentage point terms). Each percentage point of income is equivalent to $68 billion in 2004.

- The share of total U.S. income that the top one percent of households received in 2004 was greater than the share it received in any prior year since 1929, except for 1999 and 2000.

[RDANGELO]

1. and the next question is - - - What was the affective tax rate of this top

one percent. I'll bet is was less than the rest of us. Which would mean they are getting all the new wealth that is generated and paying a smaller percentage of their income in taxes.

[TalkingDog]

2. Let me summarize:

The richest 1% got a lot richer and the rest of us can just go suck a rope.

Does that just about cover it?



Thanks, I'll send this around.


My favorite Future Famous Dead Artist: KarenParker

[swag]

3. Yeah, the bottom-to-top wealth transfer project is chugging right along.

You've got it covered.