The inequality of income among American taxpayers has grown markedly in recent years, the Congressional Research Service confirmed in a new study of U.S. tax records.
Even as total income grew between 1996 and 2006 (the last year for which individual tax data are available), many Americans were losing ground.
“Inflation-adjusted income actually fell for those in the bottom income quintile (the poorest 20% of tax filers) and almost doubled for the richest 0.1% of tax filers,” the CRS found. “Consequently, income inequality increased between 1996 and 2006.”
The CRS report identified multiple contributors to the growing inequality, including disparate changes in salaries, growth in capital income among high-income taxpayers and modifications of tax policy which exacerbated existing inequalities.
“Earnings inequality has been increasing over the past three decades, and the share of income from capital has increased for high-income tax filers. Furthermore, the 2001 and 2003 Bush tax cuts, while reducing taxes for almost all tax filers, reduced taxes for high-income tax filers to a greater extent than for lower-income tax filers.”
Of these, “Changes in capital gains and dividends were the largest contributor to the increase in the overall income inequality,” the CRS report said. See “Changes in the Distribution of Income Among Tax Filers Between 1996 and 2006: The Role of Labor Income, Capital Income, and Tax Policy,” December 29, 2011.
As the United States continues nuclear modernization on all legs of its nuclear triad through the creation of new variants of warheads, missiles, and delivery platforms, examining the effects of nuclear weapons production on the public is ever more pressing.
“The first rule of government transformation is: there are a lot of rules. And there should be-ish. But we don’t need to wait for permission to rewrite them. Let’s go fix and build some things and show how it’s done.”
To better understand what might drive the way we live, learn, and work in 2050, we’re asking the community to share their expertise and thoughts about how key factors like research and development infrastructure and automation will shape the trajectory of the ecosystem.
Recognizing the power of the national transportation infrastructure expert community and its distributed expertise, ARPA-I took a different route that would instead bring the full collective brainpower to bear around appropriately ambitious ideas.