e_legs

Income Inequality: Income of 1.2m on top = Income of 45.5m on bottom

In class warfare, Culture of Corruption, Economic Justice, Election 2008, Laws & Regulation, Progressive Politics, US Politics on February 28, 2007 at 10:39 am

In case you need a good pick-me-up with your cup o’ joe, here are some tid-bits the Wall Street Journal pulled out from a recent CBO report. Nothing too new, but good to stay motivated:

…Before taxes, the bottom 40% of U.S. households got 13% of the nation’s income in 2004; after federal taxes of all sorts they got about 15%, according to the Congressional Budget Office’s latest estimates. Because of the Earned Income Tax Credit, a cash bonus the government offers low-wage workers, many Americans at the bottom get money from the government, rather than having to pay income taxes; they still face payroll taxes on their wages.

Before taxes, the top 1% got about 16% of income; after taxes they ended up with 14%. (Yes, you read that right: The 1.2 million best-off households got about as much income, even after taxes, as the 45.5 million worst-off.) That top 1%, by the way, pays about a quarter of all federal taxes.

…The Treasury benefits more when CEOs get bigger raises than when ordinary workers gain, and that, along with the buoyant economy, is a big reason for today’s surge in federal revenue.

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