Sunday, July 25, 2010
Quiggin on the "Inequality Boom"
John Quiggin, writing at the Crooked Timber blog (here), has a thoughtful post on increasing economic inequality in the US. Based on Congressional Budget Office data from 1979-2005 he shows that the highest income earners benefited significantly, but the bottom 80% - yes, 80% - have seen their real, post-tax incomes decline. Even more interesting is his finding that the federal income tax has become virtually proportional, which means that it is not redistributing income from rich to poor (or vice versa).