Advancing a Free Society

The Dreadful Growing Income Gap

Tuesday, June 29, 2010

Using data released on June 17, 2010, by the Congressional Budget Office, the Center on Budget and Policy Priorities released a paper entitled “Income Gaps Between Very Rich and Everyone Else More Than Tripled in Last Three Decades, New Data Show.”

The CBO raw data encompass income, taxes, and after-tax income during 1979-2007 segregated by income categories: top 1%, 5%, 10%, 20%, and the four bottom quintiles. The CBPP compiled chartes comparing the top 1% with the highest, middle, and bottom fifths. The plotted lines show the top 1% enjoyed an increase of 281% in after-tax income during 1979-2007, while the other three quintiles recorded 95%, 25%, and 16% respectively.

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