Income Inequality

Income Inequality High and Rising1

- Real incomes have fallen for all but the richest 20 percent of households under the  Bush administration

- The top 5 percent makes nearly as much as the bottom 60 percent

- Over half of all income goes to the top 20 percent, the largest share on record

- Even after taxes, half of all income went to the top 20 percent in 2004

Bush Tax Cuts Benefit Rich Americans Most2

- The Bush tax cuts gave millionaires 114 times the benefits that middle-income families received in 2007

- Families making less than $40,000 annually received a $327 reduction in their 2007 taxes, less than 3 percent the cut for millionaires

Wealth Even Less Equal Than Income3

- The total net worth of the top 1 percent of families was larger than that of the bottom 90 percent in 2004, the last year for which we have data

- The wealthiest 10 percent of households held 70 percent of wealth in 2004

- 12.5 percent of American families have a net worth less than $1,700

[1] Bureau of the Census, Housing and Household Economic Statistics Division Historical Income Tables: Table H-3 -  Mean Household Income Received by Each Fifth and Top 5 Percent, available at http://www.census.gov/hhes/www/income/histinc/h03ar.html;  Bureau of the Census, Housing and Household Economic Statistics Division Historical Income Tables:Table H-2 - Share of Aggregate Income Received by Each Fifth and Top 5 Percent of Households, All Races: 1967 to 2006, available at http://www.census.gov/hhes/www/income/histinc/h02ar.html;  Congressional Budget Office, Historical Effective Tax Rates: 1979 to 2004, Table 1C, December 2006, available at www.cbo.gov/ftpdocs/77xx/doc7718/SupplementalTables.xls
[2] Urban-Brookings Tax Policy Center, Table T06-0274m available at http://www.taxpolicycenter.org/numbers/displayatab.cfm?Docid=1356&DocTypeID=1
 [3] JEC staff calculations using data from Federal Reserve Board, Survey of Consumer Finances, Table 3 2004. available at http://www.federalreserve.gov/PUBS/oss/oss2/2004/scf2004home.html