Monday, June 28, 2010

After-Tax Income Distribution

The CBO (via Greg Mankiw):

Growth in after-tax income has been uneven across the income distribution, with upper-income groups seeing more rapid growth than lower-income groups. Much of that increase reflects the pattern of before-tax income growth.
This is rather striking... only the top 5% highest earners (and mainly the top 1% earners) have seen their after-tax real income grow at a faster pace than real GDP per capita.


Adam (a reader) with a key point:
I think the more important conversation, though, is about equality of opportunity, not equality of results. That doesn't lend itself to simple data analysis unfortunately.
Source: CBO