Tuesday, November 1, 2011

CBO data on income inequality

The CBO (see here) published a report recently on income inequality that deserves a read.  One of the key graphs is shown below (click to enlarge).


There is an entire "cottage industry" of people who deny that income disparity has grown at all.  What???  Econbrowser (see here) summarizes as follows (see the graph below).

What is of most interest is (i) real after-tax income of the top 1 percentile has risen about 275%, and (ii) the pre-transfers/pre-tax income share of the top 1% has increased most profoundly.

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