Saturday, June 11, 2016

The rich get richer

The last 35 years saw the richest Americans’ income jump 10 times higher than the other 99 percent.

“Market income in 2013 for households in the top 1 percent was 188 percent higher than it was in 1979,” the Congressional Budget Office said in the report released Wednesday. “For households in the bottom four income quintiles, market income was 18 percent higher in 2013 than it was in 1979.”

A typical American household earned market income of $86,000 in 2013. After adding another $14,000 in government benefits per household, their pretax income reached $100,000. In that scenario, consumers kept $80,000 annually after paying 20 percent in taxes.

In the meantime, in 2013, America’s richest “one percent,” made up of 1.2 million households across the country, earned on average nearly $1.6 million annually per household. The CBO estimates that in the last 35 years, after-tax income of those richest households saw at least 3 percent growth each year. Thus, in 2013, their income after paying federal taxes was 192 percent higher than it was in 1979.

In comparison, over the same period, households “at the bottom” saw their income grow only 1 percent per year on average, bringing their earnings up only 46 percent during those 35 years.

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