More on the Top 1%
The share of after-tax income of the top 1% by my estimate fell to 11.3% in 2009 from the 17.3% that the CBO reported for 2007… In short, what the Congressional Budget Office presents as increased inequality from 2003 to 2007 was actually evidence that the top 1% of earners report more taxable income when tax rates are reduced on dividends, capital gains and businesses filing under the individual tax code.
If Congress raises top individual tax rates much above the corporate rate, many billions in business income would rapidly vanish from the individual tax returns the CBO uses to measure the income of the top 1%. Small businesses and professionals would revert to reporting most income on corporate tax returns as they did in 1979.
Full article on the perceived inequality in tax rates.
Reynolds is always good. This is a first rate article.
Good piece.
If the market crashes, most of the lost wealth will be from the top 10% of households.
If the market soars, the same dynamics occur.
The top 10% of households own 80% of the stock.
Is this the type of disparity that is beneficial for our long-term growth?
I don’t think so.
Don Levit
Excellent piece.
Everyone likes to use that 2009 number. I would be willing to bet $10,000, oops forgot I was not running for president so make that $100 that the percentage goes back up quite a bit in 2010 and more again in 2011.
Steve