Publication Date: July 2008
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Chad Stone; Chye-Ching Huang
Research Area: Economics
Keywords: Income diversity; Household income; Financial projections
The shares of the nation’s income flowing to the top 1 percent and top 0.1 percent of households were higher in 2006 than in any year since 1928, according to an analysis of newly released IRS data by economists Thomas Piketty and Emmanuel Saez. Average pre-tax incomes in 2006 jumped by about $60,000 (5.8 percent) for the top 1 percent of households, but just $430 (1.4 percent) for the bottom 90 percent, after adjusting for inflation.