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Replies to post #236806 on Tornado Alley (PROG)
08/14/15 2:55 PM
The biggest income gap in America is not between the top 1 percent of earners and the 99 percent below them, but rather within the top 1 percent, where the split between the have-mores and the have-a-lot-mores is a fast-widening chasm.
Nearly 1.4 million households are in the top 1 percent income group, a statistical cohort whose members change somewhat from year to year.
But for the first time ever, the IRS offers a close look at the top .001 percent of taxpayers. It shows that incomes in this rarefied air — the top 1,361 households — are soaring while their tax burdens are falling.
The differences in income-growth rates from 2003 to 2012 between the top .001 percent and the rest of the top 1 percent are akin to watching a race to the skies between a helium balloon and a rocket.
I analyzed the report to compare the 99.9 percent in the top 1 percent to the one in a thousand above them. Adjusted for inflation, average incomes for 99.9 percent of those prosperous households rose to almost $1.3 million in 2012, up $424,000 over 2003.
As big as those numbers are, they pale next to the income growth among the one-in-a-thousand households above them on the income ladder. Those 1,361 households enjoyed an average income of $161 million, an increase of $84.6 million.
08/14/15 3:00 PM
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