Income inequality persists

The growing disparity between the richest and poorest in the United States continues to increase, reaching levels that could possibly be worse than in 1929, before the Great Depression.


As The Wall Street Journal reports:

In a new sign of increasing inequality in the U.S., the richest 1% of Americans in 2006 garnered the highest share of the nation’s adjusted gross income for two decades, and possibly the highest since 1929, according to Internal Revenue Service data.




Meanwhile, the average tax rate of the wealthiest 1% fell to its lowest level in at least 18 years. The group’s share of the tax burden has risen, though not as quickly as its share of income.


The figures are from the IRS’s income-statistics division and were posted on the agency’s Web site last week. The 2006 data are the most recent available.


As the article explains, economic experts say the lower average tax rate for the rich is in part thanks to Bush-era tax cuts and the global economy.

Erin Rosa was born in Spain and raised in Colorado Springs. She is a freelance writer currently living in Denver. Rosa's work has been featured in a variety of news outlets including the Huffington Post, Democracy Now!, and the Rocky Mountain Chronicle, an alternative-weekly in Northern Colorado where she worked as a columnist covering the state legislature. Rosa has received awards from the Society of Professional Journalists for her reporting on lobbying and woman's health issues. She was also tapped with a rare honorable mention award by the Newspaper Guild-CWA's David S. Barr Award in 2008--only the second such honor conferred in its nine-year history--for her investigative series covering the federal government's Supermax prison in the state. Rosa covers the labor community, corrections, immigration and government transparency matters. She can be reached at erosa@www.coloradoindependent.com.

Comments are closed.