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.
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.