My Take on the Middle-Out View

Here is my Wall Street Journal column.  If you’re interested in the of path of incomes year by year, the chart below shows real income growth for the 90% and 10% income groups.

saez real income 1090

The data come from Emanuel Saez’s web site. The data are based on income reported to the IRS and thus may change relative to actual income when tax laws change. Also the data are pre-taxes and pre-transfers. The following chart from CBO shows that the change in income inequality, as measured by the change in the Gini coefficient, is about the same whether or not taxes and transfers are included.CBO Gini changes

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