Preparation for State of the Union: Data on Inequality, Mobility, and Redistribution

http://parrottcpa.blogspot.com/2014/01/preparation-for-state-of-union-data-on.html

This is an important part of our capitalist system.  No other system in the history of the world provides upward mobility like capitalism:
  • Mobility: IRS panel data that tracked the same group of taxpayers between 1999 and 2007 showed that Americans can move from one economic group to another fairly quickly.

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 Preparation for State of the Union: Data on Inequality, Mobility, and Redistribution

Preparation for State of the Union: Data on Inequality, Mobility, and Redistribution

 

Official Statistics on Inequality, the Top 1%, and Redistribution

A summary in preparation for the State of the Union

Washington, D.C., January 27, 2014—The State of the Union address is set for tomorrow evening, and the President will reportedly spend much of his time addressing inequality and mobility in America. In preparation for tomorrow’s speech, and in order to help ensure that post-speech discussions are informed by hard data, the nonpartisan Tax Foundation has released a summary of some of the recent work done on inequality and mobility by the Congressional Budget Office and IRS and has included links to the original source material.

Highlights of these reports include:

  • Inequality: CBO data shows that inequality today is slightly higher than the average of the past thirty years, but less that it was during the last two years of the Clinton administration.
  • Progressivity: According to the CBO’s progressivity index, the federal tax code is as progressive today as it has been at any time during the past thirty years.
  • The Top 1%: The Top 1% continues to pay a larger share of the federal income tax burden than the bottom 90 percent combined.
  • Redistribution: Using 2006 data, CBO found that tax and spending policies combined to redistribute $1.2 trillion in income from the top 40 percent of non-elderly households to the bottom 60 percent of non-elderly households.
  • Mobility: IRS panel data that tracked the same group of taxpayers between 1999 and 2007 showed that Americans can move from one economic group to another fairly quickly.

“Undoubtedly, these issues will generate a considerable amount of rhetoric by pundits and politicians on both sides of the aisle,” said Tax Foundation President Scott Hodge. “Much of this rhetoric will not be supported by data or facts and can lead to a misunderstanding of the state of our tax system.”

Full report: Official Statistics on Inequality, the Top 1%, and Redistribution

Media Contact:
Richard Borean
Manager of Communications
Tax Foundation
202-464-5120
borean@taxfoundation.org

The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and local levels.

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About parrottcpa

Parrott & Associates, Certified Public Accountants Specializing In Business & Individual Taxes, Accounting & Payroll Located in Cumming, Georgia http://parrottcpa.com/
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