In America, the top one-tenth of one percent of earners makes about the same money per year collectively as the millions of Americans in the bottom fifty percent combined. This is putting a tight squeeze on the middle class, while leaving millions of others in the cold. This week, David Brancaccio talks with Pulitzer prize-winning financial reporter David Cay Johnston, as well as author and advocate Beth Shuman about the state of our country’s vast income divide and how it’s hurting those just trying to make ends meet.
2005 Incomes, on Average, Still Below 2000 Peak
Source: David Cay Johnston, New York Times, August 21, 2007
New IRS Data Pegs Cost of Special Low Tax Rates on Capital Gains
and Dividends at $92 Billion in 2005 Alone -Three-Quarters of the Tax Cuts Went to Best-Off 0.6 Percent
Source: Steve Wamhoff, Citizens for Tax Justice, August 10, 2007