Income of Top 1% Shot Up 275% Since 1979: CBO
And in the process more than doubled their share of all income
By Kevin Spak, Newser User
Posted Oct 26, 2011 7:45 AM CDT
Updated Oct 26, 2011 7:52 AM CDT
Doctors and medical professionals meet for a show of solidarity with the Occupy Wall Street protests in Zuccotti Park, Sunday, Oct. 23, 2011, in New York.   (AP Photo/John Minchillo)

(Newser) – The top 1% of income earners saw their after-tax income shoot up a whopping 275% between 1979 and 2007, and in the process more than doubled their share of all income, jumping from 8% to 17%, according to a new report from the Congressional Budget Office. The rest of the top 20% saw their income grow 65%, while the middle three-fifths’ income rose 40% and the bottom fifth just 18%. All numbers are adjusted for inflation.

One Democratic congressman hailed the report, which was commissioned by the Senate Finance Committee, as “the latest evidence of the alarming rise in income inequality,” the New York Times reports. All told, the top fifth of earners received more of the nation’s income (53%) than the bottom four-fifths combined. The report cites less redistributive federal policies as a major driver of the gap, as taxes grew less progressive, and federal benefits shifted to programs like Social Security which go to everyone, regardless of income.

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Oct 26, 2011 6:26 PM CDT
So stop sending them your money. No you DON'T 'need' that $200/month smartphone.
Oct 26, 2011 1:00 PM CDT
Income disparity is the ultimate result of REGANOMICS, essentially idealology of Republicans, that if gov't regulations were removed, prosperity would occur, only no one told US just WHO would proper did they? Turns out only the RICH property owners would prosper, none others We're findin' out REGANOMICS "Trickle Down" theory became "Poverty Trickle Up" theory for bulk of workers. Mitch McConnell says it best- "Republican's primary goal is to defeat Obama" meaning JOBS is NOT a primary goal, on the contrar' just make sure there's high unemployment to WIN.2012 BOTH parties are controlled by Corporate America, and it goes way back to why JFK was shot- Corporate America had chosen NIXON to open up the floodgates to SLAVE LABOR in China. Results- Here we are with JOBS gone to China- our only "HOPE" left is to destroy Dollar so we can compete with Chinese wages- How's that? When our local NM factory PRESTO (electric skillets mfr) was boxed up and sent to China, a $14/hr worker told me guy he trained to do his job- made $14/wk, (NOT a typo, that's $14 per WEEK or a factor of 40 Times less pay- how do you compete with that?) To bring that job back, Dollar has to depreciate by a factor of 40X. If that's not Slave Labor, what is? Financial Regulations put in place during Great Depression era have been gutted and Financial Reform IS a JOKE- The Great Recession was triggered on 7July'07 by removal of the UPTICK RULE which req'd a stock to go up BEFORE it could be shorted. Once removed, there was nothing to hold back the investment banks from driving HOUSING into the mud, and our economy into the ditch- to pull out of the stall at least requires reinstating regulations. With Republicans in charge, ain't gonna' happen, because Republicans are hand-maidens of the RICH. Bush said it best- "we've become a nation of the have-nots and have-mores" (no middle class). Democrats are not much better since they are guilty of collusion with wealthy investment banks to make sure everyone gets FREE housing or participates in the runup of housing prices, an artificial economic bubble that has finally burst after decades of runup Google Mortgage Resets to see profile of The Great Recession, a storm that came ashore 2007.5 EYE of storm was 2009.5 to now, rest of storm is upon us and will end Jan 2013 when comc't property mortgage resets peak. Damage done will last 17yrs (2008-2025) the time period over which post war baby boomers retire- First born Fall 1946. Add 62 = Fall 2008 Anything happen then? Stk Mkt CRASH (Can't pump money into stk mkt if retired, but you can withdraw money from it)
Oct 26, 2011 12:38 PM CDT
What reaganomics did for me,2 years ago I had a yacht and a misstress, last year I had a sail boat and a whore, know all I have left is a air tube and a heart on, that's reaganomics.