Top 1% Took Record Share of US Income Last Year
Perhaps because they were cashing in stock ahead of new tax rules
By Newser Editors and Wire Services
Posted Sep 10, 2013 4:17 PM CDT
   (Shutterstock)

(Newser) – The pay gap between the richest 1% and the rest of America widened to a record last year. The top 1% of earners collected 19.3% of household income in 2012, their largest share in Internal Revenue Service figures going back a century, according to an analysis of IRS figures by University of California, Berkeley economists.

US income inequality has been growing for almost three decades. But until last year, the top tier's share of pre-tax income hadn't surpassed the 18.7% it reached in 1927, according to an analysis of IRS figures dating to 1913. The economists write that 2012 incomes of the richest Americans might have surged in part because they cashed in stock holdings to avoid higher capital gains taxes that took effect in January.

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Showing 3 of 173 comments
OrneryPup
Sep 12, 2013 2:44 AM CDT
The day of reckoning quickly approaches.
ddhartma
Sep 11, 2013 11:43 PM CDT
Is it that the 1% are gaining at a faster pace, or is it that the lower 99% is falling at a faster pace. As our real unemployment continues to grow (including those that have given up looking for a job), and the number of minimum wage, part-time jobs continues to replace the once full-time, higher paying jobs the 99% just keeps falling away faster from where they were even a few years ago.
Brohan
Sep 11, 2013 8:22 PM CDT
haha, isn't this what the top 1% are supposed to do. What do you want Newser, socialism? Did the bottom 1% take home the least? Basic arithmetic seems so hard for the left to wrap their heads around.