CBO: Incomes grew three times faster for top earners

CBO: Incomes grew three times faster for top earners
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Incomes for top earners grew at three times the rate of other households over a 36-year period, according to a new report from the nonpartisan Congressional Budget Office.
 
The CBO analyzed household income from 1979 to 2015 and found that while the top 20 percent of earners saw income rise 101 percent during that period, all the remaining 80 percent saw their incomes rise 32 percent.
 
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Even among the richest, the results were skewed, with the top 1 percent seeing a 233 percent increase in income, compared with 74 percent for everyone else in the top fifth.
 
The figures looked at incomes before taxes and government transfers such as tax credits were taken into account. Once redistribution policies were accounted for, the data showed several interesting trends.
 
The post-tax income for the top 20 percent increased even faster than their pre-tax income, rising 103 percent -- 242 percent for the top percentile, and 78 percent for the 81st to 99th percentiles.
 
The redistribution proved helpful to the poorest fifth, who saw income rise 79 percent as opposed to 32 percent before government transfers.
 
Those transfers also helped the middle 60 percent, whose average incomes rose 46 percent, compared to 32 percent before the transfers. That figure was still less than half the post-tax income of the top 20 percent.