The Fairness of Capitalism

INCOME SCORECARD 1979-2004 BOTTOM 60% OF AMERICANS: DOWN 5%60TH-80TH PERCENTILE: UP 2% TOP 5% OF AMERICANS: UP 53% TOP 1% OF AMERICANS: UP 248% DAVID CAY JOHNSTON, NY TIMES - Despite significant gains in 2004, the total income Americans reported to the tax collector that year,adjusted for inflation, was still below its peak in 2000, new government data shows. Reported income totaled $7.044 trillion in2004, the latest year for which data is available, down from more than$7.143 trillion in 2000, new Internal Revenue Service data shows. . .The overall income declines . . . came despite a series of tax cutsthat President Bush and Congressional Republicans promoted as the bestway to stimulate both short and long-term growth after the Internetbubble burst on Wall Street in 2000 and the economy fell into a briefrecession in 2001. . .Very top households, which include about 300,000 Americans, reported significantly more pretax income combined than the poorest 120 million Americans earned in 2004, the data show. This was a sharp change from 1979, the oldest year examined by the I.R.S., when the thin slice at the top received about one-third of the total income of the big group at the bottom.Over all, average incomes rose 27 percent in real terms over thequarter-century from 1979 through 2004. But the gains were narrowlyconcentrated at the top and offset by losses for the bottom 60 percentof Americans, those making less than $38,761 in 2004.The bottom 60 percent of Americans, on average, made less than 95cents in 2004 for each dollar they reported in 1979, analysis of the I.R.S. data shows.The next best-off group, the fifth of Americans on the 60th to 80 thrungs of the income ladder, averaged 2 cents more income in 2004 foreach dollar they earned in 1979.Only those in the top 5 percent had significant gains. The average income of those on the 95th to 99th rungs of the income ladder rose by 53 percent, almost twice the average rate.A third of the entire national increase in reported income went to thetop 1 percent and more than half of that went to the top tenth of 1 percent, whose average incomes soared so much that for each dollar,adjusted for inflation, that they had in 1979 they had $3.48 in 2004.http://tinyurl.com/yaxw9g