The rich are getting richer. The rest of us aren’t. It’s become a defining theme of the 21st century.
Except for one thing: The wealthiest Americans faced a bigger tax hike in 2013 than everybody else, and endured a bigger hit to take-home pay as well. That alone won’t do much, if anything, to offset a host of challenges facing lower- and middle-class Americans. But it’s the first big shift in tax and income trends that have favored the wealthy over everybody else for at least a decade.
“This is the result of a conscious policy by the Obama administration to increase tax rates on upper-income taxpayers,” says Ben Harris of the Brookings Institution, a former White House economist under Obama. “This is exactly what was intended to happen.”
The new data come from a Congressional Budget Office report that analyzes income reported to the IRS in 2010 and makes projections about how those numbers are likely to change in 2013. The changes are likely to be significant because of tax hikes thatRead More »from Guess What: The 1 Percent Are Earning Less and Paying More