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NEW IRS DATA SHOW INCOME INEQUALITY IS AGAIN ON THE RISE

Monday, October 17, 2005

  • By: Isaac Shapiro
  • Organization: Center on Budget and Policy Priorities
New figures from the Internal Revenue Service show that income disparities grew substantially from 2002 to 2003. After adjusting for inflation, the after-tax income of the one percent of households with the highest incomes shot up in 2003 by an average of nearly $49,000 per household while the after-tax incomes of the bottom 75 percent of households fell on average. The term "household" here refers to tax filers with positive amounts of adjusted gross income.
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