The IRS released data on the 1% of people making the most income, and learned that it was overly simplistic to only report on the 1% previously. By reporting on the top 0.1%, 0.01%, and 0.001% they found that tax rates are regressive at the highest levels of income. The line for the 1% is when a person makes over $434,682 per year. The greatest effects are noticeable above that. Far fewer people reach those higher levels, but there are thousands who make millions. The 0.1% make $2,161,175. The top 0.01% make $12,104,014 (more than $1,000,000 a month). The top 0.001% make $62,068,187. The more a person makes the lower their effective taxes to the point that they are paying less than middle income earners.
Unfortunately, for the middle income earners,
“middle class families have seen their earning power decline significantly” – Think Progress
Without a systemic change, the income inequality, and subsequent wealth inequality, is expected to continue to increase, which increases the divisions within the American populace.
(Click on the very tall graphic for the link.)
Note: The article is from June 2015, so “new” is a relative term.
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