Tuesday, October 26, 2010
David Cay Johnston
has published Scary New Wage Data
, 129 Tax Notes 481 (Oct. 25, 2010):
Now for some really scary breaking news from the latest payroll tax data. ... Total wages, median wages, and average wages all declined, but at the very top, salaries grew more than fivefold. ...
The new data hold important lessons for economic growth and tax policy and take on added meaning when examined in light of tax return data back to 1950. The story the numbers tell is one of a strengthening economic base with income growing fastest at the bottom until, in 1981, we made an abrupt change in tax and economic policy. Since then the base has fared poorly while huge economic gains piled up at the very top, along with much lower tax burdens.
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