Inequality, Poverty, and Taxes

Income distribution in the United States has remained virtually unchanged for onequarter of a century. According to government figures, the poorest 20 percent of all families received 5 percent of the cash income in 1947 and they receive the same share today. By contrast, the richest 5 percent received 17 percent of the cash income in 1947 and 16 percent today. If the various types of noncash income that are omitted from the official figures are added to the distribution, the share going to the rich is vastly increased.

Except for the select few in the top 1 percent of the income distribution, there is little if any progressivity in the tax structure. According to a recent report by the Brookings Institution, the same proportion o...