Since this whole Occupy, income-inequality conversation took center stage last year, we’ve heard over and over again that the rich [the so-called “One Percent”] pay less in taxes than everyone else despite the fact that their income levels are at all-time highs.
Is this true? A new report from the Congressional Budget Office would say “not exactly.”
“Let’s consider income first. Between 2007 and 2009, after-tax earnings by Americans in the top one percent for income fell 37 percent. On a pre-tax basis they fell 36 percent in the same period,” CNBC’s Robert Frank writes.
“That may sound like a minor haircut for One Percenters compared to people who lost their jobs. But when you take into account federal transfers, assistance and taxes paid, the incomes of the bottom 20 percent grew by 3 percent, while it fell a modest 2 percent for the middle 20 percent,” he adds.
Translation: Since the start of the recession, the wealthy have seen their incomes fall 18 times more than the incomes of the middle class.
Read more here.