Earlier today, the European Commission announced that it would require Ireland to collect roughly $14.5 billion in taxes from Apple, after determining that Ireland had granted Apple “illegal tax benefits” under the rules...
- The Tax Policy Blog
- The Gains of the Top 1 Percent Don't Come at the Exp...
The Gains of the Top 1 Percent Don't Come at the Expense of Other Americans
There is a pervasive belief that the gains of successful Americans come at the expense of everyone else. However, the economy is not a fixed pie. The data suggests that the incomes of all Americans are higher than they were twenty years ago after adjusting for inflation, and that everyone’s incomes tend to rise and fall with the business cycle. Between 1987 and 2010, the bottom 50 percent’s real income grew by 25 percent, middle-income Americans’ by 46 percent, and upper-middle-income Americans’ by 56 percent.
Clearly, the incomes of the top 1 percent tend to rise more and fall more during the business cycle. This is because most of their income comes from business and investments. Indeed, the top 1 percent’s income fell 26 percent in real terms during the recession, far more than any other income group.
For more charts like the one below, see the second edition of our chart book, Putting a Face on America's Tax Returns.
Get Email Updates from the Tax Foundation
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.