Trends in the Distribution of Household Income, 1979-2010

Taxation and inequality in the Americas: Changing the fiscal contract?

“…In contrast, in the United States, between 1979 and 2007, households at the very top of the income distribution experienced by far the largest gains in both relative and absolute income, with the pre-tax income of the top 1 percent almost tripling in this period (Harris and Sammartino 2011). Over the last three decades, the income of households in the top quintile (not including the top 1 percent) increased by 65 percent, while income growth was 40 percent for the middle three quintiles and only 18 percent for the lowest quintile.…”

“…Although federal income tax rates have been reduced for everyone (especially the middle class and the poor), the top quintile (especially the top 1 percent) has become so wealthy that the share of tax revenues from personal income taxes remains high (OECD 2012) and the total federal tax burden has been relatively constant over the last 60 years averaging around 18 percent of GDP (JCT 2012). On the other side of the budget, although levels of social spending have increased, a greater proportion is going to the elderly (without regard to need) than to the poor (Harris and Sammartino 2011). There is also concern about a shrinking and declining middle class.…”

Generational Responses to Job Security, Traditional Class Division, and the American Dream

“…The research also found less upward mobilization in the bottom 5 th quartile and less downward mobilization in the top 5 th quartile (Jäntti, 2006). Other researches have found an increase in poverty concentration and an ostentatious increase in wealth gap (Harris et al, 2011;DeNavas-Walt et al, 2012;Kneebone et al, 2011;Deparle, 2012). The Millennials see, hear, or read about these things through the internet and other sources and can't help but think that their world is not as good as it could be.…”

“…On one hand, they came of age during a very segregated time in American history like the Boomers; but on the other hand, they have witnessed the expansion of the middle class and the increase of working wage (Harris et al, 2011;DeNavas-Walt et al, 2012;Deparle, 2012;Isaacs, 2013). Unlike the younger Millennials, the Silent generation did not grow up in a very diverse America.…”

“…In this way, most Millennials most likely responded to the question through a social justice perspective. They believe that America has not fully delivered on its' promise of liberty and justice for all, and recognize that there are still large populations who do not have full equality in America (Harris et al, 2011;DeNavas-Walt et al, 2012;Pew Charitable Trust, 2012;Pew Research Center, 2013;Deparle, 2012;Kneebone et al, 2011). It therefore does not come as a surprise that they are more pessimistic about one's ability to live well in America.…”