Sunday, November 20, 2011

The Top 0.1% Earn Half Of All Capital Gains

The top 0.1% are making about half of all capital gains. According to the Congressional Budget Office more than 80% of the increase in income inequality was the result of an increase in the share of household income from capital gains.

Tax on capital gains had first been reduced in 1978 from 35% to 28%. At the start of the Reagan era, it was reduced again to 20%– raised back to 28% in 1987. In 1997 Clinton agreed to reduce it back to 20%. Bush tax reduction on capital gains from 20% to 15% continued the step-by-step tradition of cutting this tax to create more wealth.

1 comment:

Non Carborundum said...

The percentage of the population that is supposed to be parasitizing the rest is getting narrower. Earlier it was 10%, then 1%. Now it is 0.1%. 0.1% is still one in a thousand. That is not extraordinary. The real insiders, who may number say a thousand want the ire of the general population to be on this much wider band. This sort of propaganda is dangerous and will prepare the grounds for socialism.