This study examines income mobility of individuals over the past decade (1996 through 2005) using information reported on individual income tax returns.
While many studies have documented the long-term trend of increasing income inequality in the U.S. economy, there has been less focus on the dynamism of the U.S. economy and the opportunity for upward mobility. Comparisons of snapshots of the income distribution at points in time miss this important dimension and can sometimes be misleading.
Economic historian Joseph Schumpeter compared the income distribution to a hotel where some rooms are luxurious, but others are small and shabby. Important aspects of fairness are that those in the small rooms have an opportunity to move to a better one, and that the luxurious rooms are not always occupied by the same people. The frequency with which people move between rooms is a crucial aspect of the trends in income inequality in the United States.
The key findings of this study include:
There was considerable income mobility of individuals in the U.S. economy during the 1996 through 2005 period as over half of taxpayers moved to a different income quintile over this period.
Roughly half of taxpayers who began in the bottom income quintile in 1996 moved up to a higher income group by 2005.
Among those with the very highest incomes in 1996 – the top 1/100 of 1 percent – only 25 percent remained in this group in 2005. Moreover, the median real income of these taxpayers declined over this period.
The degree of mobility among income groups is unchanged from the prior decade (1987 through 1996).
Economic growth resulted in rising incomes for most taxpayers over the period from 1996 to 2005. Median incomes of all taxpayers increased by 24 percent after adjusting for inflation. The real incomes of two-thirds of all taxpayers increased over this period. In addition, the median incomes of those initially in the lower income groups increased more than the median incomes of those initially in the higher income groups.
The degree of mobility in the overall population and movement out of the bottom quintile in this study are similar to the findings of prior research on income mobility.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Democrats measure their success based on how many people receive handouts. Obama is setting records today in every handout catagory. Republicans, more important conservatives measue success based on how many no longer require handouts and can stand on their own 2 feet.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
talking about the poor/middle class, not the top 1%
I know and now we all know you can't read.
Quote:
the top 1/100 of 1 percent – only 25 percent remained in this group in 2005
__________________
John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Roughly half of taxpayers who began in the bottom income quintile in 1996 moved up to a higher income group by 2005
__________________
John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Sal, given that America has the most well educated and most wealthy poor class. You have no ground to stand on.
Republicans have always believed in INDIVIDUAL success. This INDIVIDUAL success breeds a healthy nation. It causes expansion of PRIVATE sector jobs.
It leads to more wealthy person's than anything else.
A better question is what have the Dems EVER done to help the poor middle class to succeed.
Other than increase their taxes, increase their operating expenses, increase regulations that strangle small business.
When you consider the state of the inner cities that have been run by democrat politicians for decades, this has got to be one of the dumbest threads ever started.
C. Davis
__________________ Am I greedy because I don't want to give you what is mine?
or
Are you greedy because you want to take what is not yours?