Posts Tagged ‘income concentration’

Corporate Tax Cuts Increase Income Inequality

North Star would like to thank Professor Louis Johnston of the College of Saint Benedict/Saint John’s University for critiquing earlier drafts of this article.   Conservatives typically argue that the benefit of corporate tax cuts will trickle down to workers in the form of higher wages. New research published this month indicate that workers do…

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Estate Taxes in the Age of Inequality

Income and wealth inequality has accelerated in recent decades; at the same time, reliance on the progressive estate tax as a state revenue source has waned. Certainly, the decline of the estate tax is not the only—or even a primary—cause for the increase in inequality, but it is an effective remedy for offsetting some of…

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Income Inequality, Tax Regressivity are Worse Than We Thought

There has long been convincing evidence—both at the state and national levels—that income inequality has accelerated in recent decades, with an increasing share of wealth concentrated in fewer and fewer hands. Extreme income inequality—coupled with stagnant or declining real wages—undermines a consumer economy, since working families are less able to purchase the goods and services…

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Income Inequality Continues to Escalate

Last summer, two separate North Star articles (published on July 18 and August 29) explored the growth in U.S. and Minnesota income inequality since the 1970s and 1980s. While recent data from the U.S. Census Bureau showed significant income growth in 2015, income inequality has continued to increase since the beginning of the Great Recession…

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Post-Great Recession, Rich Get Richer and Poor Get Poorer

We’ve got some good news and some bad news. The good news is that average U.S. and Minnesota incomes increased from 2014 to 2015. Further good news for Minnesotans is that income growth among each of the Gopher State’s six income groups outperformed the corresponding national growth rates, as described in the preceding North Star…

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Income Inequality on Steroids: The Top of the Top 1%

Minnesota is no exception to the national trend of rising income inequality. Previous installments in this series have shown the concentration of income at the top of Minnesota’s income spectrum and the growing gap between the top one percent and middle-income households, especially after adjusting for inflation. However, to fully understand the extent to which…

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Rich Get Richer, Middle Class Not So Lucky

The growing income gap between the top one percent and the less well-off has been documented many times, most recently in two North Star articles. The first of these articles used data from Minnesota Tax Incidence Studies (MTIS) spanning the last quarter century to demonstrate the increased concentration at the top of Minnesota’s income spectrum,…

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Growing Income Gap Between the Top and the Middle

Information from the biennial Minnesota Tax Incidence Study (MTIS) confirms in greater detail what was already known in a broad sense—income inequality in Minnesota is increasing over time. Using data from the thirteen published Incidence Studies, part 1 of this series documented the increased concentration of income among the five percent of households with the…

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A Closer Look at Growing Income Inequality

Increasing income inequality is not only offensive from a fairness perspective, but is also a persistent cause of lackluster economic growth. Last month, a North Star article documented the growing extent of income inequality in Minnesota. Data from the long series of Minnesota Tax Incidence Studies (MTIS) allows us to examine trends in Minnesota income…

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