20. Lower Tax Rates, Higher Inequality
Note: Change in top income shares and top marginal tax rates since 1960
Source: Emmanuel Saez, Thomas Piketty
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21. US Does Less to Redistribute Income
Source: Janet Gornick, Luxembourg Income Study
21
22. Source: IRS
Average Tax Rate for the Richest 400
19.91%
1997 (Clinton cuts):
- Lowered cap gains
tax from 28% to 20%
- Lowered 15% tax
bracket to 10% 2003 (Bush cuts):
- Lowered cap gains
tax from 20% to 15%
- Lowered dividends
tax from 35% to 15%
2001 (Bush cuts):
- Lowered tax brackets
from 15%, 28, 31, 36,
and 39.6 to 10%, 15,
25, 28, 33, and 35
1993 (Clinton hikes):
- Created 36% and
39.6% tax brackets
for the richest 1.2%
- Created a 35% tax
rate for corporations
23. Inequality Associated with Immobility
Source: Alan Krueger’s Great Gatsby Curve, Corak (2011), CEA estimates
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24. But Mobility Has Not Changed Over Time
Source: “Equality of Opportunity Project” by Raj Chetty , Nathaniel Hendren, Patrick Kline,
Emmanuel Saez and Nicholas Turner
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25. Source: Andrew Berg and Jonathan D. Ostry, IMF
More Inequality May Mean Less Growth
25
26. More Inequality May Mean Less Growth
26
Source: Andrew Berg and Jonathan D. Ostry, IMF
27. Source: OECD Income Distribution and Poverty Database, OECD Economic Outlook Database
Or It May Not
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