Forum Post: Hello Wall Street and K Street

Five ways income inequality happened, and will continue

http://www.reuters.com/article/2011/10/28/us-usa-wallstreet-cboreport-idUSTRE79R3XR20111028

By John Wasik

Fri Oct 28, 2011 11:40am EDT

(Reuters) - As if on cue for an Occupy Wall Street commercial, the latest Congressional Budget Office report highlighted the large crevasse between the upper 1 percent of U.S. households and the rest of us.

When it comes to income inequality, this is what U.S. politicians should be digesting now. While it's hardly a major revelation that for the top 1 percent of earners real after-tax income rose 275 percent between 1979 and 2007, the top 20 percent made more in after-tax income than the remaining 80 percent. That's quite a difference since the lowest-income group's median income only rose 18 percent.

Income inequality couldn't be more of a mainstream issue as some 70 percent of Americans surveyed want wealth shared more equally.

The reasons for ... [cannot post the whole thing, it says 'content too long'. go to the article and read it at Reuters, don't forget the comments, especially this one:

Comment: You could also add that the rich don’t depend on 401 accounts for retirement income as do the middle class. 401 deferred retirement account income is taxed at ordinary income tax rates while stock appreciation or capital gains and dividends, which the rich use for retirement, are taxed at 15%.