Thursday, March 7, 2013
Market Bullish for Stocks Bearish for Workers Pt4
All of this spells widening inequality in America, because the people who invest the most in the stock market have high incomes. Those who rely most on wages have lower incomes.
Corporate profits are claiming a larger share of national income than at any time in 60 years, while the portion of total income going to employees is near its lowest since 1966.
As my colleague Immanuel Saez recently found, all the economic gains between 2009 and 2011 (the last year for which data were available) went to the richest 1 percent of Americans. The bottom 99 percent has continued to lose ground.
And yet the tax code continues to give preference to capital gains over ordinary income -- a huge boon to investors.