Rob Schofield at North Carolina Policy Watch has an excellent post today about the growing gap between the richest and the poorest in our country. Which should come as no surprise to anyone who actually has to work for a living here in North Carolina. Just this year, for example, when our state Senate had the chance to reduce sales taxes that would affect everyone, they chose instead to cut taxes only on the wealthiest.
So what's the net effect of these kinds of policies?
Between 2005 and 2006, the average income (before taxes) of the top 1 percent of households increased by $73,000 (or 7 percent), after adjusting for inflation, while the average income of the bottom 90 percent of households increased by just $20 (or 0.1 percent).