The biggest driver of income inequality: capital gains

A new report from the Congressional Research Service — the nonpartisan public policy branch of Congress — takes a closer look at the drivers of income inequality between 1996 and 2006, the last period of moderate economic growth before the latest boom-bust cycle.

The report explains that the Bush tax cuts contributed significantly to growing inequality but concludes that income from capital gains and dividends — investments in stocks, bonds, real estate and other assets — mattered even more:

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Thomas Erdbrink 03 Jan, 2012
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Source: http://feeds.washingtonpost.com/click.phdo?i=c05ac7f259101530daf7ae851ca96733
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