Income Distribution in the United States

Income
Distribution in
the United States

$0 $50,000 $100,000 $150,000 $200,000 $250,000

Visualizing Economics Visit www.visualizingeconomics.com
to view more examples
Making the Invisible Hand Visible
1913–2004 United States
Av e r a g e I n c o m e
Includes Capital gains
Does not include Capital gains

Income
per Tax Unit
2004 US$
&

bust
om
$50,000

k bo
1987
1973-74

stoc
Stock market crash
1979
Arab oil embargo

com
Iranian oil embargo Iraq

Dot
Wa r
$40,000 G
ar u
W
m l
oo f
am
b
r II
Wa n W
et
ld
or Vi a
$30,000
t-W r
s
Po
rn
Wa rea

1929
Ko

Stock market crash
$20,000
n
io
s World
Gr

es
r
ea

War II
ep
World
t

D
War I
$10,000
Woodrow Calvin Franklin Dwight Lyndon Gerald Ronald Bill
Wilson Coolidge Roosevelt Eisenhower Johnson Ford Reagan Clinton
Warden Herbert Harry John Richard Jimmy George George W.
Hoover Truman Kennedy Nixon Carter Bush Bush
Harding
$0
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
Average Income Prof. Emmanuel Saez’s Web site, University of California, Berkeley, http://elsa.berkeley.edu/~saez/TabFig2004prel.xls (accessed August 25, 2006)

Fa m i l y I n c o m e b y N u m b e r o f E a r n e r s
(Median 2004 dollars)

Recessions are represented by the gray bars. Each bar starts at the peak of a business cycle and ends at the trough
$120,000
G
World Ir a q
Korean u
am War
Vie tn
War II l
War Wa r
f
W
$100,000 a $100,000
r

$85,178
$80,000

$71,246

4 Earners
$60,000

3 Earners
$40,000
$37,618

2 Earners
$22,349
$20,000 1 Earner

No Earners
$0
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
Woodrow Calvin Dwight Lyndon Gerald Ronald Bill
Franklin
Wilson Coolidge Eisenhower Johnson Ford Reagan Clinton
Roosevelt

Harding Hoover Truman Kennedy Nixon Carter Bush Bush

2005 United States
Income Distribution (Bottom 98%)
Each equals 500,000 households

112,363,000 households below $250,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000

Median Average (Mean) To t a l 1 1 4 , 3 8 4 , 0 0 0 households
$46,326 $63,344

20% 40% 60% 80% 95% 98%
less than less than less than less than less than less than
$19,178 $36,000 $57,660 $91,705 $166,000 $250,000

2005 United States
Income Distribution (Less than $5 million)

The Bottom 99.99% (Income less than 5 million)

99.99% of
98% of
make less than
make less than
$5,000,000
$250,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000

$0 $250,000 $5,000,000
$1,200,000

The Bottom 98% (Income less than 250 thousand)

98% of
make less than
$250,000

112,363,000 households below $250,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000
$250,000
$0


2005 United States
T h e To p 1 0 B e s t - P a i d :
C E O s , C e l e b r i t i e s , a n d H e d g e Fu n d M a n a g e r s

Income less than $1.5 billion

99.99% of
make less than
$5,000,000

In 2000, you needed $86 million to make the top 400 highest incomes reported to the IRS.

CEOs
Celebrities
Hedge Fund Managers
$0 $50,000,000 $500,000,000 $1,000,000,000 $1,500,000,000

The Bottom 99.99% (Income less than 5 million)

99.99% of
98% of
make less than
make less than
$5,000,000
$250,000

$0 $50,000 $100,000 $150,000 $200,000 $250,000

$5,000,000
$0 $250,000

Income/GDP Ratio
(excluding capital gains)

45% Share of GDP going to bottom 90%

40%

35%
G
u
World Iraq
l
Korean
am War
30% Vie tn
War II f Wa r
War

W
a
25% r

20%
Share of GDP going to top 10%
In 2004:
15%
bottom 90% < $92,315 < top 10%

10%

Woodrow Calvin Franklin Dwight Lyndon Gerald Ronald Bill
5% Wilson Coolidge Roosevelt Eisenhower Johnson Ford Reagan Clinton
Hoover Truman Kennedy Nixon Carter Bush Bush
Harding
0%
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004


Share of GDP for bottom 99th, 95th, and 90th
( Ta x U n i t s i n c l u d e c a p i t a l g a i n s )

Recessions are represented by the gray bars. Each bar starts at the peak of a business cycle and ends at the trough
60%
Share of GDP going
to bottom 99th
income less than $316,806
in 2004
50%
Share of GDP going to 47%
bottom 95th
Income less than $131,443
in 2004
40%
38%
Share of GDP going to
bottom 90th
Income less than $95,386
31%
in 2004 G
30% u
l
f
World Ir a q
Korean
am War
Vie tn
War II War W Wa r
a
20% r

10%

0%
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
Franklin
Roosevelt


1913-2004 United States
To p 0 . 1 Pe r c e n t c o m p a r e d t o To p M a r g i n a l Ta x R a t e

9.9%
94%

8.6%

6.9%
Top Marginal Tax Rate

35%

7%
Percentage of Income going to the Top 0.1 Percent
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004

The cut off for the Top 0.1 Percent in 2004:

U.S. Top 0.1 Percent
$0 $50,000 $100,000 $150,000 $200,000 $250,000

$0 $1.1 million

1 9 1 3 - 2 0 0 4 U n i t e d S t a t e s , C a n a d a , U n i t e d K i n g d o m , Fr a n c e , J a p a n
Pe r c e n t a g e o f I n c o m e g o i n g t o t h e To p 0 . 1 Pe r c e n t
World War I World War II

8% U.S. Top 0.1 Percent
6.9% United States
$0 $50,000 $100,000 $150,000 $200,000 $250,000

$0 $1.1 million
5.2% Canada

0%

8%
6.9% United States

3.3% United Kingdom

0%

8%
6.9% United States

2.0% France
0%

8%

6.9% United States

2.2% Japan

0%
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
94%
Top Marginal Tax Rate for the United States
35%
7%


W h a t % o f t h e To p 0 . 0 1 ’s I n c o m e c o m e s f r o m C a p i t a l G a i n s ?
World War II
World War I
100% Top 0.01 determined by income that
excludes capital gains.

55%

18% Capital Gains

4%
1917 1928 1939 1950 1961 1972 1983 1994 2005
U.S. Top 0.01 Percent (excluding capital gains)
$0 $50,000 $100,000 $150,000 $200,000 $250,000

The cut off for the Top 0.01 Percent in 2005: $5.9 million
$0

U.S. Top 0.01 Percent (including capital gains)
$0 $50,000 $100,000 $150,000 $200,000 $250,000

The cut off for the Top 0.01 Percent in 2005:
$0 $9.5 million

100% Top 0.01 determined by income that
85%
includes capital gains.

51% Capital Gains

14%

1917 1928 1939 1950 1961 1972 1983 1994 2005


S o u r c e s o f I n c o m e o f t h e To p 0 . 0 1 Pe r c e n t
Income Sources including Capital Gains

Wage Income defined as wages and salaries and pensions (and
includes bonuses, stock-option exercises, etc.)
34%
5%

Entrepreneurial Income defined as profits from S-Corporations (entities
28% not subject to corporate taxes and taxed only at
23%
the individual level) plus profits from Partnerships
plus profits from sole proprietorship businesses
(Schedule C income) plus farm income

Capital Gains
18%
4%

55%
Dividend Income
11%

Interest Income
9% 8%

Rental Income
3%
4%
1917 1928 1939 1950 1961 1972 1983 1994 2005

U.S. Top 0.01 Percent (calculated excluding capital gains)
$0 $50,000 $100,000 $150,000 $200,000 $250,000

$0


Income Sources including Capital Gains

100 Rental Income 3%
Interest Income 8%
90
Dividend Income 11%
80

Capital Gains 18%
70

60 Entrepreneurial
Income 28%
50 defined as profits from S-Cor-
porations (entities not subject
to corporate taxes and taxed
40
only at the individual level)
plus profits from Partnerships
30 plus profits from sole propri-
etorship businesses (Schedule
C income) plus farm income
20
Wage Income 34%
10 defined as wages and salaries and
pensions (and includes bonuses,
stock-option exercises, etc.)
0
1917 1928 1939 1950 1961 1972 1983 1994 2005

$0 $50,000 $100,000 $150,000 $200,000 $250,000

$0


I n c o m e S o u r c e s E xc l u d i n g C a p i t a l G a i n s

Wage Income defined as wages and salaries and pensions (and
includes bonuses, stock-option exercises, etc.)
49%

14%

Entrepreneurial Income defined as profits from S-Corporations (entities
36% not subject to corporate taxes and taxed only at
31% the individual level) plus profits from Partnerships
plus profits from sole proprietorship businesses
(Schedule C income) plus farm income

40%
Dividend Income
7%

Interest Income
10% 6%

Rental Income
3%
5%
1917 1928 1939 1950 1961 1972 1983 1994 2005

$0 $50,000 $100,000 $150,000 $200,000 $250,000

$0

Income

Income
2005 US$
BLS GDP per
$90,000 Employed person

oom
&b
kb
ust
toc
$80,000 CBO

ms
1987 Average Household

t co
Stock market crash

Do
Census
1979
$70,000 Average Family
Iranian oil embargo
1973-74 Census
Arab oil embargo Average Household
$60,000
Census
Median Family
Seaz Average Tax
$50,000 Units with cap gains
Census Median
Household
Seaz Average Tax Units
without cap gains
$40,000
G
u
ar l
W
$30,000
m f
1929
na Iraq
Stock market crash
et
War
Vi
W
$20,000
rn

a
Wa rea

r
Ko

n World
World sio
$10,000
es War II
Gr

War I pr
ea

De
t

$0
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004
Franklin
Roosevelt


Po p u l a t i o n

300,000,000 Census Population

250,000,000

200,000,000

BLS Civilian
Labor Force
150,000,000
Saez Tax Units
BLS Employment
Seaz Tax Returns
Census Household
100,000,000

Census Family

50,000,000

Dept of Defense
Armed Services
0
1914 1924 1934 1944 1954 1964 1974 1984 1994 2004

Po p u l a t i o n R a t i o s

Pe r Ta x U n i t Pe r H o u s e h o l d
Single, married filling jointly, or head of household All the people who occupy a housing unit as
their usual place of residence

4.5
4.0

3.5 # of people
per Household
3.0 # of people
per Tax Unit
2.5

2.0
# of employed people
# of employed people
per Household
1.5 per Tax Unit
1.0

0.5

0.0
1914 1934 1954 1974 1994 1914 1934 1954 1974 1994

2005 United States
Income Distribution (Bottom 98%)
Logarithmic Scale for Income

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0
$100 $1,000 $10,000 $100,000 $250,000

Median Average (Mean)
To t a l 1 1 4 , 3 8 4 , 0 0 0 households
$46,326 $63,344

20% 40% 60% 80% 95% 98%
less than less than less than less than less than less than
$19,178 $36,000 $57,660 $91,705 $166,000 $250,000


Gross Domestic Product by Industry
Va l u e A d d e d ; Pe r c e n t a g e o f G D P

Losers ranked by % of GDP in 2005
Wi n n e r s r a n k e d b y % o f G D P i n 2 0 0 5
1975 1980 1985 1990 1995 2000 2005 1975 1980 1985 1990 1995 2000 2005

Finance, Insurance, 20.4
Real Estate, Leasing
Government
15.1 15.1
12.6

20.6
Manufacture
Professional and 12.1
11.7
Business Services
5.7

Educational Services, Retail Trade
Health Care, Social Assistance 7.8 7.8
6.6
4.5

Whole Sale Trade
Construction 7.0
6.0
4.9
4.6

Transportation,
Information Warehousing
4.5
3.4
2.8
3.6

Arts, Entertainment, Recreation,
Accommodation, Food Services Utilities
3.6
2.8 2.0
2.3

Other Services Mining
1.9
2.3 2.1
2.3

Agriculture, Forestry,
Fishing, Hunting
3.1 1.0


Real Gross National Income per Capita
In 2000 US dollars

$40,000
$38,200

oom
2006 Est

&b
kb
ust
toc
Iraq
$35,000

ms
War

t co
1987

Do
Stock market crash
$30,000
1979
G
Iranian oil embargo
u
$25,000 1973-74
l
Arab oil embargo
f

$20,000 W
a
ar r
W
m
$15,000
na
et
Vi
1929
rn
Wa rea

Stock market crash
$10,000
Ko

World
War II
$7,100
1929 n
$5,000 World sio
es
Gr

War I pr
ea

De
t

$0
1916 1926 1936 1946 1956 1966 1976 1986 1996 2006
Franklin
Roosevelt



Av e r a g e H o u r l y E a r n i n g s
of production and nonsuper visor y workers

$16.76
$16.24
Adjusted for Inflation using CPI-W (2005 dollars) $15.49

Not Adjusted for Inflation (Constant dollars) $2.53

$16.31
$16.24
Adjusted for Inflation using CPI-W (2005 dollars) $15.49
Adjusted for Inflation using PCE Deflator (2005 dollars) $12.96

2005 Earning plus Benefits $19.57
1975 Earning plus Benefits $16.95 $16.31
Adjusted for Inflation using PCE Deflator (2005 dollars) $12.96

Recessions: each bar starts at the peak of a business cycle and ends at the trough

Lyndon Gerald Ronald Bill
Johnson Ford Reagan Clinton

Richard Jimmy George George W.
Nixon Carter Bush Bush

Goto
VisualizingEconomics.com
to view more graphs

Income Distribution in the United States

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (13)

En vedette

En vedette (9)

Dernier

Dernier (20)

Income Distribution in the United States