The new study was performed by Thomas Hungerford of the non-partisan Congressional Research Service. Though the study is not a CRS product, Hungerford’s data is widely cited on both sides; he’s an impeccably objective analyst.
Here’s what Hungerford found: The single greatest driver of income inequality over a recent 15 year period was runaway income from capital gains and dividends.
This, of course, is exactly what the Democrats are arguing in supporting closing loopholes and benefits the richest American’s get in their taxes.
When you look at the economic recovery’s first two years, the top one percent (which by 2011 meant any household making more than about $367,000) captured 121 percent of all pre-tax income gains.
So by all means use the “dream policy” of austerity to keep those rich people in velvet and the rest of us in burlap.
It’s what modern American democracy is all about.