Top incomes; Tax data

The top 1% of incomes are increasing rapidly even with low economic growth

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Ihsaan Bassier, Ingrid Woolard on 12 September 2018

We use tax data (which include accurate data for the very rich) to investigate the patterns of income growth over the period 2003 to 2016. Despite the need for inclusive economic growth in the light of extreme inequality, the top 5% of incomes grew at about 5% per year compared to national income growth of 3.7% per year. This divergence is striking in the post-recession period and appears to be partially driven by high growth in income from capital.