Richest get even richer

The wealthiest Americans took a record slice of the income pie in 2005, according to an IRS report.
OCT 12, 2007
The wealthiest Americans took a record slice of the income pie in 2005, a bigger helping than in the late-1990s bull market. A new report from the Internal Revenue Service revealed that two years ago, the top 1% of earners took home 21.2% of the adjusted gross income share in the nation. That is up from 19% from 2004, and it also beats the previous high of 20.8% in 2000. These data came from a sample of tax returns and measure “adjusted gross income,” the amount of income left after certain deductions. The stats reveal a widening wealth gap, as the bottom 50% of earners brought in just 12.83%of the adjusted gross income share in 2005, a new low. That’s down slightly from 13.42% in 2004. Even in the year when the wealthiest Americans had the most money, the bottom half of earners accounted for 12.99% of the income share – now the second lowest amount in the 21 years the IRS has been tracking the data. On the other hand, the wealthiest Americans are also paying even more taxes than before: Their share reached a record high, jumping to 39.38% from 36.89% in 2004. Meanwhile, the bottom 50% of the returns covered 3.07% of all income tax, down from 3.30% in 2004.

Latest News

How AI search aided scam from phony NFL player, fake financial advisor
How AI search aided scam from phony NFL player, fake financial advisor

Daejon Love and Taylor Chan's $1.3 million romance fraud scheme exposes how AI search engines can be manipulated by fabricated online identities

Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client
Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client

“It was a third party scam,” said the attorney representing the claimants.

RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust
RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust

Meanwhile, &Partners draws another Commonwealth practice, and Wealthcare welcomes a $550 million planning practice in the Northeast.

CogniCor adds wealthtech veterans to board in renewed RIA push
CogniCor adds wealthtech veterans to board in renewed RIA push

Palo Alto AI platform recruits RIA and fintech leaders as industry data show AI adoption reshaping advisor staffing.

Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico
Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico

Meanwhile, Raymond James, Wedbush, and LPL recruited veteran advisors from across Texas, North Carolina, and California.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income