ECON 250D1 Lecture Notes - Lecture 12: Tax Rate, Real Income
15 Dec 2019
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Income inequality is rising: cbo congress budget office said government transfer payments (most importantly social. Medicare: changing distribution of data: economists examined, people at all income levels have experienced rising incomes. Top the most, quickest, bottom quintile came second, middle had sluggish growth. Real income: income adjusted for inflation is rising. Income mobility individuals move around within the income distribution over time. Life-cycle pattern of earnings: incomes are lowest for people when they are young, rising to a maximum at about age fifty-five, and then declining slowly until retirement. Lady luck: wealthy will have abnormally high income due to recent good fortune, low income people will be abnormally low at some point: but people will high incomes today will have lower in the future and vice versa. Mis-measurement: federal income tax returns, what is accurate for tax purposes may turn out to be misleading for other purposes.
