"
Just 15 years ago, the 400 richest Americans earned an average of just over $50 million and had an effective tax rate of about 30%. So while the incomes of the 400 richest have increased by seven-fold over that period, their effective tax rate has been cut by over one-third.
Johnston said
decreasing share of taxes paid by the ultra-rich has been driven by government polices that are concentrating wealth at the very top of the income scale. Dating back to the administration of Bill Clinton, Congress has lowered tax rates on the extremely wealthy several times.
"Bill Clinton cut these people's tax rates 8% and Bush added another 5.5% decrease," Johnston said.
Most of the income increases for the super-rich came from cuts in the capital gains tax, he said. Prior to the tax cuts put in place by
former President George W. Bush, the tax rate for top 400 was about
22%. Since those tax cuts, their rate to
16.6% in 2007.
Capital gains --
profits made from inve$tment$ -- represented "66.3% of 2007 income for the top 400, up from 62.8% in 2006 and 36.1% in 1992," Johnston reported.
Since 1992, "the bottom 90% of Americans have seen their incomes rise by 13% in 2009 dollars, compared with an increase of 399% for the top 400."
"
The annual top 400 report was first made public by the Clinton administration, but the
George W. Bush administration
shut down access to
the report," Johnston wrote.
"Its release was resumed a year ago when President Obama took office."
