If the tax-returns and capital gains effect were accounted for in the measurement of income inequality, _____.

Question

Quizplus · Accepted Answer

When accounting for tax-returns and capital gains, the top 1% share of income would have less than doubled in value from 1978 to 2007, rather than the more dramatic increases often reported without these considerations. This adjustment provides a more nuanced view of income inequality growth.

If the Tax-Returns and Capital Gains Effect Were Accounted for in the Measurement