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Updated U.S. Congressional Budget Office Data Reveal Unprecedented Increase in Inequality

The U.S. Congressional Budget Office recently updated its authoritative data series on household incomes, 1979–2005. The new data reveal a sharp increase in income inequality over the past few years. The increase in income inequality (both pre- and post-tax), as measured by the change in the shares of income going to different income classes, was greater from 2003 to 2005 than over any other two-year period covered by the CBO data.