It is generally recognized that, in the absence of policy changes, the U.S. faces a long-term fiscal challenge. But, as a result of the 2007-09 recession, the U.S. is currently facing an unemployment crisis — the unemployment has been above or near 8 percent since February 2009. Furthermore,...

This paper examines changes in after-tax income inequality among tax filers between 1991 and 2006. In particular, how changes in wages, capital income, and tax policy contribute to changes in income inequality is investigated. To examine the role of these three possible contributors to the...

Income inequality has been increasing in the United States over the past 25 years. Many argue that rising inequality is not a serious issue because income or social mobility reduces inequality and increases well-being. These observers point to studies showing considerable upward mobility. This...