Figure F
Average middle-class income growth, actual and under two hypothetical scenarios, 1979–2007
| Actual middle-class income | Middle-class incomes rise at (faster) pre-1979 average rate, but “inequality tax” still hits | Middle-class incomes rise at overall average rate (i.e., no “inequality tax”) | |
|---|---|---|---|
| 1979 | $59,763 | $59,763 | $59,763 |
| 1980 | $57,812 | $58,086 | $57,933 |
| 1981 | $57,470 | $57,710 | $57,720 |
| 1982 | $56,418 | $56,627 | $57,536 |
| 1983 | $55,486 | $55,749 | $57,937 |
| 1984 | $58,706 | $59,428 | $60,994 |
| 1985 | $58,835 | $59,696 | $61,943 |
| 1986 | $60,595 | $62,128 | $66,620 |
| 1987 | $59,678 | $61,498 | $64,446 |
| 1988 | $60,477 | $62,708 | $67,229 |
| 1989 | $61,318 | $63,664 | $67,825 |
| 1990 | $61,541 | $63,988 | $67,175 |
| 1991 | $60,625 | $63,267 | $65,569 |
| 1992 | $61,008 | $63,922 | $67,364 |
| 1993 | $61,720 | $64,724 | $67,756 |
| 1994 | $62,103 | $65,241 | $68,569 |
| 1995 | $64,035 | $67,644 | $71,206 |
| 1996 | $64,739 | $68,725 | $73,624 |
| 1997 | $65,863 | $70,305 | $76,446 |
| 1998 | $68,031 | $73,100 | $79,978 |
| 1999 | $69,837 | $75,498 | $83,361 |
| 2000 | $69,623 | $75,447 | $84,715 |
| 2001 | $69,662 | $76,115 | $80,281 |
| 2002 | $68,079 | $74,868 | $76,952 |
| 2003 | $68,263 | $75,246 | $78,174 |
| 2004 | $70,529 | $78,381 | $82,686 |
| 2005 | $71,621 | $80,155 | $86,764 |
| 2006 | $72,232 | $81,195 | $89,389 |
| 2007 | $74,230 | $83,771 | $91,815 |
Note: This figure pertains to the broad middle class, defined here as households in the 20–80th percentiles of the income distribution. Income data are the average across this group and deflated using the CPI-U-RS.
Source: Authors' analysis of Congressional Budget Office (2012), as described in text
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