Increasing inequality a chimaera?

[bobman0330]

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Cliff's:
An economist is arguing that data reflecting a supposed rapid increase in income inequality is inaccurate. This data is based off of reported taxable income. Not only does this not include things like SS, it's also very responsive to tax rates. Therefore, the reported income of high-earners shot up after the Tax Reform Act, which lowered marginal rates substantially. In addition, more business activities are organizing LLC and S corporations (whose income is reported by the shareholders) than as C corporations (income reported only at the entity level.)