LANSING – The top 1 percent of wage earners in the state captured 82 percent of the income growth from 2009 until 2012, a study released Monday said.
The study, called The Increasingly Unequal States of America: Income Inequality by State, said the top 1 percent in Michigan took home 25 times more than the bottom 99 percent in 2012. The authors, Estelle Sommelier and Mark Price update their analysis of IRS data, the study is published by the Economic Policy Institute for the Economic Analysis and Research Network.
The study said Michigan is one of four states where between 1979 and 2007 only the top 1 percent experienced rising and the average income of the bottom 99 percent fell.
The study notes incomes at all levels declined as a result of the Great Recession, but that income growth has been lopsided since the recovery began.
“This is clear evidence why the economic recovery has not been felt by most families in Michigan — only those who were already doing well,” said Gilda Jacobs, president and CEO of the Michigan League for Public Policy, an EARN affiliate. “Our lawmakers should look to this as they create the next budget. They should resist more tax cuts so that Michigan can help struggling families and grow the skilled workforce we need.’
‘The study said to be in the top 1 percent of the state’s earners, a person must earn $300,750 per year.
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