The average income reported on tax returns in 2005 was $55,238, nearly 1 percent less than the $55,714 average in 2000, after adjusting for inflation, the New York Times reported. The White House attributed the income drop after 2000 to the Internet stock bubble burst. Still, the wealthy have done OK: The number of taxpayers earning more than $1 million increased 26 percent from 2000 to 2005, and that group accounted for nearly 47 percent of the total income gains in 2005.
“The fact that average incomes remained lower in 2005 than five years earlier helps explain why so many Americans report feeling economic stress despite overall growth in the economy,” the Times reported. “Many Americans are also paying a larger share of their health care costs and have had their retirement benefits reduced, adding to their out-of-pocket costs.”
Posted by Phillip Brownlee
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