Census Data Shows Inequality Linked to Education, Not Taxes

Scott Hodge:

There have been a number of reports published recently that purport to show a link between rising inequality and changes in tax policy - especially tax cuts for the so-called rich. The latest installment comes from Berkeley professor Emmanuel Saez, Striking it Richer: The Evolution of Top Incomes in the United States.

Saez and others who write on this issue seem so intent on proving a link between tax policy and inequality that they overlook the major demographic changes that are occurring in America that can contribute to - or at least give the appearance of - rising inequality; a few of these being, differences in education, the rise of dual-earner couples, the aging of our workforce, and increased entrepreneurship.

Today, we will look at the link between education and income. Recent Census data comparing the educational attainment of householders and income shows about as clearly as you can that America's income gap is really an education gap and not the result of tax cuts for the rich.

Related: Dumbing down of state education has made Britain more unequal than 25 years ago; In the name of equality, anti-elitist teachers are betraying the hopes of the young.

Posted by Jim Zellmer at March 18, 2012 4:00 AM
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