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CT Income Inequality 2nd Highest in the Nation

Connecticut Voices for Children, Connecticut Association for Human Services
 

Inequality in Connecticut has skyrocketed from 1977 to 2007 as the gap between the richest and poorest fifths, which ranked 46th in 1977-79 grew to 3rd worst by 2005-07. In 1977-79, the gap in Connecticut between the richest fifth and middle fifth was 42nd largest among the states; by 2005-07 it had grown to 7th worst.

This and further data and analysis on CT’s growing income inequality comes from a new report – Pulling Apart: Connecticut Income Inequality 1977 to Present – written by Connecticut Voices for Children in collaboration with the Connecticut Association for Human Services (CAHS) released a new report.

The report shows that, without a doubt, Connecticut now has one of the highest income gaps in the entire country, second only to New York. This vast and growing inequality presents many challenges to the economic and social future of the state. The report lists a number of ways this trend can be reversed such as revising the state and local tax code to be fairer, shoring up the unemployment insurance system, and strengthening programs that preserve and expand opportunity.

According to the report, not only is there a large disparity between incomes in the 90% income percentiles and the 10% income percentiles, there is a large gap between incomes in the 10% income percentiles and the 1% income percentiles. The top 1% incomes now account for almost 30% of all Connecticut adjusted gross income.

Adjusting for inflation, average incomes among the top fifth of households more than doubled from 1977-79 to 2005-07, from $107,554 to $226,237—a gain of $118,682, or 110%. Those in the middle fifth saw their incomes rise $22,190 (40%), while those in the bottom fifth lost $981 (-4%) over the 30-year period.

Read Connecticut Voices for Children Blog about Inequality in Connecticut

Click here to read Pulling Apart: Connecticut income Inequality 1977 to Present. 

Read the Center on Budget and Policy Report – Pulling Apart: a State by State Analysis of Income Trends

 
 

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