In 2007, the top 1% of all income earners in the U.S. made 23.5% of all income, more than the entire bottom 50%. The percentage going to the top 1% nearly tripled since the 1970s. From 1980-2005, 80% of all new income created in the U.S. went to the top 1%. Those in the top 1% make at least $380,000/year.
The Times had estimated the threshold for being in the top 1 percent in household income at about $380,000, 7.5 times median household income, using census data from 2008 through 2010. But for net worth, the 1 percent threshold for net worth in the Fed data was nearly $8.4 million, or 69 times the median household’s net holdings of $121,000.
Some readers wondered if the 1 percent by wealth weren’t an entirely different group of people from the 1 percent by income. But there is substantial overlap: the Fed data suggests that about half of the top 1 percent of earners are also among the top 1 percent in the net worth category.