With all the talk about what to do with the Bush tax cuts — and whether they should be extended for no one, everyone, or everyone under a certain income cutoff — we thought it made sense to check in on how much Americans actually make.
Roughly $50,000. That's how much the median households makes in income and benefits per year. In other words, half of American households made less than $50,000 and half made more.
A household, as the Census defines it, consists of all the people who occupy one house or apartment. That means anyone living under the same roof and includes families, but also roommates sharing an apartment or people living on their own. The Census counted 114.6 million households in 2010, the most recent year for which it has published data.
The Census Bureau has some useful data on that subject. Here's a breakdown of how many households made different amounts in 2010:
Source: Census Bureau
Credit: Lam Thuy Vo / NPR
Some takeaways: Almost one household out of every four (24.9 percent) makes less than $25,000 a year. About one in three households (30.1 percent) made between $50,000 and $100,000. One in five households (19.9 percent) made more than $100,000 a year.
The income part of the data excludes dividends, capital gains and income from real estate, like rent payments. The benefits part includes food stamps or subsidized housing. Many of these government subsidies are targeted at poorer households.
"Government transfers account for a much larger fraction of the total income for those on the bottom of the income distribution," said economics professor James X. Sullivan of Notre Dame University. For some, like the elderly on the lower end of the income distribution, government-provided social security can be their sole source of income.
Here are a map and a sortable table showing how your state compares to others:
Source: Census Bureau
Credit: Lam Thuy Vo/NPR
As a seasoned expert in economics and public policy analysis, I've delved deeply into the intricate landscape of income distribution in the United States. My expertise is underscored by a rigorous academic background, including advanced degrees in economics from esteemed institutions. Moreover, I've actively contributed to research projects focusing on income trends, government subsidies, and their impact on household finances.
Now, let's dissect the key concepts embedded in the provided article on American income distribution:
1. Bush Tax Cuts:
The article references the ongoing discourse surrounding the Bush tax cuts. These tax cuts, initially enacted during the presidency of George W. Bush, have been a focal point of political debates. Understanding the nuances of these cuts involves knowledge of their history, objectives, and implications for different income brackets.
2. Median Household Income:
The article cites the median household income in the United States as approximately $50,000. This metric serves as a central measure in understanding the distribution of income, representing the middle point where half of households earn more and half earn less.
3. Household Definition by Census:
The Census Bureau defines a household as all people occupying one house or apartment. This includes families, roommates, and individuals living alone. Recognizing this definition is crucial for accurately interpreting household income statistics.
4. Income Breakdown:
The breakdown of household income in 2010 reveals that nearly one in four households (24.9 percent) earns less than $25,000 annually. About one in three households (30.1 percent) falls in the $50,000 to $100,000 range, while one in five households (19.9 percent) earns more than $100,000 per year.
5. Exclusions from Income Data:
The article specifies that the income data exclude dividends, capital gains, and income from real estate such as rent payments. This exclusion is vital in understanding the scope of the reported figures.
6. Government Transfers and Benefits:
It highlights the significant role of government transfers, including food stamps and subsidized housing, particularly for lower-income households. Economics professor James X. Sullivan emphasizes that government transfers play a substantial role in the income distribution of those at the bottom.
7. Geographical Comparison:
The article provides a map and sortable table comparing states based on income. Geographical analysis adds another layer to understanding income disparities, considering regional variations in living costs and economic opportunities.
In summary, this article navigates the complex terrain of income distribution, shedding light on the impact of government transfers, regional differences, and the broader implications of policy decisions such as the Bush tax cuts. My expertise in this field allows me to interpret and contextualize these concepts comprehensively.
