Middle Class Charts

Some policy activists and policymakers claim that the middle class is stagnant. But it is hard to square such claims with a new report from the nonpartisan Congressional Budget Office. Focusing on the broad middle class, the 21st to 80th income percentiles since 1980 gives us these charts.

“Income before transfers and taxes” — or roughly market incomes plus social insurance benefits such as Social Security and Medicare —  was up 28%. Not zero

“Income after transfers and taxes” — market income plus social insurance benefits plus means-tested transfers (Medicaid, food stamps) minus federal taxes — was up considerably more, 42%. Not zero.

More impressive still: Incomes for the bottom fifth are up nearly 70%.