Most of the measured 50% improvement at the median comes from the inflation adjustment, but a substantial part (particularly in the 2000s) comes from tax cuts; for those in the bottom 10-20%, transfers matter much more than taxes, and the combination of raising exemptions and expanding the Earned Income Tax Credit dramatically increased after-tax incomes of the poor relative to pre-tax income.

causalpending

Speaker

Bruce Meyer

Evidence Quote

the combination of tax cuts and expansions of the Earned Income Tax Credit have dramatically increased the after-tax incomes of the poor relative to the pre-tax income

Source

Bruce Meyer on the Middle Class, Poverty, and Inequality 10/03/2011EconTalk
Created: 6/15/2026, 9:20:26 AM

My Notes

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