Income Inequality. Income inequality, as measured by the Gini coefficients for income both before and after transfers and taxes, rose between 19.Average federal tax rates fell between 19 across the income distribution, with the sharpest decline in the lowest quintile. Federal Taxes. Higher-income households typically paid a higher average federal tax rate than lower-income households.As a percentage of income before transfers and taxes, means-tested transfers rose over the 41-year period, primarily driven by an increase in Medicaid spending. Between 19, households in the lowest quintile received more than half of all means-tested transfers.
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