Number: RL34155 Title: Income Inequality and the U.S. Tax System Authors: Thomas L. Hungerford, Specialist in Public Finance Abstract: This report examines how income inequality interacts with the parameters of the U.S. tax system. The long-term trend in inequality and how this may be related to taxable income and tax revenues is examined. In addition, the implications of rising inequality for tax policy are investigated through illustrative tables. Pages: 19 Date: January 6, 2009