U.S. Distribution of Income (2000)
|
Quintile
|
Percentage share of income
|
|
Lowest fifth
|
3.6
|
|
Second fifth
|
8.9
|
|
Third fifth
|
14.9
|
|
Forth fifth
|
23.0
|
|
Highest fifth
|
49.6
|
Question #2. Suppose that the voters in the U.S. have decided through a ballot measure to tax the richest quintile by 10 percent. The tax will then be redistributed evenly to the poorest two quintiles.
(2A) What is the share of income that the richest quintile now shares?
(2B) What is the share of income that the poorest quintile now shares?
(2C) What is the share of income that the 2nd poorest quintile now shares?
(2D) Is the income distribution more equal after this policy has been implemented? Explain?