CHART OF THE DAY: The 5% Of American Households That The Fiscal Cliff Debate Is Really About

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As a fiscal cliff deal takes shape, it’s important to get some perspective on what’s being debated and who will be affected. An overwhelming amount of the negotiations have concerned taxes; in particular, the income threshold on which marginal tax rates will increase.

Justin Wolfers recently tweeted this chart.

“Compare the income thresholds being debated in fiscal cliff negotiations with the actual income distribution,” said Wolfers.

The chart shows that at least 95% of American households will not be affected as Washington decides on whether to raise taxes on those with incomes higher than $250,000, $500,000, or $1 million.

Compare the income thresholds being debated in #fiscalcliff negotiations with the actual income distribution.

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