1. Well over one-half (54 percent in 1976) of all income in the United States is earned by the middle 60 percent of all families. The bottom 20 percent receives a little more than 5 percent, whereas the top 20 percent receives approximately 40 percent. Thus, there is substantial inequality in the before-tax distribution of income. Adjustment for in-kind transfers, taxes, and size of household significantly reduces the measured inequality of net income. For example, the adj usted 1972 figure for income received by the bottom 20 percent of income recipients is l 1.7 percent of the total income, and that for the top 20 percent is 32.8 percent. The adjusted data indicate that there has been a significant move toward equality during the pos t-World War II period.