The following data represent the percentage of total adjusted gross income (AGI) earned by various income classes. The top 1% represents the percentage of total AGI earned by those whose income is higher than 99% of all earners. The bottom 50% represents the percentage of total AGI earned by those whose income is in the bottom 50% of all income earners. For example, in 2001, 17.53% of all income earned in the United States was earned by those in the top 1% of all income earners, while 13.81% of all income earned in the United States was earned by those in the bottom 50% of income earners.

(a) Use the data to make a strong argument that adjusted gross incomes are diverging among Americans.

The following data represent the percentage of total tax paid by the top 1% of all income earners and the bottom 50% of all income earners.

(b) Use the data to make an argument that, while incomes are diverging between the top 1% and bottom 50%, the total taxes paid as a share of income are also diverging.

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Year Adjusted Gross Income Share of Adjusted Gross Income Share of Bottom 50% of Earners 2001 2002 2003 2004 2005 2006 2007 2008 2009 Top 1% of Earners 17.53 16.12 16.77 19.00 21.20 22.06 22.83 20.00 16.93 13.81 14.23 13.99 13.42 12.83 12.51 12.26 12.75 13.48 Year Income Tax Share Income Tax of Top 1% of Earners Share of Bottom 50% of Earners 2001 2002 2003 2004 2005 2006 2007 2008 2009 33.89 33.71 34.27 36.89 39.38 39.89 40.41 38.02 36.73 3.97 3.50 3.46 3.30 3.07 2.99 2.89 2.70 2.25