Income Before Taxes: Income Before Taxes by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile)
CXUINCBEFTXLB0102M • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
15,596.00
Year-over-Year Change
59.06%
Date Range
1/1/1984 - 1/1/2023
Summary
The 'Income Before Taxes: Income Before Taxes by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile)' metric tracks pre-tax income for the lowest-earning 20% of U.S. households, providing insights into economic inequality and household financial security.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This series measures the average income before taxes for households in the lowest 20% of the income distribution. It is a key indicator of economic well-being and inequality, as it reflects the financial resources available to the lowest-income segment of the population.
Methodology
The data is collected through the U.S. Census Bureau's Current Population Survey.
Historical Context
Policymakers and economists use this metric to assess the financial status of low-income households and inform discussions around income distribution, tax policy, and social programs.
Key Facts
- The lowest 20% of U.S. households earned an average of $12,700 in pre-tax income in 2021.
- Income inequality has increased in the U.S. over the past four decades.
- The lowest-income quintile accounts for approximately 3.1% of total U.S. household income.
FAQs
Q: What does this economic trend measure?
A: This metric tracks the average income before taxes for households in the lowest 20% of the U.S. income distribution, providing insights into the financial resources available to low-income populations.
Q: Why is this trend relevant for users or analysts?
A: This indicator is important for understanding economic inequality and the financial well-being of low-income households, which can inform discussions around tax policy, social programs, and strategies to address poverty.
Q: How is this data collected or calculated?
A: The data is collected through the U.S. Census Bureau's Current Population Survey.
Q: How is this trend used in economic policy?
A: Policymakers and economists use this metric to assess the financial status of low-income households and inform discussions around income distribution, tax policy, and social programs.
Q: Are there update delays or limitations?
A: The data is typically updated on a monthly or quarterly basis, with some potential delays in publication.
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Citation
U.S. Federal Reserve, Income Before Taxes: Income Before Taxes by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile) (CXUINCBEFTXLB0102M), retrieved from FRED.