Income inequality is a hot topic these days, with the Occupy Wall Street movement of a few years back and so much attention being paid to the disproportionate share of income for the top 1% in the U.S. However, that's not true for income earned by labor (wages, tips, etc.). In fact, it's quite the opposite, with the top 1% earning only about 1% of income from labor. How can this be? This discrepancy of polar extremes is because the top 1% earns around 75% of income from capital gains.
