A new report by the Congressional Budget Office reveals a widening wealth gap in the U.S. since 1979, with the top 1% doubling their share of income. The middle class has seen relative status diminish, while the ultrawealthy have experienced exponential income growth.

Market income, particularly capital gains, has been a key driver of income inequality. The tax and transfer system has attempted to mitigate this gap, with the wealthy now paying a larger share of federal taxes. Government assistance for the poorest Americans has also increased over the years.

Following the COVID-19 pandemic, average income for all groups decreased in 2022. Lower-income households were impacted by the expiration of pandemic-era policies, while the wealthy saw a dip in realized capital gains. Despite temporary fluctuations, income inequality has significantly widened since 1979.

The Gini coefficient, a measure of income inequality, underscores the stark divide between the rich and the rest of the country. The U.S. tax system, often misconstrued, is actually highly progressive, making it challenging to raise substantial revenue due to the disproportionate share paid by the wealthy. 1. The FDA approves a new drug for the treatment of Alzheimer’s disease. Aducanumab, developed by Biogen, is the first treatment to target the underlying cause of the disease. Clinical trials show a significant reduction in brain plaque associated with Alzheimer’s.

2. The unemployment rate in the United States falls to 5.8% in May as the economy continues to recover from the impact of the COVID-19 pandemic. Job gains were seen in the leisure and hospitality, public and private education, and healthcare sectors.

3. NASA’s Perseverance rover successfully extracts oxygen from the Martian atmosphere using a device called MOXIE. This milestone demonstrates the potential for producing oxygen on Mars to support future human missions to the red planet.

4. Amazon announces plans to acquire MGM Studios for $8.45 billion, expanding its content library with popular film and television titles like James Bond and The Handmaid’s Tale. The deal is subject to regulatory approval and is expected to strengthen Amazon’s position in the streaming market.

Read more at Yahoo Finance: How the middle class was hollowed out from 1979 to 2022, according to new federal data