Via DCFPI.Income inequality in Washington, D.C. is fourth highest in the nation, below Atlanta, Boston and Miami.
A report by the D.C. Fiscal Policy Institute compared the 50 largest U.S. cities and found “The average income of the top five percent of District households is 54 times the income of the bottom 20 percent.” That’s an average income of over $530,000 for the richest D.C. residents and just under $9,900 for the poorest. The latter covers 12 percent of an $85,019 budget (necessities without assistance) for a single parent with two children.
“Making work pay and taking steps to help bridge the gap between the high cost of living and low wages for low-income residents will help increase economic mobility and lessen inequality,” the report by Wes Rivers says. “Policy proposals such as an expanded Earned Income Tax Credit and higher personal exemptions and standard deductions in the income tax can help low-income residents take home more of what they earn. Investing in training programs to help close literacy and skills gaps can help residents obtain some of the jobs the District is creating. Lastly, expanding the supply of affordable housing stock, better access to subsidized health insurance, and other supports for low-income residents will help alleviate the high costs associated with living in a large city and help preserve the economic diversity of DC.”
DCFPI released a report earlier this month detailing how the wage gap in D.C. is growing. Hourly wages have fallen during the past decade for people with just a high school diploma, and wages have grown at a much slower rate for black and Hispanic residents than white residents.
