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ABSTRACT: An academic journal article on the technicalities of tax data is not usually cause for much excitement. Yet at the end of last year, one such publication in the Journal of Political Economy set #Econtwitter afire with debate, and prompted a full column in the Economist. The paper, by Gerald Auten and David Splinter, took aim at the famous studies on rising inequality conducted by Thomas Piketty, Emmanuel Saez, and Gabriel Zucman. If one employs different assumptions, Auten and Splinter argued, post-tax income inequality in the United States appears not to have risen much since the 1960s. While Piketty and his collaborators systematically challenged the findings, their detractors were quick to the draw. "The Piketty and Saez work is careless and politically motivated," sniped James Heckman, a Nobel-winning Chicago School econometrician.
Simon Torracinta (Fri,) studied this question.