<P> CBO reported that less progressive tax and transfer policies contributed to an increase in after - tax income inequality between 1979 and 2007 . This indicates that more progressive income tax policies (e.g., higher income taxes on the wealthy and a higher earned - income tax credit) would reduce after - tax income inequality . </P> <P> Recent policies enacted under President Obama increase taxes on the wealthy, including the American Taxpayer Relief Act of 2012 and the Affordable Care Act . As reported by The New York Times in January 2014, these laws include several tax increases on individuals earning over $400,000 and couples earning over $450,000: </P> <Ul> <Li> Raised the top marginal tax rate to 39.6% from 35%; </Li> <Li> Raised the rate on dividends and capital gains by 5 percentage points, to 20 percent; and </Li> <Li> Two new surcharges--a 3.8% tax on investment income and a 0.9% tax on regular income . </Li> </Ul> <Li> Raised the top marginal tax rate to 39.6% from 35%; </Li>

Which resource generates the largest share of household income in the united states