Piketty-Saez (2003)'s fiscal income denominator understates actual tax-reconciled fiscal income from national accounts for most of 20th century. That means their top income concentration estimates are consistently too high, leading them to overstate income inequality.

Piketty-Saez (2003)'s fiscal income denominator understates actual tax-reconciled fiscal income from national accounts for most of 20th century. That means their top income concentration estimates are consistently too high, leading them to overstate income inequality. pic.twitter.com/nGM5y5TYUH

— Phil Magness (@PhilWMagness) December 20, 2018