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Top 1 percent took record share of 2012 US income

WASHINGTON (AP) - The pay gap between the richest 1 percent and the rest of America widened to a record last year.

The top 1 percent of earners collected 19.3 percent of household income in 2012, their largest share in Internal Revenue Service figures going back a century.

U.S. income inequality has been growing for almost three decades. But until last year, the top 1 percent's share of pre-tax income hadn't surpassed the 18.7 percent it reached in 1927, according to an analysis of IRS figures dating to 1913 by economist Emmanuel Saez of the University of California, Berkeley, and three colleagues.

Saez wrote that 2012 incomes of the richest Americans might have surged in part because they cashed in stock holdings to avoid higher capital gains taxes that took effect in January.