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will be restricted to values of income not smaller than Wo
the unit of income and wealth. In other words, the income
distribution will confirm to the Pareto problem only for
values of income above Wo; this may serve to explain why the
income distributions are usually much less Pareto-conform than
the wealth distributions, starting to become straight lines only
near the top of the income distribution while the wealth dis
tribution is straight for almost the whole range of taxable
wealth.