Tuesday, September 16, 2008

who pays "income" taxes?

the latest: Federal Individual Income Tax Data for 2006 (hat tip: Heartland Institute's Budget and Tax News)

Of course, this does not include the far more oppressive "payroll" taxes on income...But since only Libertarians talk about those, they probably don't matter. So, let's just focus on income taxes, shall we?

the top 1% of those with positive adjusted gross income (AGI)
-earn 22% of AGI
-earn at least $388K
-pay 40% of income taxes
-face a 22.8% average tax rate (ATR)

the top 5% of those with positive adjusted gross income (AGI)
-earn 37% of AGI
-earn at least $154K
-pay 60% of income taxes
-face a 20.7% average tax rate (ATR)

the top 10% of those with positive adjusted gross income (AGI)
-earn 47% of AGI
-earn at least $109K
-pay 71% of income taxes
-face a 18.9% average tax rate (ATR)

the top 25% of those with positive adjusted gross income (AGI)
-earn 68% of AGI
-earn at least $65K
-pay 86% of income taxes
-face a 16.0% average tax rate (ATR)

the top 50% of those with positive adjusted gross income (AGI)
-earn 87% of AGI
-earn at least $32K
-pay 97% of income taxes
-face a 14.0% average tax rate (ATR)

the bottom 50% of those with positive adjusted gross income (AGI)
-earn 13% of AGI
-earn less than $32K
-pay 3% of income taxes
-face a 3.0% average tax rate (ATR)

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