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AlbertJayNock

Some tax statistics I found

Here is a table I found at the Tax Foundation website, containing information from the IRS about the distribution of the tax burden. It can be seen from the table that the top 1% of taxpayers paid more than the bottom 90%. There's no entry for the bottom 90%, but you can derive it from the table by subtracting the percentage for the top 10% from 100. This gives 29.7%, which is less than the 39.38% paid by the top 1%.

That's not the most interesting statistic in the table though. The most meaningful statistics can be found in the column marked "Group's share of total AGI". Note that for all but the bottom 50%, the percentage of total AGI (or adjusted gross income) is less than the percentage of income taxes paid.

This is important, because when you hear things like "the top 1% of income earners pay 39% of the taxes", it's tempting to think it's only because they earn a bigger percentage of income. It's a lot harder to dismiss that people who make only 21% of the income pay 39% of the taxes.

 

Number of Returns

AGI

($ millions)

Income Taxes Paid

($ millions)

Group's Share of Total AGI

Group's Share of Income Taxes

Income Split Point

All Taxpayers

132,611,637

$7,507,958

$934,703

100.00%

100.00%

-

Top 1%

1,326,116

$1,591,711

$368,132

21.20%

39.38%

above $364,657

Top 5%

6,630,582

$2,683,934

$557,759

35.75%

59.67%

above $145,283

Top 10%

13,261,164

$3,487,010

$657,085

46.44%

70.30%

above $103,912

Top 25%

33,152,909

$5,069,455

$803,772

67.52%

85.99%

above $62,068

Top 50%

66,305,819

$6,544,824

$906,028

87.17%

96.93%

above $30,881

Bottom 50%

66,305,818

963,134

28,675

12.83%

3.07%

below $30,881


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