kcjenkins Posted December 3, 2007 Report Share Posted December 3, 2007 Who Pays Income Taxes? See Who Pays What For Tax Year 2005 Percentiles Ranked by AGI.....AGI Threshold on Percentiles..... Percentage of Federal Personal Income Tax Paid Top 1% .........................................$364,657......................................... 39.38 Top 5% ........................................ $145,283......................................... 59.67 Top 10% ........................................ $103,912........................................ 70.30 Top 25% ......................................... $62,068........................................ 85.99 Top 50% ........................................ $30,881........................................ 96.93 Bottom 50% .................................. <$30,881 ...................................... 3.07 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2004 Percentiles Ranked by AGI..... AGI Threshold on Percentiles.....Percentage of Federal Personal Income Tax Paid Top 1% ....................................... $328,049................................... 36.89 Top 5% ...................................... $137,056 .................................. 57.13 Top 10% .................................... $99,112 .................................. 68.19 Top 25% .................................... $60,041 .................................. 84.86 Top 50% ..................................... $30,122 ................................. 96.70 Bottom 50% ............................... <$30,122 ................................. 3.30 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2003 Percentiles Ranked by AGI......AGI Threshold on Percentiles.....Percentage of Federal Personal Income Tax Paid Top 1% ..................................... $295,495 ................................... 34.27 Top 5% .................................... $130,080 ................................... 54.36 Top 10% .................................. $94,891 ................................... 65.84 Top 25% .................................. $57,343 ................................... 83.88 Top 50% ................................... $29,019 ................................... 96.54 Bottom 50% .............................. <$29,019 .................................. 3.46 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2002 Percentiles Ranked by AGI..... AGI Threshold on Percentiles.....Percentage of Federal Personal Income Tax Paid Top 1% ........................................ $285,424 ................................. 33.71 Top 5% ........................................ $126,525................................. 53.80 Top 10% ..................................... $92,663................................. 65.73 Top 25% .................................... $56,401 ................................ 83.90 Top 50% ...................................... $28,654 ................................ 96.50 Bottom 50% ................................ <$28,654 ................................. 3.50 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2001 Percentiles Ranked by AGI..... AGI Threshold on Percentiles..... Percentage of Federal Personal Income Tax Paid Top 1% ...................................... $292,913 ................................. 33.89 Top 5% ...................................... $127,904 ................................. 53.25 Top 10% ................................... $92,754 ................................ 64.89 Top 25% .................................. $56,085 ................................ 82.90 Top 50% .................................. $28,528 ................................ 96.03 Bottom 50% .............................. <$28,528 ............................... 3.97 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2000 Percentiles Ranked by AGI.......AGI Threshold on Percentiles.......Percentage of Federal Personal Income Tax Paid Top 1% ..................................... $313,469 .................................... 37.42 Top 5% ...................................... $128,336 .................................... 56.47 Top 10% .................................... $92,144 .................................... 67.33 Top 25% .................................... $55,225 .................................... 84.01 Top 50% .................................... $27,682 .................................... 96.09 Bottom 50% ............................... <$27,682 .................................... 3.91 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 1999 Percentiles Ranked by AGI.....AGI Threshold on Percentiles.......Percentage of Federal Personal Income Tax Paid Top 1% .......................................... $293,415 ................................. 36.18 Top 5% .......................................... $120,846 ................................. 55.45 Top 10% ........................................ $87,682 ................................. 66.45 Top 25% ........................................ $52,965 ................................ 83.54 Top 50% ........................................ $26,415 ................................ 96.00 Bottom 50% ...................................<$26,415 ................................. 4.00 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service Quote Link to comment Share on other sites More sharing options...
Lion EA Posted December 4, 2007 Report Share Posted December 4, 2007 Thanx, KC. I noticed the trend over the years.... I'm going to post it on my website, if that's OK with you? And, a big holiday thank you for EVERYTHING you do for us here. My prayers for your husband, you, and your whole family. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 4, 2007 Author Report Share Posted December 4, 2007 Of course it's OK, this is public information that needs to be disseminated more widely. IMHO. It clearly shows that those pols who talk about the Bush tax cuts being 'for the rich' are not telling the truth. The bottom HALF of all taxpayers got their taxes cut by 25%. While the top 10% went up significantly. Unless we can talk HONESTLY about taxes, we will never get real reforms passed. As long as they demagogue the issue as they are doing now, we will just get more and more complexity, without addressing any of the real issues of inequities in the system. Quote Link to comment Share on other sites More sharing options...
Kea Posted December 4, 2007 Report Share Posted December 4, 2007 It clearly shows that those pols who talk about the Bush tax cuts being 'for the rich' are not telling the truth. The bottom HALF of all taxpayers got their taxes cut by 25%. While the top 10% went up significantly. From these charts alone, we can't say that the "bottom half of all taxpayers got their taxes cut by 25%", only that their share of the total of taxes paid went down 25%. The share that is paid by the top 10% went up 5.8%. Is that "significantly"? That's hard to answer without more information. Also over this period the UPPER threshold for the bottom 50 percentile group went up almost 17%, while the LOWER threshold for the top 1% went up over 24%. (The lower threshold for the top 10% went up 18.5%.) While I agree that these statistics are interesting (I am a numbers junkie), they don't tell us anything about the tax rates paid by the various groups. I would also be interested in seeing charts of net income tax rates paid by quintile or decile for the same time period. How does it change if you add in SSI / Medicare? Quote Link to comment Share on other sites More sharing options...
MontanaEA Posted December 4, 2007 Report Share Posted December 4, 2007 KC, maybe you can help me to understand your comments above. I'm looking at the charts you published, and here's what I don't understand. 1. We know that tax rates stayed the same for 1993 thru 2000. Then they decreased for 2001, again for 2002, and once again for 2003 thru 2007. These decreases applied to every tax bracket. So, if taxes increased for the top 10% after 2000, wouldn't it be due to the fact that they had more taxable income, rather than that their rate of tax increased? If my taxable income increases, then I guess I would expect the amount of tax that I owe to increase. 2. The percentages on the far right side of your charts are percentages of total federal personal income tax paid by each group, not the tax rate for each group. Therefore, I don't understand how you can state that the bottom half of all taxpayers got their taxes cut by 25%. Wouldn't it more likely mean that since the top taxpayers had more income and paid more tax, that the bottom taxpayers, whose income didn't increase as much, now have a lesser proportionate share of both total income and total income taxes paid? 3. The charts above only speak to federal personal income tax paid. Also, the fact is that the very few richest taxpayers skew the charts significantly. If we add amounts paid for all federal state and local taxes, and contrast the richest 400 taxpayers with everyone else, then the percentages are significantly different. In the year 2000, at the height of the last economic boom and before the most recent round of tax cuts were enacted, IRS data shows that the richest 400 taxpayers paid 27% of their income in federal, state, and local taxes. On average, these 400 taxpayers each had taxable income of $151 million. All other taxpayers had average taxable income of only $34,600, and yet their tax burden was 40%. Do those rates look fair to you? They don't to me. I completely agree with you that unless we can talk HONESTLY about taxes, we will never get real reforms passed. I think that a very small number of very wealthy people are foisting their tax responsibilities off on the other 99.9% of us. I don't think your charts show the whole picture. I think they ought to show a catagory for the top .1% of taxpayers, and I think they should include all taxes, or at least all federal taxes, including payroll taxes in order to paint an accurate picture of what's happening. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted December 5, 2007 Report Share Posted December 5, 2007 Thank you Kea and MontanaEA. While on the surface it looks like taxes on the rich went up, it is overly simplistic charts like these that easily allow the misuse of statistics. Delving down a little deeper than a quick overview is more difficult than just looking at the top and bottom percentages, but necessary to get a real analysis of the facts. What my quick overview said to me was that the rich are getting richer....the upper 1% is $36,608 higher than it was just the year before, while the income in the bottom 50% dropped. Quote Link to comment Share on other sites More sharing options...
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