econscius

Who Pays What Average Income Tax Rates

In Income Tax Rates, Political Rhetoric, President Obama, Warren Buffett on October 9, 2011 at 2:23 am

Average Tax Rate by Share of Income, Source: IRS 2008 Data

There is an awful lot of misinformation floating around about what average tax rates are paid at different income levels.  It is actually very simple, which is why I put together this graph. 
 
Some would have you believe the richest of the rich pay a lower average rate than “a secretary”.  On average, that is simply not the case.  The Bottom 50% of taxpayers paid an average of 2.59% of their Adjusted Gross Income (“AGI”) as income tax.  The Top 1% paid 23.27% of their AGI as income tax.
  

Share of Income Average Tax Rate
Bottom 50% 2.59%
25-50% 6.75%
10-25% 9.29%
5-10% 12.44%
1-5% 17.21%
Top 1% 23.27%
 
The bottom 50% of taxpayers paid 2.7% of all income taxes paid, and the top 5% paid more than half of the total.
 
 

Share of Income Group’s Share of Income Taxes
Bottom 50% 2.70%
25-50% 10.96%
10-25% 16.40%
5-10% 11.22%
1-5%

  20.70%

Top 1% 38.02%
 
Data source: 2008 IRS data from http://www.taxfoundation.org/news/show/250.html
Advertisements
  1. […] https://econscius.wordpress.com/2011/10/09/who-pays-what-average-income-tax-rates/ Advertisement GA_googleAddAttr("AdOpt", "1"); GA_googleAddAttr("Origin", "other"); GA_googleAddAttr("theme_bg", "FFFFFF"); GA_googleAddAttr("theme_text", "000000"); GA_googleAddAttr("theme_link", "990000"); GA_googleAddAttr("theme_border", "CCCCCC"); GA_googleAddAttr("theme_url", "CC0000"); GA_googleAddAttr("LangId", "1"); GA_googleAddAttr("Autotag", "business"); GA_googleAddAttr("Autotag", "money"); GA_googleAddAttr("Tag", "buffett-rule"); GA_googleAddAttr("Tag", "income-tax-rates"); GA_googleAddAttr("Tag", "obama-administration"); GA_googleAddAttr("Tag", "warren-buffett"); GA_googleAddAttr("Tag", "debbie-bosanke"); GA_googleAddAttr("Tag", "income-tax-rates"); GA_googleAddAttr("Tag", "obama-state-of-the-union-address"); GA_googleAddAttr("Tag", "warren-buffett"); GA_googleFillSlot("wpcom_sharethrough"); Rate this: Share this:TwitterFacebookDiggStumbleUponEmailRedditPrintLike this:LikeBe the first to like this post. ▶ No Responses /* 0) { jQuery('#comments').show('', change_location()); jQuery('#showcomments a .closed').css('display', 'none'); jQuery('#showcomments a .open').css('display', 'inline'); return true; } else { jQuery('#comments').hide(''); jQuery('#showcomments a .closed').css('display', 'inline'); jQuery('#showcomments a .open').css('display', 'none'); return false; } } jQuery('#showcomments a').click(function(){ if(jQuery('#comments').css('display') == 'none') { self.location.href = '#comments'; check_location(); } else { check_location('hide'); } }); function change_location() { self.location.href = '#comments'; } }); /* ]]> */ […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: