One of the things the Congressional Budget Office link that I gave at posting 447 shows is the following comparison of estimated Federal income taxes as a percentage of family income for 1999 paid by families grouped in quintiles.
This is compared with the estimated rate of total Federal taxes paid when payroll taxes paid by the employee and employer are added to the income tax percentage, and where Federal corporate income taxes and Federal excise taxes are allocated to the families based on the amount families at the five income levels spend on goods and services. These are Federal figures only. This does not include State and Local income taxes, sales taxes, property taxes, gasoline taxes, etc.
Average Federal income tax rate paid (as a % of family average family income):
Bottom 20% = -6.8%
Second Quintile = 0.9%
Middle Quintile = 5.4%
Fourth Quintile = 8.4%
Top 20% = 16.1%
Top 10% = 18.0%
Top 5% = 19.6%
Top 1% = 22.2%
Average Total Federal tax rate paid (including payroll-employee and employer share, corporate income tax, and excise taxes)as a % of average family income.
Bottom 20% = 4.6%
Second Quintile = 13.7%
Middle Quintile = 18.9%
Fourth Quintile = 22.2%
Top 20% = 29.1%
Top 10% = 30.6%
Top 5% = 31.8%
Top 1% = 34.4%
The people in the bottom 20% pay no income tax but get back, on average, Earned Income Credit of 6.8% of their average family income. But when you add in both the employee and employer share of payroll taxes and allocate a share of Federal corporate income taxes and excise taxes, the share of the bottom quintile is 4.6% of family income.
The middle 20% pay 18.9% of total family income in Federal taxes, but less than one-third is Federal income taxes.
Families in the top 10% pay 30.6% of average family income in Federal taxes with over one half in Federal income taxes.
When you look at these percentages and then add the rate of state and local income, sales, property, gasoline and other taxes and fees, those of us in the upper one-half pay plenty.
You might ask, "How much is the upper one-half income?"
The report was stated in constant 1995 dollars, so you would have to add several percent for inflation. The report showed average family income for these groups for 1999 as:
Bottom 20% = $8,400
Second Quintile = 21,200
Middle Quintile = 35,400
Fourth Quintile = 53,000
Top 20% = 132,000
Top 10% = 188,000
Top 5% = 276,000
Top 1% = 719,000
It doesn't take a lot of family income to get in the upper half, does it? |
