The Internal Revenue Service has released new data on individual income taxes, reporting on calendar year 2011. The IRS data continues to reflect the fact that half of all taxpayers pay nearly all income taxes. However, the improving economy resulted in a spreading of the tax burden as the number of filers increased along with incomes and taxes paid for all income groups except the top 0.1 percent. The higher incomes pushed taxpayers into higher brackets, resulting in an increase in average income tax rates for all income groups except the top 0.1 percent, whose effective rate remained about the same as in 2010. The income shares of the top 1 and 2 percentiles fell in 2011, as did their shares of taxes paid.The unequal tax burden in a small picture.
The Top 50 Percent of All Taxpayers Paid 97 Percent of All Income Taxes; the Top 5 Percent Paid 57 Percent of All Income Taxes; and the Top 1 Percent Paid 35 Percent of All Income Taxes in 2011
Table 1 breaks down the latest IRS data on number of returns, adjusted gross income, income taxes paid, and average tax rate by income group. In 2011, the bottom 50 percent of taxpayers (those with Adjusted Gross Incomes (AGI) below $34,823) accounted for 11.55 percent of total AGI. This group of taxpayers paid approximately $30 billion in taxes, or 2.89 percent of all income taxes in 2011. In contrast, the top 50 percent of taxpayers (those with AGIs above $34,823) accounted for 88.5 percent of total AGI. The top 50 percent of taxpayers paid $1.01 trillion in income taxes, or 97.1 percent of all income taxes in 2011.
In 2011, the top 10 percent of taxpayers (with AGIs above $120,000) accounted for 45.4 percent of all AGI and 68.3 percent of all income taxes paid. Taxpayers in the top 5 percent accounted for 33.9 percent of all AGI and 56.5 percent of all income taxes paid. The top 1 percent of all taxpayers accounted for 18.7 percent of all AGI and 35.1 percent of all income taxes paid.
Thursday, December 19, 2013
The Tax Foundation reports:
Posted by Steve Bartin at 12:26 PM