TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Friday, December 9, 2005

Tax Policy Center Releases Revenue and Distributional Impacts of Current Tax Law

The Tax Policy Center yesterday released revenue and distributional impacts of the current tax law by both cash income percentiles and cash income class:

The following table shows the distributional breakdown of existing law (the federal taxes include the individual income tax, payroll tax (Social Security and Medicare), corporate income tax, and estate tax) by cash income group (percentage):

Income %

% of Income

% of Federal Taxes

Total Federal Tax Rate

Bottom 20%

2.5%

0.4%

3.3%

Next 20%

6.4%

2.3%

7.5%

Middle 20%

11.4%

7.8%

14.4%

Next 20%

19.8%

17.5%

18.6%

Top 20%

60.3%

71.9%

25.1%

The following table shows the distributional breakdown of existing law within the top 10% of income group:

Income %

% of Income

% of Federal Taxes

Total Federal Tax Rate

Top 10%

44.7%

56.2%

26.5%

Top 5%

33.5%

43.9%

27.5%

Top 1%

18.4%

25.6%

29,3%

Top 0.5%

14.5%

20.7%

30.0%

Top 0.1%

8.4%

12.5%

31.4%

The following table shows the distributional breakdown of existing law (the federal taxes include the individual income tax, payroll tax (Social Security and Medicare), corporate income tax, and estate tax) by cash income group (class):

Income %

% of Income

% of Federal Taxes

Total Federal Tax Rate

< 10k

1.2%

0.2%

3.8%

10k - 20k

4.2%

0.9%

4.7%

20k - 30k

5.6%

2.6%

10.0%

30k - 40k

5.9%

4.1%

14.4%

40k - 50k

5.9%

4.7%

16.7%

50k - 75k

14.4%

12.7%

18.6%

75k - 100k

11.9%

11.5%

20.3%

100k - 200k

22.5%

24.6%

23.1%

200k - 500k

12.6%

15.7%

26.1%

500k - 1m

5.0%

6.4%

26.9%

> 1m

11.2%

16.4%

30.8%

http://taxprof.typepad.com/taxprof_blog/2005/12/tax_policy_cent_2.html

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Tracked on Dec 9, 2005 11:09:52 AM

Comments

I knew it. The rich just don't pay their fair share of taxes.

Posted by: Robert Schwartz | Dec 11, 2005 7:59:12 AM