Interesting Tax Facts
New income tax burden statistics from IRS shed some light on whether the rich are being taxed too little or too much.
- Top 1% of individual filers paid 39.5% of all federal income taxes in 2014, the most recent year the revenue has analyzed. That’s up from 37.8% in 2013. They reported 20.6% of total adjusted gross income, also larger than in prior year. Filers needed to have AGIs of at least $465,626 to qualify for the top 1% of earners.
- The highest 5% paid 59.97% of total income tax and accounted for 35.96% of all adjusted gross income. They each had AGI of at least $188,996.
- The top 10% of filers, those with AGIs of $133,445 or more, bore 70.9% of the total tax burden while bringing in approximately 47.2% of individuals’ total adjusted gross income.
- The bottom 50% of filers paid just 2.75% of the total federal income tax take. Their share is so low because the figures do not include Social Security tax payments and because many of them get substantial tax relief through the earned income credit.
(Source: Kiplinger Tax Letter Vol. 91, No 25, Dec 16, 2016)