The Corner

More Tax Breakdowns

I made a few more charts over the weekend about average effective federal tax rates and shares of taxes paid by income percentiles. The data, which comes from the Tax Policy Center, includes all federal taxes: income tax, payroll tax, estate tax, and corporate income tax. One thing is certain: Whether one thinks that the current system is fair, unfair, or just right, there can be little debate that federal income taxes are progressive.

Here is how it breaks down at the very top:

Top 80–90 percent: effective rate is 19.4 percent; share of taxes paid is 15.2 percent; and share of cash income is 14.3 percent.

Top 90–95 percent: effective rate is 22 percent; share of taxes paid is 11.7 percent; and share of cash income is 9.7 percent.

Top 95–99 percent: effective rate is 23.5 percent; share of taxes paid is 17.4 percent; and share of cash income is 13.5 percent

Top 1 percent: effective rate is 26.1 percent; share of taxes paid is 22.9 percent; and share of cash income is 16 percent.

Top 0.1 percent: effective rate is 27.9 percent; share of taxes paid is 10.8 percent; and share of cash income is 7.1 percent.

Here is a link to the data for effective rate and share of taxes paid.

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