Happy Tax Day

by Larry Emmott on April 18, 2011

in General,Health Care Politics,Management

Interesting IRS stats from Peggy Ullmann one of my CPA biking buddies:

Most of the income tax burden is borne by upper incomers.  The top 1% of filers paid 38% of all federal income taxes according to the latest statistics from IRS.  This very small slice of taxpayers reported 20% of the total adjusted gross income show on tax returns.  To qualify for the top 1% of earners in 2008, you needed to have adjusted gross income of at least $380,354.

The highest 5% paid 58.7% of total income tax and accounted for 34.7% of all adjusted gross income.  They each had AGIs of at least $159,640.  The top 10% of filers, those with AGIs of $113,799 or more, bore 69.9% of the total tax burden while bringing in a little bit less than 46% of the total adjusted gross income.

Note that the bottom 50% of all filers paid 2.7% of the total income tax bill.  Many of them get the earned income credit, which refunds income and payroll taxes.

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