The Rich do not pay a lower percentage of income when all federal taxes are taken into account
Income groups
Average
income
(pre-tax)
Average tax rates (percent)
Income shares
Federal
individual
Payroll
(Social
Security
Medicare)
tax
Federal
corporate
Federal
estate
and gift
Total
federal
taxes
Pre-tax
income
share
Post-tax
income
share
Full population
(144 million
tax units) $52,110 11.5 9.3 2.3 0.4 23.4 100.0 100.0
P20–40 $15,897 3.2 10.6 2.0 0.0 9.4 6.1 7.2
P40–60 $29,870 3.2 11.2 1.7 0.0 16.1 11.5 12.6
P60–80 $52,137 7.3 11.6 1.6 0.0 20.5 20.0 20.8
P80–90 $83,012 9.2 11.9 1.6 0.0 22.7 15.9 16.1
P90–95 $117,709 11.6 11.5 1.8 0.0 24.9 11.3 11.1
P95–99 $199,033 16.4 8.1 2.5 0.1 27.2 15.3 14.5
P99–99.5 $428,690 21.4 4.6 3.7 1.6 31.3 4.1 3.7
P99.5–99.9 $863,607 23.8 3.0 4.3 1.9 33.0 6.6 5.8
P99.9–99.99 $3,158,720 25.1 1.6 4.9 2.4 34.1 5.5 4.7
P99.99–100 $18,113,612 26.2 1.4 4.6 2.5 34.7 3.5 3.0
Sources:
Computations are based on income tax return statistics and NBER TAXSIM calculator.Notes:
Families are ranked based on market income excluding realized capital gains and imputed payroll and
corporate taxes. P20–40 denotes families between percentile 20th and percentile 40th of the income
distribution (second quintile), etc. Average income includes realized capital gains and imputed payroll
and corporate taxes. Tax rates are estimated relative to income including realized capital gains and
imputed payroll and corporate taxes. Payroll tax includes employee and employer Social Security and
Medicare taxes (excludes payroll taxes for unemployment and workers compensation).Computations are based on incomes from 2000 adjusted for growth and using 2004 tax law.
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