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-- After working 117 days to pay taxes, April 27 is Paycheck Emancipation Day - 4/26/02

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 After working 117 days to pay taxes, April 27 is Paycheck Emancipation Day

April 26, 2002

WASHINGTON, DC -- On Saturday, America tells the federal government: "Show me my money!"

Because on Saturday, April 27, the average American stops working to pay taxes and starts working for himself or herself.

That's according to the Tax Foundation, a non-profit Washington, DC research group, which has designated April 27 as Tax Freedom Day. After laboring 117 days to pay federal, state, and local taxes, average Americans are finally allowed to keep the money they've earned.

"Forget the 4th of July -- April 27 is America's real Independence Day," said Steve Dasbach, executive director of the Libertarian Party, America's third-largest and most fervently anti-tax political party.

"Think of it as Paycheck Emancipation Day," he said. "After spending one-third of the year as an indentured servant to Uncle Sam, you're no longer working for the politicians."

According to the Tax Foundation, the average American:

* Worked 117 days this year to pay taxes -- the third longest time ever.

* Will work more than 2.5 hours out of every eight-hour workday to pay taxes.

* Will work 14.4 years out of a typical 45-year career to pay taxes.

On a state-by-state basis, Tax Freedom Day falls earliest in Alaska (April 11) and Oklahoma (April 15), and latest in Washington state (May 9) and Connecticut (May 14).

On average, the Tax Foundation says taxes consume about 32% of the typical worker's gross income -- more than most Americans spend on food, clothing, and housing, combined. Federal taxes grab 22.1%, with state and local taxes taking a 10% bite.

"As Tax Freedom Day approaches, we Libertarians challenge Americans to ask themselves just one question," said Dasbach. "Who can spend your money better -- you, or the politicians?

"If you answer politicians, then keep voting for Republicans and Democrats. They've made an art form out of snatching your money, and will be happy to continue doing so.

"But if you think you are better qualified to spend your own money, and want to keep more of the money you honestly earned, then start voting Libertarian. The Libertarian Party is working every day to slash taxes and let Americans keep more of what they earn," he said.

On the subject of taxes, the Libertarian Party Platform calls for "a drastic reduction of both taxes and government spending... We support the repeal of the Sixteenth Amendment, and oppose any increase in existing tax rates and the imposition of any new taxes."

Copyright 1994-2002, Libertarian Party, unless otherwise noted. All rights reserved worldwide.
For press inquiries, see: http://www.lp.org/press/

Back to TOP

 WHO PAYS WHAT?

DESTROYING THE MYTH OF THE "DECADE OF GREED."

The left just loves to refer to the Reagan years ad the "Decade of Greed." The implication is that higher income types got away with absolute murder during the '80's when it comes to paying income taxes. Well, let's take a look at some statistics from the Internal Revenue Service to see just what the various income levels were paying in income tax in 1981, and what they were paying in 1991.

1983 -- THE BEGINNING OF THE DECADE OF GREED -- THE YEAR THE REAGAN TAX BREAKS TOOK EFFECT.

Here we find the top 1% of all income earners in the United States paying a total of 20.3% of all of the personal income taxes collected by the IRS. The top 10% were paying 49.7% of all income taxes, and the top 50% was paying 92.8%. The bottom 50% of all income earners were paying only 7.2% of all income taxes.

1993 -- THE DECADE OF GREED ENDS! CLINTON RAISES TAXES SO THE EVIL RICH WILL PAY THEIR FAIR SHARE!

Ten years later, in 1993, we find the top 1% of all income earners paying 28.7% of all income taxes collected! Wow! Those rich SOB's really got away with murder, didn't they? The top 10% saw their share of total income taxes collected go from 49.7% to 58.8%. The greedy so-and-so's. The top 50% saw their share rise to 95.2% of all taxes, while the bottom 50% saw their share drop from 7.2% to 4.8%.

IT'S 1998 --- HOW ARE THE EXPLOITERS OF THE POOR DOING NOW?

The September 23, 1998 issue of The Wall Street Journal has the new numbers for us. The share of the taxes being paid by the top 1% has gone up again! For the year 1996 they are approaching 33%.

YEAH .. BUT THOSE RICH BASTARDS ARE EARNING SO MUCH THEY STILL WEREN'T PAYING THEIR FAIR SHARE

OK, fine. What would you consider a fair share? If the top 10% was earning 70% of all the income but only paying 58% of the taxes, that wouldn't be fair, would it? Well ... let's see what the figures show.

In 1993, at the end of the Decade of Greed, the top 1% were paying 28.7% of all taxes. They earned only 13.8% of all earned income. Oops! sounds like they are paying a bit more than their fair share, doesn't it? What about the top 10%? They were paying 58.8% of the income taxes but earning only 39% of the income. The top 50%? Paying 95.2% of the taxes, earning 85% of the income. The bottom 50%? Earning only 15% of the income but paying just 4.8% of the income taxes.

Update ... In 1996 the share of the income earned by the top 1% reached 16%. Remember: They're paying one third of all the taxes.

So ... who is getting away with not paying their fair share? Looks like the bottom 50% to me ... not the evil, hated, mean, nasty, wicked rich.


IRS is source of all data

Summary of Federal Individual Income Tax Data, 2000

 

Number of Returns
(000)

AGI
($000,000)

Income Taxes Paid
($000,000)

Group's Share of Total AGI

Group's Share of Income Taxes

Income Split Point

Average Tax Rate

All Taxpayers

128,227

6,423,977

980,521

100.0%

100.0%

-

15.3%

 

 

 

 

 

 

 

 

Top 1%

1,282

1,336,773

366,929

20.8%

37.4%

above $313,469

27.4%

Top 5%

6,411

2,267,403

553,670

35.3%

56.5%

above $128,336

24.4%

Top 10%

12,822

2,955,386

660,150

46.0%

67.3%

above $92,114

22.3%

Top 25%

32,057

4,313,786

823,706

67.2%

84.0%

above $55,225

19.1%

Top 50%

64,114

5,589,755

942,179

87.0%

96.1%

above $27,682

16.9%

Bottom 50%

64,114

834,222

38,342

13.0%

3.9%

below $27,682

4.6%

Historical Data on Federal Individual Income Tax Returns, 1980 - 2000

Number of Tax Returns Filed

 

Total

Top 1%

Top 5%

Top 10%

Top 25%

Top 50%

1980

93,238,823

932,388

4,661,941

9,323,882

23,309,706

46,619,411

1981

94,586,878

945,869

4,729,344

9,458,688

23,646,719

47,293,439

1982

94,426,498

944,265

4,721,325

9,442,650

23,606,624

47,213,249

1983

95,330,713

953,307

4,766,536

9,533,071

23,832,678

47,665,356

1984

98,436,000

984,350

4,921,750

9,843,500

24,608,750

49,217,500

1985

100,625,484

1,006,255

5,031,274

10,062,548

25,156,371

50,312,742

1986

102,087,623

1,020,876

5,104,381

10,208,762

25,521,906

51,043,811

1987

106,154,761

1,061,548

5,307,738

10,615,476

26,538,690

53,077,380

1988

108,872,859

1,088,729

5,443,643

10,887,286

27,218,214

54,436,429

1989

111,312,721

1,113,127

5,565,636

11,131,272

27,828,181

55,656,361

1990

112,812,262

1,128,123

5,640,613

11,281,226

28,203,066

56,406,132

1991

113,804,104

1,138,041

5,690,205

11,380,410

28,451,026

56,902,052

1992

112,652,759

1,126,528

5,632,638

11,265,276

28,163,190

56,326,380

1993

113,681,387

1,136,814

5,684,069

11,368,139

28,420,347

56,840,694

1994

114,989,920

1,149,899

5,749,496

11,498,992

28,747,480

57,494,960

1995

117,274,186

1,172,742

5,863,709

11,727,419

29,318,546

58,637,093

1996

119,441,767

1,194,418

5,972,088

11,944,177

29,860,442

59,720,884

1997

121,503,284

1,215,033

6,075,164

12,150,328

30,375,821

60,751,642

1998

123,775,831

1,237,758

6,188,792

12,377,583

30,943,958

61,887,915

1999

126,008,974

1,260,090

6,300,449

12,600,897

31,502,244

63,004,487

2000

128,227,143

1,282,271

6,411,357

12,822,357

32,056,786

64,113,572

Total Adjusted Gross Income Earned by Taxpayers
in Each Income Bracket (Millions of Dollars)

 

Total

Top 1%

Top 5%

Top 10%

Top 25%

Top 50%

1980

1,626,555

137,668

341,790

522,685

922,300

1,338,978

1981

1,791,116

148,722

372,171

572,719

1,015,006

1,473,267

1982

1,875,872

167,109

398,189

605,159

1,065,241

1,543,634

1983

1,969,600

182,895

428,162

645,661

1,127,019

1,625,287

1984

2,173,228

209,899

482,266

722,552

1,250,911

1,794,303

1985

2,343,989

235,095

531,372

791,481

1,358,860

1,939,351

1986

2,524,124

285,197

608,467

886,510

1,490,173

2,103,569

1987

2,813,728

346,635

722,221

1,038,221

1,709,389

2,373,869

1988

3,124,156

473,527

890,702

1,232,536

1,950,860

2,657,865

1989

3,298,858

468,079

918,421

1,286,539

2,054,478

2,805,235

1990

3,451,237

483,252

953,337

1,338,032

2,144,177

2,932,537

1991

3,516,142

456,603

943,350

1,343,202

2,174,765

2,984,003

1992

3,680,552

523,586

1,031,093

1,443,784

2,299,401

3,131,400

1993

3,775,578

520,586

1,048,252

1,474,463

2,357,953

3,212,299

1994

3,961,146

546,700

1,103,084

1,552,205

2,481,074

3,371,352

1995

4,244,607

619,610

1,222,723

1,704,513

2,689,820

3,627,542

1996

4,590,527

736,545

1,393,805

1,909,149

2,952,637

3,944,383

1997

5,023,457

872,826

1,597,107

2,151,401

3,267,600

4,327,992

1998

5,469,211

1,010,245

1,796,647

2,393,716

3,589,600

4,721,430

1999

5,909,329

1,152,820

2,011,763

2,652,835

3,927,308

5,126,164

2000

6,423,977

1,336,773

2,267,403

2,955,386

4,313,786

5,589,755

Total Income Tax after Credits (Millions of Dollars)

 

Total

Top 1%

Top 5%

Top 10%

Top 25%

Top 50%

1980

249,077

47,456

91,763

122,754

181,879

231,525

1981

282,298

49,622

98,966

135,394

204,068

261,263

1982

276,076

52,526

99,753

134,136

200,158

255,793

1983

271,645

55,195

101,228

135,032

198,567

252,167

1984

297,376

62,794

112,947

150,365

218,537

275,507

1985

321,916

70,209

124,850

165,652

238,419

298,842

1986

366,979

94,491

156,240

200,703

278,976

343,289

1987

369,046

91,559

159,642

205,230

283,857

346,655

1988

412,761

113,841

188,303

236,411

321,297

389,145

1989

432,838

109,259

190,188

241,458

334,258

407,599

1990

447,061

112,338

195,088

247,514

344,340

421,075

1991

448,349

111,267

194,480

250,282

346,511

423,759

1992

476,163

131,156

218,479

276,213

373,700

452,070

1993

502,720

145,836

238,083

297,808

398,516

478,563

1994

534,754

154,337

254,106

317,902

425,402

509,256

1995

588,331

178,035

287,741

357,402

472,808

561,225

1996

658,124

212,626

335,433

411,404

535,164

629,684

1997

727,303

241,239

377,241

459,639

594,007

696,161

1998

788,452

274,009

424,506

512,836

651,964

755,240

1999

877,292

317,419

486,464

583,002

732,890

842,168

2000

980,521

366,929

553,670

660,150

823,706

942,179

Adjusted Gross Income (High to Low AGI)

 

Total

Top 1%

Top 5%

Top 10%

Top 25%

Top 50%

1980

100.00%

8.46%

21.01%

32.13%

56.70%

82.32%

1981

100.00%

8.30%

20.78%

31.98%

56.67%

82.25%

1982

100.00%

8.91%

21.23%

32.26%

56.79%

82.29%

1983

100.00%

9.29%

21.74%

32.78%

57.22%

82.52%

1984

100.00%

9.66%

22.19%

33.25%

57.56%

82.56%

1985

100.00%

10.03%

22.67%

33.77%

57.97%

82.74%

1986

100.00%

11.30%

24.11%

35.12%

59.04%

83.34%

1987

100.00%

12.32%

25.67%

36.90%

60.75%

84.37%

1988

100.00%

15.16%

28.51%

39.45%

62.44%

85.07%

1989

100.00%

14.19%

27.84%

39.00%

62.28%

85.04%

1990

100.00%

14.00%

27.62%

38.77%

62.13%

84.97%

1991

100.00%

12.99%

26.83%

38.20%

61.85%

84.87%

1992

100.00%

14.23%

28.01%

39.23%

62.47%

85.08%

1993

100.00%

13.79%

27.76%

39.05%

62.45%

85.08%

1994

100.00%

13.80%

27.85%

39.19%

62.64%

85.11%

1995

100.00%

14.60%

28.81%

40.16%

63.37%

85.46%

1996

100.00%

16.04%

30.36%

41.59%

64.32%

85.92%

1997

100.00%

17.38%

31.79%

42.83%

65.05%

86.16%

1998

100.00%

18.47%

32.85%

43.77%

65.63%

86.33%

1999

100.00%

19.51%

34.04%

44.89%

66.46%

86.75%

2000

100.00%

20.81%

35.30%

46.01%

67.15%

87.01%

Total Income Tax Share
(Percentage of Federal Income Tax collections paid by each group)

 

Total

Top 1%

Top 5%

Top 10%

Top 25%

Top 50%

1980

100.00%

19.05%

36.84%

49.28%

73.02%

92.95%

1981

100.00%

17.58%

35.06%

47.96%

72.29%

92.55%

1982

100.00%

19.03%

36.13%

48.59%

72.50%

92.65%

1983

100.00%

20.32%

37.26%

49.71%

73.10%

92.83%

1984

100.00%

21.12%

37.98%

50.56%

73.49%

92.65%

1985

100.00%

21.81%

38.78%

51.46%

74.06%

92.83%

1986

100.00%

25.75%

42.57%

54.69%

76.02%

93.54%

1987

100.00%

24.81%

43.26%

55.61%

76.92%

93.93%

1988

100.00%

27.58%

45.62%

57.28%

77.84%

94.28%

1989

100.00%

25.24%

43.94%

55.78%

77.22%

94.17%

1990

100.00%

25.13%

43.64%

55.36%

77.02%

94.19%

1991

100.00%

24.82%

43.38%

55.82%

77.29%

94.52%

1992

100.00%

27.54%

45.88%

58.01%

78.48%

94.94%

1993

100.00%

29.01%

47.36%

59.24%

79.27%

95.19%

1994

100.00%

28.86%

47.52%

59.45%

79.55%

95.23%

1995

100.00%

30.26%

48.91%

60.75%

80.36%

95.39%

1996

100.00%

32.31%

50.97%

62.51%

81.32%

95.68%

1997

100.00%

33.17%

51.87%

63.20%

81.67%

95.72%

1998

100.00%

34.75%

53.84%

65.04%

82.69%

95.79%

1999

100.00%

36.18%

55.45%

66.45%

83.54%

96.00%

2000

100.00%

37.42%

56.47%

67.33%

84.01%

96.09%

Dollar Cut Off

 

Total

Top 1%

Top 5%

Top 10%

Top 25%

Top 50%

1980

0

80,580

43,792

35,070

23,606

12,936

1981

0

85,428

47,845

38,283

25,655

14,000

1982

0

89,388

49,284

39,676

27,027

14,539

1983

0

93,512

51,553

41,222

27,827

15,044

1984

0

100,889

55,423

43,956

29,360

15,998

1985

0

108,134

58,883

46,322

30,928

16,688

1986

0

118,818

62,377

48,656

32,242

17,302

1987

0

139,289

68,414

52,921

33,983

17,768

1988

0

157,136

72,735

55,437

35,398

18,367

1989

0

163,869

76,933

58,263

36,839

18,993

1990

0

167,421

79,064

60,287

38,080

19,767

1991

0

170,139

81,720

61,944

38,929

20,097

1992

0

181,904

85,103

64,457

40,378

20,803

1993

0

185,715

87,386

66,077

41,210

21,179

1994

0

195,726

91,226

68,753

42,742

21,802

1995

0

209,406

96,221

72,094

44,207

22,344

1996

0

227,546

101,141

74,986

45,757

23,174

1997

0

250,736

108,048

79,212

48,173

24,393

1998

0

269,496

114,729

83,220

50,607

25,491

1999

0

293,415

120,846

87,682

52,965

26,415

2000

0

313,469

128,336

92,144

55,225

27,682

Average Tax Rate (percentage)

 

Total

Top 1%

Top 5%

Top 10%

Top 25%

Top 50%

1980

15.31%

34.47%

26.85%

23.49%

19.72%

17.29%

1981

15.76%

33.37%

26.59%

23.64%

20.11%

17.73%

1982

14.72%

31.43%

25.05%

22.17%

18.79%

16.57%

1983

13.79%

30.18%

23.64%

20.91%

17.62%

15.52%

1984

13.68%

29.92%

23.42%

20.81%

17.47%

15.35%

1985

13.73%

29.86%

23.50%

20.93%

17.55%

15.41%

1986

14.54%

33.13%

25.68%

22.64%

18.72%

16.32%

1987

13.12%

26.41%

22.10%

19.77%

16.61%

14.60%

1988

13.21%

24.04%

21.14%

19.18%

16.47%

14.64%

1989

13.12%

23.34%

20.71%

18.77%

16.27%

14.53%

1990

12.95%

23.25%

20.46%

18.50%

16.06%

14.36%

1991

12.75%

24.37%

20.62%

18.63%

15.93%

14.20%

1992

12.94%

25.05%

21.19%

19.13%

16.25%

14.44%

1993

13.32%

28.01%

22.71%

20.20%

16.90%

14.90%

1994

13.50%

28.23%

23.04%

20.48%

17.15%

15.11%

1995

13.86%

28.73%

23.53%

20.97%

17.58%

15.47%

1996

14.34%

28.87%

24.07%

21.55%

18.12%

15.96%

1997

14.48%

27.64%

23.62%

21.36%

18.18%

16.09%

1998

14.42%

27.12%

23.63%

21.42%

18.16%

16.00%

1999

14.85%

27.53%

24.18%

21.98%

18.66%

16.43%

2000

15.26%

27.45%

24.42%

22.34%

19.09%

16.86

Back to TOP

Who Pays Income Taxes and how much?
 
Percentiles Ranked by AGI AGI Threshold on Percentiles Percentage of Federal Personal Income Tax Paid
     
Tax Year 2008
     
Top 1% $380,354 38.02
Top 5% $159,619 58.72
Top 10% $113,799 69.94
Top 25% $67,280 86.34
Top 50% $33,048 97.3
Bottom 50% <$33,048 2.7

 

Who Pays Income Taxes and how much?
 
Percentiles Ranked by AGI AGI Threshold on Percentiles Percentage of Federal Personal Income Tax Paid
     
Tax Year 2007
     
Top 1% $410,096 40.42
Top 5% $160,041 60.63
Top 10% $113,018 71.22
Top 25% $66,532 86.59
Top 50% $32,879 97.11
Bottom 50% <$32,879 2.89

 

Who Pays Income Taxes and how much?
 
Percentiles Ranked by AGI AGI Threshold on Percentiles Percentage of Federal Personal Income Tax Paid
     
Tax Year 2006
     
Top 1% $388,806 39.89
Top 5% $153,542 60.14
Top 10% $108,904 70.79
Top 25% $64,702 86.27
Top 50% $31,987 97.01
Bottom 50% <$31,987 2.99

 

 
For Tax Year 2005
 
Top 1% $364,657 39.38
Top 5% $145,283 59.67
Top 10% $103,912 70.3
Top 25% $62,068 85.99
Top 50% $30,881 96.93
Bottom 50% <$30,881 3.07

 

 
For Tax Year 2004
 
Top 1% $328,049 36.89
Top 5% $137,056 57.13
Top 10% $99,112 68.19
Top 25% $60,041 84.86
Top 50% $30,122 96.7
Bottom 50% <$30,122 3.3

 

 
 For Tax Year 2003
 
Top 1% $295,495 34.27
Top 5% $130,080 54.36
Top 10% $94,891 65.84
Top 25% $57,343 83.88
Top 50% $29,019 96.54
Bottom 50% <$29,019 3.46

 

 
 For Tax Year 2002
 
Top 1% $285,424 33.71
Top 5% $126,525 53.8
Top 10% $92,663 65.73
Top 25% $56,401 83.9
Top 50% $28,654 96.5
Bottom 50% <$28,654 3.5

 

 
 For Tax Year 2001
 
Top 1% $292,913 33.89
Top 5% $127,904 53.25
Top 10% $92,754 64.89
Top 25% $56,085 82.9
Top 50% $28,528 96.03
Bottom 50% <$28,528 3.97

 

 
 For Tax Year 2000
 
Top 1% $313,469 37.42
Top 5% $128,336 56.47
Top 10% $92,144 67.33
Top 25% $55,225 84.01
Top 50% $27,682 96.09
Bottom 50% <$27,682 3.91

 

 
 For Tax Year 1999
 
Top 1% $293,415 36.18
Top 5% $120,846 55.45
Top 10% $87,682 66.45
Top 25% $52,965 83.54
Top 50% $26,415 96
Bottom 50% <$26,415 4

 

Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service

These data current on 12/12/2010

 
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