The Distribution of Federal Taxes

The Congressional Budget Office released a report explaining that the top quintile of earners represent 67.9% of total tax liabilities, while they constitute 50.8% of total before-tax income. In contrast, the middle quintile represents 9.4% of tax liabilities, while they constitute 14.7% of taxable income.

Normative arguments aside, this means that the top 20% of earners contribute a proportionally larger share of their income to taxes than does the middle 20%.

Tax Distribution

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s