Effective Income Tax Rates: Now isn’t this interesting.
Wednesday, January 25, 2012 at 1:50PM Scott A. Hodge, at the Tax Foundation, has compiled a very interesting table which was sourced out of IRS tax statistics for 2009.
Hodge states "[f]or the entire universe of American taxpayers, the average tax rate is 11 percent of our AGI. The highest average tax rate paid by anyone earning under $100,000 is 8 percent. That shows the power of the sundry tax credits available to the 'middle-class'."
In President Obama's January 24, 2011 State of the Union address, he proposed a new 30% Alternative Minimum Tax (AMT) on households with income of more than $1M per year. Evidently this can be accomplished by limiting deductions to those taxpayers. More here.
It appears that returns with less than $100,000.00 of income constitute 87.5% of all returns. That means that 87.5% of Americans pay an average effective rate of 8% or less.
President Obama has now proposed an effective minimum rate of 30% for all incomes over $1M.
Table from Tax Foundation
|
Income Tax Summary Statistics for 2009 |
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|
All Returns |
AGI ($Billions) |
Taxable Returns |
Income Tax After Credits ($Billions) |
Average Tax Rate |
Share of total taxes |
Share of all AGI |
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|
All returns, total |
140,494,127 |
$7,626 |
81,890,189 |
$865.9 |
11% |
100% |
100% |
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|
No adjusted gross income |
2,511,925 |
($199) |
3,820 |
$0.1 |
0.0% |
0% |
-3% |
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|
$1 under $5,000 |
10,447,635 |
$27 |
306,587 |
$0.0 |
0.1% |
0% |
0% |
|||
|
$5,000 under $10,000 |
12,220,335 |
$92 |
1,899,331 |
$0.4 |
0.4% |
0% |
1% |
|||
|
$10,000 under $15,000 |
12,444,512 |
$155 |
2,883,906 |
$0.8 |
1% |
0% |
2% |
|||
|
$15,000 under $20,000 |
11,400,228 |
$199 |
4,868,050 |
$2.5 |
1% |
0% |
3% |
|||
|
$20,000 under $25,000 |
10,033,887 |
$225 |
4,639,085 |
$4.7 |
2% |
1% |
3% |
|||
|
$25,000 under $30,000 |
8,662,392 |
$238 |
4,603,763 |
$6.8 |
3% |
1% |
3% |
|||
|
$30,000 under $40,000 |
14,371,647 |
$500 |
9,589,845 |
$20.2 |
4% |
2% |
7% |
|||
|
$40,000 under $50,000 |
10,796,412 |
$483 |
8,381,017 |
$25.4 |
5% |
3% |
6% |
|||
|
$50,000 under $75,000 |
18,694,893 |
$1,149 |
16,449,393 |
$78.0 |
7% |
9% |
15% |
|||
|
$75,000 under $100,000 |
11,463,725 |
$990 |
10,987,101 |
$80.5 |
8% |
9% |
13% |
|||
|
$100,000 under $200,000 |
13,522,048 |
$1,801 |
13,374,553 |
$212.3 |
12% |
25% |
24% |
|||
|
$200,000 under $500,000 |
3,195,039 |
$905 |
3,178,420 |
$176.3 |
19% |
20% |
12% |
|||
|
$500,000 under $1,000,000 |
492,567 |
$332 |
489,904 |
$80.5 |
24% |
9% |
4% |
|||
|
$1,000,000 under $1,500,000 |
108,096 |
$130 |
107,416 |
$32.8 |
25% |
4% |
2% |
|||
|
$1,500,000 under $2,000,000 |
44,273 |
$76 |
44,015 |
$19.4 |
25% |
2% |
1% |
|||
|
$2,000,000 under $5,000,000 |
61,918 |
$183 |
61,535 |
$46.9 |
26% |
5% |
2% |
|||
|
$5,000,000 under $10,000,000 |
14,322 |
$97 |
14,236 |
$24.6 |
25% |
3% |
1% |
|||
|
$10,000,000 or more |
8,274 |
$240 |
8,211 |
$53.8 |
22% |
6% |
3% |
|||
|
Summary for $1 Million+ |
236,883 |
$726.9 |
235,413 |
$177.5 |
25% |
20% |
10% |
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|
Source: IRS 2009 Data, Table 1.2 http://www.irs.gov/pub/irs-soi/09in12ms.xls |
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