Tax Rate vs % of Federal Revenue
September 24, 2006 · Filed under: Mailbag
Reader Ed Graham asks:
I have tried to find without success the percent of federal revenue from personal income taxes paid by each tax bracket. I searched the Treasury, IRS & CBO websites and could not find this number. Can you steer me where to find it?
Suggestions, anyone?
4 Responses to “Tax Rate vs % of Federal Revenue”
http://www.irs.gov/pub/irs-soi/03inrate.pdf
Table 5, page 49.
My apology, the reference above is to quintile, not tax bracket. For info by tax bracket look at the same report, table 1, page 39.
Not unexpectedly, Taxprof has a better handle on this data than I do
Since federal income tax account for ~60% of revenue be sure to include who pays what in payroll tax (per the Heritage Foundation – Workers with pre-OASDI incomes from $17,813 to $27,732 have the highest average effective Social Security tax rate (10.3 percent). 11 Workers in the highest income group have the lowest tax rate (6.7 percent).
Remember kids – Bill Gates pays next to nothing in payroll tax. So the next time you hear the inane question “who pay all the taxes in America” you can answer – the rich pay most of 60% and pay next to nothing when it comes to the remaining 40%.
According to Adam Smith – currently the rich don’t pay their share.