The Distribution of Household Income and Federal Taxes, 2008 and 2009
July 10, 2012
Updated: On August 10, 2012, the supplemental data spreadsheet was reposted with a correction (in Table 5, to the 2009 value for market income, adjusted for household size), along with a few explanatory notes (to Tables 5, 9, and 13).
The recent recession has had a substantial impact on income, the amount of taxes owed, and average tax rates. Changes in households’ before-tax income and average tax rates in 2008 and 2009 were substantial and differed markedly across the income distribution. Average after-tax income fell notably, owing to a drop in market income caused by the recession that began in December 2007 that was only partially offset by increases in government transfers and decreases in federal taxes.
In this report CBO extends its estimates of the distribution of household income and federal taxes through 2008 and 2009, the latest year for which comprehensive data are available, and compares those estimates with estimates for 2007 and for the 1979–2009 period.
Average before-tax income fell between 2007 and 2009 for households in all income quintiles, but the amount of that decline varied by quintile. The declines in before-tax income were 5 percent or less for households in each of the four lowest income quintiles and 18 percent for households in the top quintile. For households in the top one percent, income fell by 36 percent, reducing their share of before-tax income from 18.7 percent to 13.4 percent.
http://www.cbo.gov/publication/43373
The recent recession has had a substantial impact on income, the amount of taxes owed, and average tax rates. Changes in households’ before-tax income and average tax rates in 2008 and 2009 were substantial and differed markedly across the income distribution. Average after-tax income fell notably, owing to a drop in market income caused by the recession that began in December 2007 that was only partially offset by increases in government transfers and decreases in federal taxes.
In this report CBO extends its estimates of the distribution of household income and federal taxes through 2008 and 2009, the latest year for which comprehensive data are available, and compares those estimates with estimates for 2007 and for the 1979–2009 period.
Average Before-Tax Income for All Households Fell 12 Percent from 2007 to 2009 in Real (Inflation-Adjusted) Terms
In 2009, the shares of total before-tax income (which includes government transfer payments, such as Social Security benefits) received by households in certain income quintiles were:- Lowest quintile: 5.1 percent
- Middle quintile: 14.7 percent
- Highest quintile: 50.8 percent
Average before-tax income fell between 2007 and 2009 for households in all income quintiles, but the amount of that decline varied by quintile. The declines in before-tax income were 5 percent or less for households in each of the four lowest income quintiles and 18 percent for households in the top quintile. For households in the top one percent, income fell by 36 percent, reducing their share of before-tax income from 18.7 percent to 13.4 percent.
http://www.cbo.gov/publication/43373
Yet they want the upper quintile to pay more even after the added taxes of Obamacare.
ReplyDeleteHow much is enough???
Their whole paycheck or bank account, whichever is more.
DeleteEnough? No such thing, no limit...
ReplyDeleteSo the rocket scientists that want to remove tax shelters for the "rich" such as muni-bonds are just coming to the realization that municipals would have to offer much higher interest rates, thereby increasing costs to local communities and either pushing up property taxes, local sales taxes, civil service cuts or some combination there of.
ReplyDeletemeanwhile, it wouldn't hurt the rich one bit as their tax would be covered by the higher return rate. But the community would suffer.
DeleteI asked and asked, of those who raise the 'fair share' flag, and have received no responses. About as easy as getting an answer to how high is up, or how far is away.
ReplyDeleteI feel for the bottom rungs of the income ladder, but gee, the FIT is already a virtual free ride for sooo many. I can't accept the logic that taking more from those who earn more is a good long term strategy. On the contrary, I think it will exacerbate the situation.
The only people who really believe the rich should pay more are those who pay nothing. I guess they want a raise.
ReplyDeleteWow, whatya know. When you isolate your data to a period when the stock indices lose over half their value, the top one percent sees their pre tax income drop by 35%. WOW THAT'S FUCKING STUNNING! WHO COULD HAVE PREDICTED THAT?
ReplyDeleteImplicit in many expressions of the right is a view that the rich are rich because they are fundamentally better and smarter then everyone else and conversely, the poor are poor because they don't want to work. Your comment Jean is the epitome if both good trolling and the deeply held conservative belief that if profit is more equitably distributed, it is nothing more then taking away a deserved gain in order to hand it to some undeserved slob at the bottom rungs who you so graciously "feel for".
What is wrong with a view like this one? http://www.washingtonpost.com/opinions/what-i-built--with-government-help/2012/08/17/ecc86b24-e885-11e1-936a-b801f1abab19_story.html Somewhere between communism and no rules at all capitalism has to be a better economic balance then what we have now.