BTW Terry, if you go to the IRS website, you will see that taxes have increased on the top earners, not decreased. Read Below (if this doesn't come out right, go to
http://www.treasury.gov/press/releases/reports/factshee...cometaxes.update.pdf
DEPARTMENT OF THE TREASURY
Office of Public Affairs
March 2, 2005
FACT SHEET:
Who Pays the Most Individual Income Taxes?
The individual income tax is highly progressive – a small group of higher-income
taxpayers pay most of the individual income taxes each year.
• In 2002 the latest year of available data, the top 5 percent of taxpayers paid more than
one-half (53.8 percent) of all individual income taxes, but reported roughly one-third
(30.6 percent) of income.
• The top 1 percent of taxpayers paid 33.7 percent of all individual income taxes in
2002. This group of taxpayers has paid more than 30 percent of individual income
taxes since 1995. Moreover, since 1990 this group’s tax share has grown faster than
their income share.
• Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all
individual income taxes. In all years since 1990, taxpayers in this group have paid
over 94 percent of all individual income taxes. In 2000, 2001, and 2002, this group
paid over 96 percent of the total.
The President’s tax cuts have shifted a larger share of the individual income taxes paid to
higher income taxpayers. In 2005, when most of the tax cut provisions are fully in effect
(e.g., lower tax rates, the $1,000 child credit, marriage penalty relief), the projected tax
share for lower-income taxpayers will fall, while the tax share for higher-income taxpayers
will rise.
• The share of taxes paid by the bottom 50 percent of taxpayers will fall from 4.1
percent to 3.6 percent.
• The share of taxes paid by the top 1 percent of taxpayers will rise from 32.3 percent to
33.7 percent.
• The average tax rate for the bottom 50 percent of taxpayers falls by 27 percent as
compared to a 13 percent decline for taxpayers in the top 1 percent.
Share of Individual Income Taxes and Income, 1990-2002
Share of Individual Income Taxes
[Share of Adjusted Gross Income]
Top 1% Top 5% Top 10% Top 25% Top 50% Bottom
50%
2002 33.7
[16.1]
53.8
[30.6]
65.7
[41.8]
83.9
[64.4]
96.5
[85.8]
3.5
[14.2]
2000
37.4
[20.8]
56.5
[35.3]
67.3
[46.0]
84.0
[67.2]
96.1
[87.0]
3.9
[13.0]
1995
30.3
[14.6]
48.9
[28.8]
60.8
[40.2]
80.4
[63.4]
95.4
[85.5]
4.6
[14.5]
1990 25.1
[14.0]
43.6
[27.6]
55.4
[38.8]
77.0
[62.1]
94.2
[85.0]
5.8
[15.0]
Source: Internal Revenue Service. Percentiles based on adjusted gross income.
Projected Share of Individual Income Taxes and Income in 2005
Share of Individual Income Taxes1
[Share of Adjusted Gross Income]
Top
1%
Top
5%
Top
10%
Top
25%
Top
50%
Bottom
50%
With Tax
Cuts
33.7
[16.5]
54.1
[31.0]
65.8
[42.1]
83.6
[64.7]
96.4
[86.1]
3.6
[13.9]
Without
Tax Cuts
32.3
[16.5]
51.7
[31.0]
63.6
[42.1]
82.4
[64.7]
95.9
[86.1]
4.1
[13.9]
Source: U.S. Treasury, Office of Tax Analysis.
1Estimates of taxes paid ignore any behavioral responses to the
tax cuts.