Who Pays TaxesSubmitted by Karstens Investments on February 1st, 2016
January 30, 2016
According to new IRS statistics, the top 1 percent of individual filers paid 37.8 percent of all federal income taxes in 2013, the most recent year IRS has analyzed. That’s down from 38.1 percent the previous year. The top 1 percent of earners reported 19 percent of total adjusted gross income (AGI), slightly lower than the year before. They needed AGIs of at least $428,713 to earn their way into the top 1 percent category.
The highest 5 percent of earners paid 58.6 percent of total income tax and accounted for 34.4 percent of all adjusted gross income. They each had AGI of at least $179,760. The top 10 percent of filers, those with AGIs of $127,695 or more, bore 69.8 percent of the income tax burden while bringing in slightly less than 46 percent of individuals’ total adjusted gross income.
The bottom 50 percent of filers paid 2.8 percent of the total federal income tax take. Their share is so low because the figures don’t include Social Security tax payments and because many of them get substantial tax relief through the earned income credit. •
All “Who Pays Taxes” information according to The Kiplinger Tax Letter.