Distribution of Income in America

8/6/2019 Distribution of Income in America

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Sources for this Presentation

The IRS

Individual / Corporate Taxes and Income

www.irs.gov/taxstats

Data on the Top 400 Billionaires

www.irs.gov/pub/irs-soi/08intop400.pdf
http://www.irs.gov/pub/irs-soi/08intop400.pdfhttp://www.irs.gov/taxstatshttp://www.irs.gov/pub/irs-soi/08intop400.pdfhttp://www.irs.gov/pub/irs-soi/08intop400.pdfhttp://www.irs.gov/taxstatshttp://www.irs.gov/taxstats


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Income Changes from 1947 - 20

$0

$28,571

$57,143

$85,714

$114,286

$142,857

$171,429

$200,000

1947 1950 1960 1970 1980 1990 1995 2


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Income Distribution 1947 vs. 20

39%

24%

17%

12%

8%

Income Distribution 1947

43%

24%

16%

11%

6%


Bot

25-

50-

75-

Top


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How Much Money do US CitizenMake

0

3,250

6,500

9,750

13,000

1989 1992 1995 1998200120042007

Average Income of Bottom 20%

0

7,250

14,500

21,750

29,000

1989 1992 1995 1998 2001 2004 2007

Average Income of Next 20-40%

0

12,000

24,000

36,000

48,000

1989 1992 1995 1

Average Incom


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0

20,000

40,000

60,000

80,000

1989 1995 2001 2007

Average Income of Next 60-80%

0

30,000

60,000

90,000

120,000

1989 1995

Average Income

0

100,000

200,000

300,000

400,000

1989 1995 2001 2007

Average Income of Top 10%


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$0

$283,333

$566,667

$850,000

$1,133,333

$1,416,667

$1,700,000

1989 1992 1995 1998 2001 2004 2007

Average Income of Top 1%

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

1989 1992 1995 1998 200

Average Income of


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Income of All US CorporationsCombined

$0

$185,714,285,714

$371,428,571,429

$557,142,857,143

$742,857,142,857

$928,571,428,571

$1,114,285,714,286

$1,300,000,000,000

1992 1995 1998 2001 2004 2007

Income of All US Corporations Combined


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Breakdown of Incomes

Year B 20% 20 40% 40 60% 60 80% 80 90% Top 10% Top 1

1989 $9,600 $23,600 $41,700 $65,800 $98,400 $273,600 $1,030

1992 $9,500 $23,000 $39,300 $62,600 $92,900 $217,000 $908,

1995 $9,000 $23,700 $40,700 $62,600 $94,100 $237,000 $805,

1998 $10,100 $25,700 $43,300 $69,100 $101,300 $279,500 $1,038

2001 $11,700 $28,200 $47,100 $76,200 $114,700 $354,100 $1,474

2004 $11,900 $28,600 $47,700 $76,000 $117,000 $331,900 $1,225

2007 $12,300 $28,300 $47,300 $76,600 $116,000 $397,700 $1,670


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How Many Times Have IncomeDoubled (1980-2008)

Top 1% : 12.21

Top 5% : 8.56

5-10% : 5.13

10-25% : 4.56

25-50% : 4.01

Bottom 50% : 3.73


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Income Distribution (1980-200

0

100000

200000

300000

400000

500000

600000

700000

1989 1992 1995 1998 2001 2004 2007

Income Distribution (1989 - 2007)

0

1500

3000

4500

6000

7500

9000

1980 1983 1986 1989 1992 1995 1998 200

Income Distribution Billions 19


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Income Distribution 1980 vs. 20

18%

26%

25%

11%

21%


13%

20%

22%11%

35%



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What Percentage of Top 5% of IncGoes to the Top 1%

40.00%

47.50%

55.00%

62.50%

70.00%

1989 1992 1995 1998 2001 2004

Percentage of Income Received by the Top 1% in Comparison to the Total Top 5%


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Corporate Income Changes (AftDeductions) 1980 2008

$0

$50,000,000,000

$100,000,000,000

$150,000,000,000

$200,000,000,000

$250,000,000,000

$300,000,000,000

$350,000,000,000

$400,000,000,000

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004


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Percentage of Corporate Income thTaxed After Deductions

0%

8%

15%

23%

30%

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Corporations spendincome & pay taxes on

whats left Regular people pay taxeson income & live off ofwhat is left


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What Do People Spend Money O


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Taxation in the US

Tax Rate Married Filing Jointly Single Filers

10% Not over $16,750 Not over $8,37

15% $16,751 - $68,000 $8,376 - $34,00

25% $68,001 - $137,300 $34,001 - $82,4

28% $137,301 - $209,250 $82,401 - $171,8

33% $209,251 - $373,650 $171,851 - $373,6

35% Over $373,651 Over $373,651


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What Tax Rates do People Pay?

0.100

0.110

0.120

0.130

0.140

2001 2002 2003 2004 2005 2006 2007 2008

Federal Taxation on the Top .1% (.35)

0

0.100

0.200

0.300

0.400

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on the Top 1% (.35)

0

0.068

0.135

0.203

0.270

1980 1984 1988 19

Federal Taxati


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0

0.045

0.090

0.135

0.180

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on the Top 5 - 10% (.30)

0

0.040

0.080

0.120

0.160

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on the Top 10 - 25% (.30)

0

0.033

0.065

0.098

0.130

1980 1984 1988 1992

Federal Taxation on


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0

0.018

0.035

0.053

0.070

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on the Bottom 50% (12.5)

0

0.075

0.150

0.225

0.300

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on All Corporations (.35)

0

0.06

0.11

0.17

0.22

1992 1995 1998

Tax Rate of the

H M h T R L


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How Much Tax Revenue was Lost2008?

Amount Not Paid by Top 50% : $1.201 Trillion

Amount Not Paid by Bottom 50% : $106.375 Billion

Corporations Taxable Income: $978,152,640,000

Corporations Taxes at 35%: $342,353,424,000

Corporate Taxes paid: $228,522,752,000

Amount Not Paid by Corporations: $113.83 Billion


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State Average Tax

Highest

Hawaii: $1,832

Washington: $1,571

Nevada: $1,268

Wyoming: $1,213

Tennessee: $1,068

Lowest

Alaska: $0

Delaware: $0

Montana: $0

New Hampshire: $

Oregon: $0


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State Tax Rates

Highest

California: 8.25%

Indiana: 7%

Mississippi: 7.0%

New Jersey: 7.0%

Rhode Island: 7.0%

Lowest

Alaska: 0%

Delaware: 0%

Montana: 0%

New Hampshire: 0

Oregon: 0%


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State Local Tax Rates

Highest

Louisiana: 4.69%

New York: 4.52%

Colorado: 4.08%

Alabama: 4.03%

Oklahoma: 3.83%

Connecticut, DelawaIndiana, Kentucky,Maine, Maryland,Massachusetts,Michigan, Mississipp

Montana, NewHampshire, NewJersey, Oregon,

Vermont, Virginia, WVirginia


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Gas State Tax

Highest

California: .47

New York: .45

Hawaii: .44

Connecticut: .42

Illinois: .39

Lowest

Alaska: .08

Georgia: .12

Wyoming: .14

New Jersey: .15

Missouri: .17


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Estate Taxes in US

Estate taxes are levied to avoid the creation of an elite grou

99.7% of estates owe no estate taxes at all - Brookings Tax PCenter

1.3% of the small number above are small business or farm(.003%)

These large estates are comprised to a large degree with uncapital gains that have never been taxed


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Estate Taxes in US

The increase in the value of an asset is never subject to incoif the asset is held until a person dies (Double Taxation Arg

2001 Estate Tax: Up to $675,000 Exempt / 55% Tax Rate

2002 - 2010: Estate Tax fell from 55% t0 45% (0% in 2010)Estimated loss of $700 Billion to over a Trillion

2011 Estate Tax: Up to $5,000,000 Exempt / 35% Tax Rate


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The Elite 403 Bil lionaires

Forbes 400: $1,707,250,000,000 estimated total Net Wort

Total income of the 400 (2008): $109,736,000,000

Avg income of the 400 (2008): $274,340,000

Percentage of Income Taxed for th


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Percentage of Income Taxed for th403

0.640

0.660

0.680

0.700

0.720

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20

Where Does the Top 403 Income C


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Where Does the Top 403 Income CFrom?

1992 2008

47%

8%9%

36%

WIDC

C

1112

68%

11%

8%

13%

Lost Tax Revenue Because of 20


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Lost Tax Revenue Because of 20Lowering of Taxes

2003

2004

2005

2006

2007

2008

$0 $2,857,143 $5,714,286 $8,571,429 $11,428,571 $14,285,714 $17,142,8

Lost Reven$65,558,00


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Top 403 Incomes vs. Bottom 80

1992: Average Income of Households 80% - $33,600

1992: Average Income of 400 - $61,052,500 (1,817 Times)

2008: Average Income of Households 80% - $41,125

2008: Average Income of 400 - $274,340,000 (6,670 Time

How Much Does Social Security Pa


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How Much Does Social Security PaRetirees

$1,077.20 Avg. Income on SS ($6.73 / hr)

- $115.40 Medicare costs / month

- $208.00 Least Expensive Medicare Supplement I foundmonth

- $40.00 Medicare part D costs / month

- $208.00 Avg. Monthly Food Cost

- $625.00 Avg. Monthly Housing Cost

Documents

Distribution of Income in America