Sunday, November 17, 2013

Who Pays Income Taxes?

At left, is a typical distribution table for federal income taxes in 2013 from the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, that generally follows the Treasury’s methodology. These data do not include other taxes such as the payroll tax, corporate tax or estate tax.

The table shows the share of total income taxes paid; a negative number indicates that a particular income group gets a net refund from programs like the earned income tax credit. In aggregate, households earning less than $50,000 pay no federal income taxes and those making more than $1 million pay 34.2 percent of all federal income taxes.