DISTRIBUTION OF INCOME AND FEDERAL TAXES UNDER CURRENT LAW IN 2000
Percent of Total
Family --------------------------------------------------------------------------
Economic Family Family Total
Income Economic Cash Federal Individual Corporate Estate
Quintile Income Income Taxes Income Income Payroll Excises^ & Gift
-------- ------- ------- ------- --------- -------- ------- ------- -------
Lowest* 2.7 2.9 0.7 -0.6 1.1 2.3 2.0 0.0
Second 7.2 7.7 3.9 0.5 4.3 7.9 6.7 0.0
Third 12.6 13.1 10.2 6.9 9.2 14.9 12.8 0.0
Fourth 21.3 21.1 19.9 16.3 14.9 26.4 22.1 0.8
Highest 56.7 55.5 65.1 76.6 70.6 48.3 56.3 99.2
Top 10% 40.5 39.7 48.5 61.3 59.1 28.2 39.6 96.2
Top 5% 29.5 28.8 36.5 49.1 49.7 15.4 28.4 91.0
Top 1% 14.8 15.1 20.1 29.5 30.3 4.0 13.9 64.2
Total* 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
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Percent above(+) or below(-) a flat tax based on Family Economic Income
Family
Economic Family Family Total
Income Economic Cash Federal Individual Corporate Estate
Quintile Income Income Taxes Income Income Payroll Excises^ & Gift
-------- ------- ------- ------- --------- -------- ------- ------- -------
Lowest* 0 7 -74 -122 -59 -15 -26 -100
Second 0 7 -46 -93 -40 10 -7 -100
Third 0 4 -19 -45 -27 18 2 -100
Fourth 0 -1 -7 -23 -30 24 4 -96
Highest 0 -2 15 35 25 -15 -1 75
Top 10% 0 -2 20 51 46 -30 -2 138
Top 5% 0 -2 24 66 68 -48 -4 208
Top 1% 0 2 36 99 105 -73 -6 334
Total* 0 0 0 0 0 0 0 0
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FEDERAL TAXES AS A PERCENT OF FAMILY ECONOMIC INCOME UNDER CURRENT LAW IN 2000
Family Family Percent of Family Economic Income
Family Economic Cash -------------------------------------------------------
Economic Income Income Total
Income Lower Lower Federal Individual Corporate Estate
Quintile Limit Limit Taxes Income Income Payroll Excises^ & Gift
-------- ------- ------- ------- --------- -------- ------- ------- -------
Lowest* $0 $0 5.9 -2.4 0.9 6.7 0.7 0.0
Second 17,988 16,426 11.7 0.8 1.4 8.7 0.8 0.0
Third 34,844 30,964 17.4 5.6 1.6 9.3 0.9 0.0
Fourth 59,019 49,862 20.1 7.8 1.6 9.8 0.9 0.0
Highest 100,767 81,967 24.6 13.7 2.8 6.7 0.9 0.5
Top 10% 140,581 115,239 25.7 15.4 3.3 5.5 0.9 0.7
Top 5% 189,835 154,900 26.6 16.9 3.8 4.1 0.9 0.9
Top 1% 462,053 346,555 29.1 20.2 4.6 2.1 0.9 1.3
Total* 21.5 10.1 2.3 7.9 0.9 0.3
^ Includes customs duties.
* Families with negative incomes are excluded from the lowest quintile but
included in the total line.
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Components of Family Economic Income in 2000 $ billion
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Adjusted Gross Income (AGI).......................................... 5,649
unreported and underreported income (includes AGI of nonfilers)...... 744
adjustment from a realization to an accrual-based valuation of assets 127
income not included in AGI
labor income........................................................ 974
capital income...................................................... 335
transfer income..................................................... 460
costs of earning income disallowed in AGI............................. -44
adjustments to exclude income earned/losses incurred in previous years 58
adjustments for inflation & econ. depreciation on non-corporate assets 115
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Total Family Economic Income (FEI)................................... 8,419
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Components of Family Cash Income in 2000
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Family Cash Income consists of wages and salaries, net income from a business
or farm, taxable and tax-exempt interest, dividends, rental income, realized
capital gains, cash transfers from the government, and retirement benefits.
Employer contributions for payroll taxes and the federal corporate income tax
is added to place cash income on a pre-tax basis.
Source: U.S. Treasury, Distributional Analysis Methodology, September 1999,
tables 3, 9, and 12 (online at http://www.ustreas.gov/ota/ota85.pdf )
