distribution of income in america
TRANSCRIPT
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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%
Income Distribution 2007
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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How Much Money do US CitizenMake
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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How Much Money do US CitizenMake
$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%
Income Distribution 1980
13%
20%
22%11%
35%
Income Distribution 2008
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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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What Do People Spend Money O
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What Do People Spend Money O
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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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What Tax Rates do People Pay?
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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What Tax Rates do People Pay?
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