Download - 50 - University of California, Berkeley
010
2030
4050
6070
8090
100
Mar
gina
l Tax
Rat
es (%
)
05
1015
2025
Top
1% In
com
e Sh
are
(%)
1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013Year
Top 1% (excluding Capital Gains) Top MTR
Top 1% Reported Income Share and Top MTR
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1913
1918
1923
1928
1933
1938
1943
1948
1953
1958
1963
1968
1973
1978
1983
1988
1993
1998
2003
2008
Top
MTR
(Fed
eral
Indi
vidu
al In
com
e Ta
x)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US Top MTR ordinary income vs. capital gains
Top MTR Top MTR (capital gains)
Source: statistics computed by the author
Source: Department of the Treasury, Office of Tax Analysis
0%
2%
4%
6%
8%
10%
12%
1916
19
21
1926
19
31
1936
19
41
1946
19
51
1956
19
61
1966
19
71
1976
19
81
1986
19
91
1996
20
01
2006
20
11
Capital Gains
Capital Income
Business Income
Salaries
Source: Piketty and Saez, 2003 updated to 2013. Series based on pre-tax cash market income including or excluding realized capital gains, and always excluding government transfers.
US Top 0.1% Pre-‐Tax Income Share and Composi:on
Source: Goolsbee (2000), p. 365
The Top 0.01% US Income Share, Composition, and MTR
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%19
6019
6219
6419
6619
6819
7019
7219
7419
7619
7819
8019
8219
8419
8619
8819
9019
9219
9419
9619
9820
0020
0220
0420
06
Top
0.01
% s
hare
and
com
posi
tion
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Mar
gina
l Tax
Rat
e fo
r the
top
0.01
%
Wages S-Corp.
Partnership Sole Prop.
Dividends Interest
Other MTR
Source: Saez et al. (2010)
AustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustralia
CanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanada
DenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmark
FinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinland FranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFrance
GermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermany
IrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIreland
ItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItaly
JapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapan
NetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlands
NZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorway
PortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugal
SpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpain
SwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSweden
SwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerland
UKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUS
Elasticity= .07 (.15)
46
81
01
21
41
61
8T
op
1%
In
co
me
Sh
are
(%
)
40 50 60 70 80 90Top Marginal Tax Rate (%)
A. Top 1% Share and Top Marginal Tax Rate in 1960−4
Source: Piketty, Saez & Stantcheva (2011)
AustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustralia
CanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanada
DenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmark
FinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFrance
GermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIreland
ItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItaly
JapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapan
NetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlands
NZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZ
NorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorway
PortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugal
SpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpain
SwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSweden
SwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerland
UKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUK
USUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUS
Elasticity= 1.90 (.43)
46
81
01
21
41
61
8T
op
1%
In
co
me
Sh
are
(%
)
40 50 60 70 80 90Top Marginal Tax Rate (%)
B. Top 1% Share and Top Marginal Tax Rate in 2005−9
Source: Piketty, Saez & Stantcheva (2011)
AustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustralia
CanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanada
DenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmark
FinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinland
FranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFrance
GermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermany
IrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIreland
ItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItaly
JapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapan
NetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlands
NZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZ
NorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugal
SpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpain
SwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSweden
SwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerland
UKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUK
USUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSElasticity= .47 (.11)
02
46
81
0C
ha
ng
e in
To
p 1
% I
nco
me
Sh
are
(p
oin
ts)
−40 −30 −20 −10 0 10Change in Top Marginal Tax Rate (points)
Change in Top Tax Rate and Top 1% Share, 1960-4 to 2005-9
Source: Piketty, Saez & Stantcheva (2011)
010
2030
4050
6070
8090
100
Mar
gina
l Tax
Rat
es (%
)
05
1015
2025
Top
1% In
com
e Sh
ares
(%)
1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013Year
Top 1% (incl. KG) Top MTRTop 1% (excl. KG) MTR K gains
Tax Avoidance: Top 1% Income Shares and Top MTR
010
2030
4050
6070
8090
100
Mar
gina
l Tax
Rat
e (%
)
010
020
030
040
050
0R
eal I
ncom
e pe
r adu
lt (1
913=
100)
1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013Year
Top 1% Top MTRBottom 99%
Top 1% and Bottom 99% Income Growth
AustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanada DenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmark
FinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinland
FranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermany
IrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIreland
ItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItaly
JapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapan
NetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlands
NZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZ
NorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorway
PortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugalPortugal
SpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpainSpain
SwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSwedenSweden
SwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerlandSwitzerland
UKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUKUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUSUS
12
34
GD
P p
er
ca
pita
re
al a
nn
ua
l g
row
th (
%)
−40 −30 −20 −10 0 10Change in Top Marginal Tax Rate (points)
A. Growth and Change in Top Marginal Tax Rate
Change in Top Tax Rate and GDP per capita growth since 1960
AustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaAustraliaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanadaCanada DenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmarkDenmark
FinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinlandFinland
FranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFranceFrance
GermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermanyGermany
IrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIrelandIreland
ItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItalyItaly
JapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapanJapan NetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlandsNetherlands
NZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZNZ
NorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorwayNorway
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12
34
GD
P p
er
ca
pita
re
al a
nn
ua
l g
row
th (
%)
−40 −30 −20 −10 0 10Change in Top Marginal Tax Rate (points)
B. Growth (adjusted for initial 1960 GDP)
Change in Top Tax Rate and GDP per capita growth since 1960
Australia
Belgium
Canada
France
Germany
Ireland
Italy
Netherlands
Norway
Sweden
Switzerland
United Kingdom
United States1
.01
.52
.02
.53
.03
.5C
EO
pa
y($
mill
ion
, lo
g−
sca
le)
.4 .5 .6 .7 .8Top Income Marginal Tax Rate
A. Average CEO compensation
Link between top tax rate and CEO pay in 2006 across countries
Australia
Belgium
Canada
France
Germany
Ireland
Italy
Netherlands
Norway
Sweden
Switzerland
United Kingdom
United States
1.0
1.5
2.0
2.5
3.0
3.5
CE
O p
ay($
mill
ion
, lo
g−
sca
le)
with
co
ntr
ols
.4 .5 .6 .7 .8Top Income Marginal Tax Rate
B. Average CEO compensation with controls
Controlling for firm profitability, governance, size, and industry
Figure 3: Total number of foreigners in different income groups
01
00
02
00
03
00
04
00
0#
of
fore
ign
ers
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
Control 1 Control 2 Treatment
Control 1= annualized income between .8 and .9 of thresholdControl 2= annualized income between .9 and .995 of threshold.
Source: Kleven, Henrik Jacobsen, et al (2013)
0%
20%
40%
60%
80%
100%
0%
5%
10%
15%
20%
25% 19
62
1967
1972
1977
1982
1987
1992
1997
2002
2007
2012
Top
Mar
gina
l Tax
Rat
e
Top
1% In
com
e Sh
are
Top 1% pre-tax income share and top tax rates
Top 1% income share Top MTR (right scale) K gains top MTR
Source: Top 1% income share: Piketty and Saez, 2003 updated to 2015, series including realized capital gains. Top MTR include Federal individual tax + uncapped FICA payroll tax.
0%
2%
4%
6%
8%
10%
12% 19
62
1967
1972
1977
1982
1987
1992
1997
2002
2007
2012
Realized capital gains
Income excluding capital gains
USTop0.1%IncomeShareandComposi7on
Source: Piketty and Saez, 2003 updated to 2015. Series based on pre-tax cash market income including realized capital gains, and always excluding government transfers.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9% 19
62
1967
1972
1977
1982
1987
1992
1997
2002
2007
2012
Dividends
Other capital income
Business income
Salaries
Source: Piketty and Saez, 2003 updated to 2015. Series based on pre-tax cash market income ex cluding realized capital gains, and always excluding government transfers.
USTop0.1%IncomeShareandComposi7on(excl.Kgains)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% 1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
2006
2010
2014Ch
arita
blegivingoftop
1%to
meanincome
Charitable Giving of Top 1% Income Earners
Mean charitable giving of top 1% divided by mean income [left y-axis]
Source: The figure depicts average charitable giving of top 1% incomes (normalized by average income per family) on the left y-axis.
Source: Saez TPE 2017
0%
5%
10%
15%
20%
25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% 1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
2006
2010
2014
Top1%
incomeshare
Charita
blegivingoftop
1%to
meanincome
Charitable Giving of Top 1% Income Earners
Mean charitable giving of top 1% divided by mean income [left y-axis]
Top 1% Income Share [right y-axis]
Source: The figure depicts average charitable giving of top 1% incomes (normalized by average income per family) on the left y-axis. For comparison, the figure reports the top 1% income share (on the right y-axis).
Source: Saez TPE 2017
Emmanuel Saez and Gabriel Zucman 13
is reported on tax returns. Untaxed capital income includes undistributed corpo-rate profits, the imputed rents of homeowners, capital income paid to pension accounts, and dividends and interest retained in trusts, estates, and fiduciaries.
Piketty, Saez, and Zucman (2018) estimate the distribution of 100 percent of national income by combining national accounts, tax, and survey data. As Figure 3 shows, in both fiscal income and national income statistics, the share of income earned by the top 1 percent was high before the 1930s and fell from the 1930s to the 1970s before rising again from the late 1970s on. This U-shaped evolution of income concentration is a bit less spectacular when one looks at national income rather than fiscal income, mainly because only the fraction of corporate profits paid out as dividends are included in fiscal income statistics, while all corporate profits are included in national income. Accounting for the totality of corporate profits generally increases the top 1 percent income share, but the effect is stronger in the post-World War II years, a time before the rise of pension plans somewhat broad-ened equity ownership.
One virtue of distributional national accounts is that they are not affected by legal changes in business organization. In the United States, a growing number of businesses have been organized as “pass-through” entities since the late 1980s. The income of pass-through entities—partnerships, S-corporations, sole proprietor-ships—is not subject to the corporate income tax; instead, all the income of these
Figure 3 Share of Income Earned by the Top 1 Percent
Note: This figure compares the share of fiscal income earned by the top 1 percent tax units (from Piketty and Saez 2003, updated series including capital gains in income to compute shares but not to define ranks, to smooth the lumpiness of realized capital gains) to the share of pre-tax national income earned by the top 1 percent equal-split adults (from Piketty, Saez, and Zucman 2018, updated September 2020, available on WID.world).
0%
5%
10%
15%
20%
25%
Pre-tax national income
Fiscal income
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
2020
Source: Saez and Zucman JEP'20