Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 4 The Economics of the Public Sector
Chapter 12 of 36 The Design of the Tax System
Section 18 of 22
Much debate over tax policy is about whether the wealthy pay their “fair share.”
To evaluate it is useful to know the taxes families with different incomes pay currently.
In Table 8, figures for year 2005 families are ranked according to their income and placed into five groups of equal size.
Data is also shown for the richest one percent of Americans.
Taxes are all those paid to the federal government.
The second column shows the average income of each group
· the poorest one-fifth of families had average income of $15,900
· the richest one-fifth had average income of $231,300
· the richest 1 percent had average income of $1.559 million
The third column shows total taxes paid as a percentage of income
· the poorest fifth of families paid 4.3 percent of their incomes in taxes
· the richest fifth paid 25.5 percent
· the top 1 percent paid 31.2 percent
The fourth column shows the percentage of all income in the economy earned by each quintile
· the poorest quintile earns 4.0 percent of all income
· the richest quintile earns 55.1 percent of all income
· the richest 1 percent earns 18.1 percent of all income
The fifth column shows the percentage of all federal taxes paid by each quintile
· the poorest quintile pays 0.8 percent of all federal taxes
· the richest quintile pays 68.7 percent of all federal taxes
· the richest 1 percent pays 27.6 percent of all federal taxes
…
This data shows the income tax system is progressive, with the rich paying higher percent of taxes.
This table does not include transfer payments such as Social Security and welfare, flowing from the federal government back to households.
Data including both taxes and transfers show even greater progressivity.
Poor families typically receive more transfers than they pay taxes.
After adjusted for transfers, the average tax rate of the poorest quintile is approximately negative 30 percent, rather than 4.3 percent.
… …
the first column on the data table
dētatēburu saisho retsu
データテーブル最初列

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