Paying Taxes
With all the debate in Congress about cutting taxes, here’s a look at how various segments of taxpayers, ranked by wealth, contributed to the nation’s tax bill in 1994, the latest year for which figures are available.
Those making up the nation’s wealthiest 1% accounted for close to 30% of individual taxes collected in 1994; those in the top 10% provided almost 60% of that amount.
“These numbers show that the rich are paying a lot of taxes. There is still a myth around that high-income people weren’t paying taxes. That is absolutely not true, “ said Philip J. Holthouse, partner in the Los Angeles tax accounting firm of Holthouse, Carlin & Van Trigt.
“Even with the best tax advice, very wealthy people are writing big checks to the government.”
TOP 1% BY INCOME
Adjusted Gross Income: $195,726
Number of Returns: 1,149,899
Tax Rate: 28.23%
Share of Total Individual Income Taxes: 28.86%
Total Income Tax: $154 billion
TOP 5% BY INCOME
Adjusted Gross Income: $91,226
Number of Returns: 5,749,496
Tax Rate: 23.04%
Share of Total Individual Income Taxes: 47.52%
Total Income Tax: $254 billion
TOP 10% BY INCOME
Adjusted Gross Income: $68,753
Number of Returns: 11,498,992
Tax Rate: 20.48%
Share of Total Individual Income Taxes: 59.45%
Total Income Tax: $317 billion
TOP 25% BY INCOME
Adjusted Gross Income: $42,742
Number of Returns: 28,747,480
Tax Rate: 17.15%
Share of Total Individual Income Taxes: 79.55%
Total Income Tax: $425 billion
TOP 50% BY INCOME
Adjusted Gross Income: $21,802
Number of Returns: 57,494,960
Tax Rate: 15.11%
Share of Total Individual Income Taxes: 95.23%
Total Income Tax: $509 billion
Source: Internal Revenue Service
Compiled by D’Jamila Salem Fitzgerald
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