High-income households earn a disproportionate share of pretax income and pay an even larger share of total federal taxes
February 01, 2011
SOURCE: Data from TPC, Baseline Distribution of Cash Income and Federal Taxes, 2013, current law, January 2013. Compiled by PGPF.NOTE: Data for cash income in 2012 dollars. A quintile is one fifth of the distribution. The top quintile is the richest 20% of households, while the bottom is the poorest 20%.
The federal income tax system is generally designed to be "progressive" — that is, the tax rate increases as income rises. For example, the top 0.1 percent of households bring in a disproportionate amount of total income (9 percent), but also pays a disproportionate amount of federal taxes (15 percent).
For more information on taxes and federal revenues, see this PGPF Tax Rate Explainer.
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