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1 Gerald Prante, New IRS Data Show All Income Groups Have Seen Tax Liabilities Fall Since 2000 1 (2006)

handle is hein.taxfoundation/ffgexz0001 and id is 1 raw text is: r:OuU NDAT10N. September 20, 2006 New IRS Data Show All Income Groups Have Seen Tax Liabilities Fall Since 2000 by Gerald Prante The IRS recently released official tax statistics by income group for the 2004 tax year, and the new data show that despite what some critics of recent tax policy have suggested, all income groups have witnessed their effective federal income tax rates fall, including lower- and middle-income taxpayers. Table 1 shows how the tax picture has changed for each income group (as defined by adjusted gross income, or AGI) from 2000 to 2004 when all tax returns within each group are included. Table 1: Tax Rates Have Fallen for All Income Groups from 2000 to 2004 ................................................. e r c e f......Pe c e n o f .............................................................................................................................. Returns in Share of Total Income Taxes Income Group Share of Total :Federal Income: Paid as a Income Group that are AGI in Income Taxes Paid* by: Percentage of Tax (AG I) Taxable Group Income Group AGI Cut** 2000: 2004: 2000: 2004. 2000: 2004:: 2000:: 2004: Total 74.8% 67.4% 100%:: 100% 100% 100% 14.9% 11.5% 3.4% S1-$5,000 18.00o. 6 50 o 0 0 0.5%/o0 20 2 -0.21)o0 -44% -5.6 o 1.20 $5,000-$10,000 43.2% 32.0'/ o. 1.5%: 1.3% -0.7%: -0.9%4 -6.4%09 -7.7% 1.3%: S1000-$i5,00 57.2 48.70. 2.4%:0 2.1o -0.50 - L, -3.3% -7.1 % 3.8% :i................. ......................................... : ..... ...................... ........... ....... ............. .................................................................................................................................... .......................... ............................. ::15,000-$20,000 64.7 : 54.5 3.2%0 2.9%0o 0.20/: -0.9% 1.00%: -3.4% 4.4%:0 $20,000-$25,000 75.7 61.1 35 0 3.2o 1.10/o -0.1 o0 4.6%:: -0.4/o: 5.00 S25,000-30,000 87.2%o 68.7%w 3.6%: 3.4% 1.7% 0.8V 6.8% 2.5% 4.3%: .............................................................................. .... . . . . . ........ 3... ... .. .. ... .... ... .. .. ... ....... .. .. ... .. ..... .. .. ... .. .. . .... .. ... .. .4... .... ... .. .. ... . ...... .. .. ... .. .. S40,000-$50,000 98.5%. 89.6)o 7.3%0 7.0% 4.80 4.2%0 98%20 6.9 o 2.9% ::$50,000-$75,000 99.3%. 96.1%: 16.4%:0 16.3o 12.2%: 11.9% 11.1%0 8.3o 2.8% ::$75,000-$100,000 99.8%: 99.0%: 11.6% :: 12.9% 10.5% 11.0%:: 13.5%:: 9.8% 3.7% i$100,000- i :$200,000 99.9%: 99.8%: 16.8%: 19.0%. 19.4% 22.5%:: 17.3% 13.6o 3.7% S200,000- i$500,000 99.9%: 99.9% 9.6oi 1.0%: 15.4%: 17.9%: 23.9% 20.6% 3.3% $500,000- 1,000,000 99.9%: 99.9%: . 2o: 4.3%. 8.0%. 9.2% 28.3o 24.3o 3.9o