We have what I believe an inverted tax system in the sense that we pay more taxes to the government we least control (the federal government) and we receive the least services from.

In my world, the town government would have the highest taxes, while the federal government would have the lowest taxes.

Four Items to Restore Fiscal Sanity
  1. Corporations are not people.

  2. Get rid of public sector unions.

  3. Go back to the Gold Standard.

  4. Legalize marijuana.

Federal Revenues (in Billions)
Year Revenues
2000 $2,025
2001 $1,991
2002 $1,853
2003 $1,782
2004 $1,880
2005 $2,153
2006 $2,407
2007 $2,568
2008 $2,521

Income Tax: Who Pays? IRS Figures for 2000

For Tax Year 2000
Percentiles Ranked
by AGI 		AGI Threshold on
Percentiles 		Percentage of Federal
Personal Income Tax Paid
Top 1% $313,469 37.42
Top 5% $128,336 56.47
Top 10% $92,144 67.33
Top 25% $55,225 84.01
Top 50% $27,682 96.09
Bottom 50% <$27,682 3.91
Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service

Table 1
Individual Income Tax Returns with Positive Adjusted Gross Income (AGI): Number of Returns, Shares of AGI and Total Income Tax, AGI Floor on Percentiles in Current and Constant Dollars, and Average Tax Rates, by Selected Descending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year, Tax Years 1986-2000 [All figures are estimates based on samples] Descending cumulative percentiles
Number of Returns [1]
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 102,087,623 1,020,876 5,104,381 10,208,762 25,521,906 51,043,811
1987 106,154,761 1,061,548 5,307,738 10,615,476 26,538,690 53,077,380
1988 108,872,859 1,088,729 5,443,643 10,887,286 27,218,214 54,436,429
1989 111,312,721 1,113,127 5,565,636 11,131,272 27,828,181 55,656,361
1990 112,812,262 1,128,123 5,640,613 11,281,226 28,203,066 56,406,132
1991 113,804,104 1,138,041 5,690,205 11,380,410 28,451,026 56,902,052
1992 112,652,759 1,126,528 5,632,638 11,265,276 28,163,190 56,326,380
1993 113,681,387 1,136,814 5,684,069 11,368,139 28,420,347 56,840,694
1994 114,989,920 1,149,899 5,749,496 11,498,992 28,747,480 57,494,960
1995 117,274,186 1,172,742 5,863,709 11,727,419 29,318,546 58,637,093
1996 119,441,767 1,194,418 5,972,088 11,944,177 29,860,442 59,720,884
1997 121,503,284 1,215,033 6,075,164 12,150,328 30,375,821 60,751,642
1998 123,775,831 1,237,758 6,188,792 12,377,583 30,943,958 61,887,915
1999 126,008,974 1,260,090 6,300,449 12,600,897 31,502,244 63,004,487
2000 128,227,143 1,282,271 6,411,357 12,822,714 32,056,786 64,113,572

Adjusted gross income floor on percentiles (current dollars):
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 N/A 118,818 62,377 48,656 32,242 17,302
1987 N/A 139,289 68,414 52,921 33,983 17,768
1988 N/A 157,136 72,735 55,437 35,398 18,367
1989 N/A 163,869 76,933 58,263 36,839 18,993
1990 N/A 167,421 79,064 60,287 38,080 19,767
1991 N/A 170,139 81,720 61,944 38,929 20,097
1992 N/A 181,904 85,103 64,457 40,378 20,803
1993 N/A 185,715 87,386 66,077 41,210 21,179
1994 N/A 195,726 91,226 68,753 42,742 21,802
1995 N/A 209,406 96,221 72,094 44,207 22,344
1996 N/A 227,546 101,141 74,986 45,757 23,174
1997 N/A 250,736 108,048 79,212 48,173 24,393
1998 N/A 269,496 114,729 83,220 50,607 25,491
1999 N/A 293,415 120,846 87,682 52,965 26,415
2000 N/A 313,469 128,336 92,144 55,225 27,682

Adjusted gross income floor on percentiles (constant dollars): [2]
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 N/A 108,411 56,913 44,394 29,418 15,786
1987 N/A 122,614 60,224 46,585 29,915 15,641
1988 N/A 132,828 61,484 46,861 29,922 15,526
1989 N/A 132,152 62,043 46,986 29,709 15,317
1990 N/A 128,096 60,493 46,126 29,135 15,124
1991 N/A 124,919 60,000 45,480 28,582 14,756
1992 N/A 129,654 60,658 45,942 28,780 14,828
1993 N/A 128,522 60,475 45,728 28,519 14,657
1994 N/A 132,069 61,556 46,392 28,841 14,711
1995 N/A 137,406 63,137 47,306 29,007 14,661
1996 N/A 145,026 64,462 47,792 29,163 14,769
1997 N/A 156,222 67,320 49,353 30,014 15,198
1998 N/A 164,427 69,999 50,775 30,877 15,553
1999 N/A 176,119 72,537 52,630 31,792 15,855
2000 N/A 182,038 74,527 53,510 32,070 16,075

Adjusted gross income (millions of dollars):
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 2,524,124 285,197 608,467 886,510 1,490,173 2,103,569
1987 2,813,728 346,635 722,221 1,038,221 1,709,389 2,373,869
1988 3,124,156 473,527 890,702 1,232,536 1,950,860 2,657,865
1989 3,298,858 468,079 918,421 1,286,539 2,054,478 2,805,235
1990 3,451,237 483,252 953,337 1,338,032 2,144,177 2,932,537
1991 3,516,142 456,603 943,350 1,343,202 2,174,765 2,984,003
1992 3,680,552 523,586 1,031,093 1,443,784 2,299,401 3,131,400
1993 3,775,578 520,586 1,048,252 1,474,463 2,357,953 3,212,299
1994 3,961,146 546,700 1,103,084 1,552,205 2,481,074 3,371,352
1995 4,244,607 619,610 1,222,723 1,704,513 2,689,820 3,627,542
1996 4,590,527 736,545 1,393,805 1,909,149 2,952,637 3,944,383
1997 5,023,457 872,826 1,597,107 2,151,401 3,267,600 4,327,992
1998 5,469,211 1,010,245 1,796,647 2,393,716 3,589,600 4,721,430
1999 5,909,329 1,152,820 2,011,763 2,652,835 3,927,308 5,126,164
2000 6,423,977 1,336,773 2,267,403 2,955,386 4,313,786 5,589,755

Descending cumulative percentiles Total income tax (millions of dollars): [3]
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 366,979 94,491 156,240 200,703 278,976 343,289
1987 369,046 91,559 159,642 205,230 283,857 346,655
1988 412,761 113,841 188,303 236,411 321,297 389,145
1989 432,838 109,259 190,188 241,458 334,258 407,599
1990 447,061 112,338 195,088 247,514 344,340 421,075
1991 448,349 111,267 194,480 250,282 346,511 423,759
1992 476,163 131,156 218,479 276,213 373,700 452,070
1993 502,720 145,836 238,083 297,808 398,516 478,563
1994 534,754 154,337 254,106 317,902 425,402 509,256
1995 588,331 178,035 287,741 357,402 472,808 561,225
1996 658,124 212,626 335,433 411,404 535,164 629,684
1997 727,303 241,239 377,241 459,639 594,007 696,161
1998 788,452 274,009 424,506 512,836 651,964 755,240
1999 877,292 317,419 486,464 583,002 732,890 842,168
2000 980,521 366,929 553,670 660,150 823,706 942,179

Average tax rate (percentage): [4]
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 14 54 33 13 25 68
1987 13 12 26 41 22 10
1988 13 21 24 04 21 14
1989 13 12 23 34 20 71
1990 12 95 23 25 20 46
1991 12 75 24 37 20 62
1992 12 94 25 05 21 19
1993 13 32 28 01 22 71
1994 13 50 28 23 23 04
1995 13 86 28 73 23 53
1996 14 34 28 87 24 07
1997 14 48 27 64 23 62
1998 14 42 27 12 23 63
1999 14 85 27 53 24 18
2000 15 26 27 45 24 42

Adjusted gross income share (percentage):
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 100 00 11 30 24 11
1987 100 00 12 32 25 67
1988 100 00 15 16 28 51
1989 100 00 14 19 27 84
1990 100 00 14 00 27 62
1991 100 00 12 99 26 83
1992 100 00 14 23 28 01
1993 100 00 13 79 27 76
1994 100 00 13 80 27 85
1995 100 00 14 60 28 81
1996 100 00 16 04 30 36
1997 100 00 17 38 31 79
1998 100 00 18 47 32 85
1999 100 00 19 51 34 04
2000 100 00 20 81 35 30

Total income tax share (percentage):
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
1986 100 00 25 75 42 57
1987 100 00 24 81 43 26
1988 100 00 27 58 45 62
1989 100 00 25 24 43 94
1990 100 00 25 13 43 64
1991 100 00 24 82 43 38
1992 100 00 27 54 45 88
1993 100 00 29 01 47 36
1994 100 00 28 86 47 52
1995 100 00 30 26 48 91
1996 100 00 32 31 50 97
1997 100 00 33 17 51 87
1998 100 00 34 75 53 84
1999 100 00 36 18 55 45
2000 100 00 37 42 56 47

  1. The number of returns with negative adjusted gross income, i.e., returns with an adjusted gross deficit, and the corresponding amounts for adjusted gross deficit, were excluded from Table 1.  By excluding deficit returns, alternative minimum tax reported on some of these returns was also excluded.  For Tax Year 2000, there were 5,714 returns with no adjusted gross income that reported income tax, mostly alternative minimum tax, totaling $100.6 million.
  2. For Table 1, constant dollars were calculated using the U.S. Bureau of Labor Statistics' consumer price index for urban consumers (CPI-U, 1982-84=100).  For 2000 the CPI-U = 172.2
  3. Total income tax is the sum of income tax after credits and alternative minimum tax reported on returns that showed a positive amount for adjusted gross income.  Therefore, total income tax excludes alternative minimum tax, Form 8814 tax (tax on a child's interest or dividends), and Form 4972 tax (tax on lump-sum distributions from qualified retirement plans) reported on some returns with a negative amount for adjusted gross income.  See also footnote 1.
  4. The average tax rate was computed by dividing total income tax (see footnote 3) by (positive) adjusted gross income.
Note: Unless otherwise stated, money amounts are in current (not constant) denominations.

Source: Internal Revenue Service, Statistics of Income Division, Unpublished Statistics, September 2002.

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