Monday, January 08, 2007

Federal Tax Progressivity: Just the Facts

From a new CBO report, here are the effective federal tax rates for 2004 (the most recent year available in this report):

Lowest quintile, 4.5
Second quintile, 10.0
Middle quintile, 13.9
Fourth quintile, 17.2
Highest quintle, 25.1

Top 10 percent, 26.9
Top 5 percent, 28.5
Top 1 percent, 31.1

These numbers include all federal taxes (not just income taxes) and are expressed as a percentage of household income.