In 2008, the top 1 percent of tax returns paid 38.0 percent of all federal individual income taxes and earned 20.0 percent of adjusted gross income.
Both of those figures, share of income and share of taxes paid, were their lowest since 2004 when the top 1 percent earned 19 percent of adjusted gross income and paid 36.9 percent of federal individual income taxes.
Each year from 2005 to 2007, the top 1 percent's constantly growing share of income earned and taxes paid set a record.
That trend reversed in 2008. In fact, the income share for the top 1 percent of tax returns was lower in 2008 than in 2000, largely due to differences in capital gains.
Another indicator of this reversal in the income and tax shares of the top 1 percent is that during 2007, the top 1 percent had actually paid more in federal income tax than the bottom 95 percent.
The top-earning 5 percent of taxpayers (adjusted gross income over $159,619), however, still paid far more than the bottom 95 percent.
The top 5 percent earned 34.7 percent of the nation's adjusted gross income, but paid approximately 58.7 percent of federal individual income taxes.
From other IRS data, we can see that in 2008, around 52 million tax returns were filed with either positive or negative adjusted gross income that used exemptions, deductions and tax credits to completely wipe out their federal income tax liability.
Not only did they get back every dollar that the federal government withheld from their paychecks during 2008, but some even received more back from the IRS.
http://www.taxfoundation.org/news/show/250.html
Both of those figures, share of income and share of taxes paid, were their lowest since 2004 when the top 1 percent earned 19 percent of adjusted gross income and paid 36.9 percent of federal individual income taxes.
Each year from 2005 to 2007, the top 1 percent's constantly growing share of income earned and taxes paid set a record.
That trend reversed in 2008. In fact, the income share for the top 1 percent of tax returns was lower in 2008 than in 2000, largely due to differences in capital gains.
Another indicator of this reversal in the income and tax shares of the top 1 percent is that during 2007, the top 1 percent had actually paid more in federal income tax than the bottom 95 percent.
The top-earning 5 percent of taxpayers (adjusted gross income over $159,619), however, still paid far more than the bottom 95 percent.
The top 5 percent earned 34.7 percent of the nation's adjusted gross income, but paid approximately 58.7 percent of federal individual income taxes.
From other IRS data, we can see that in 2008, around 52 million tax returns were filed with either positive or negative adjusted gross income that used exemptions, deductions and tax credits to completely wipe out their federal income tax liability.
Not only did they get back every dollar that the federal government withheld from their paychecks during 2008, but some even received more back from the IRS.
http://www.taxfoundation.org/news/show/250.html