CBO:Top 40% Paid 106.2% of Income Taxes; Bottom 40% Paid -9.1%, Got Average of $18,950 in 'Transfers'
http://www.cnsnews.com/news/article...ome-taxes-bottom-40-paid-91-got-average-18950
The top 40 percent of households by before-tax income actually paid 106.2 percent of the nationâs net income taxes in 2010, according to a new study by the Congressional Budget Office.
At the same time, households in the bottom 40 percent took in an average of $18,950 in what the CBO called âgovernment transfersâ in 2010.
Taxpayers in the top 40 percent of households were able to pay more than 100 percent of net federal income taxes in 2010 because Americans in the bottom 40 percent actually paid negative income taxes, according to the CBO study entitled, âThe Distribution of Household Income and Federal Taxes, 2010.â
âWhen refundable tax credits, such as the earned income tax credit and the child tax credit, exceed the other federal tax liabilities of the households in an income group, those households are said to have a negative average tax rate,â said the CBO study.
âIn its analysis, CBO measured individual income taxes net of refundable credits,â it said.
In 2010, the CBO determined, American households in the bottom 40 percent paid negative amounts in income-tax dollars and a negative average income-tax rate.
âMuch of the progressivity of the federal tax system derives from the individual income tax,â said the report. âIn 2010, the lowest quintileâs average rate for the individual income tax was -9.2 percent and the second income quintileâs rate was -2.3 percent.â
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http://www.cnsnews.com/news/article...ome-taxes-bottom-40-paid-91-got-average-18950
The top 40 percent of households by before-tax income actually paid 106.2 percent of the nationâs net income taxes in 2010, according to a new study by the Congressional Budget Office.
At the same time, households in the bottom 40 percent took in an average of $18,950 in what the CBO called âgovernment transfersâ in 2010.
Taxpayers in the top 40 percent of households were able to pay more than 100 percent of net federal income taxes in 2010 because Americans in the bottom 40 percent actually paid negative income taxes, according to the CBO study entitled, âThe Distribution of Household Income and Federal Taxes, 2010.â
âWhen refundable tax credits, such as the earned income tax credit and the child tax credit, exceed the other federal tax liabilities of the households in an income group, those households are said to have a negative average tax rate,â said the CBO study.
âIn its analysis, CBO measured individual income taxes net of refundable credits,â it said.
In 2010, the CBO determined, American households in the bottom 40 percent paid negative amounts in income-tax dollars and a negative average income-tax rate.
âMuch of the progressivity of the federal tax system derives from the individual income tax,â said the report. âIn 2010, the lowest quintileâs average rate for the individual income tax was -9.2 percent and the second income quintileâs rate was -2.3 percent.â
(more at url)
