corporate taxes should be removed from the totals I am interested in.
You pay corporate taxes through consumption purchases as all business taxes are derived from and paid out of sales revenues. Only individual citizens can ultimately pay taxes, corporations are merely associations of individuals as stockholders, employees and customers.
Howeve,r In the CBO report corporate taxes amount to 2.9% of gross family income, distributed in proportion to family capital income on the theory that corporate taxes decrease investment returns.
See the following more detailed study of the same information for distribution tables as a function of tax type:
http://www.cbo.gov/showdoc.cfm?index=3089&sequence=11#tableG-1a
Table G-1a. Effective Federal Tax Rates for All Households, by Income Quintile, Using Comprehensive Household Income Adjusted for Household Size, 1979-1997 (In percent) |
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1997 |
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Income Categorya | 1979 | 1981 | 1983 | 1985 | 1987 | 1989 | 1991 | 1993 | 1995 | Under 1997 Law |
Under 2000 Law |
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Total Effective Federal Tax Rate | ||||||||||||||||
Lowest Quintile | 8.1 | 8.3 | 8.1 | 9.7 | 8.9 | 8.5 | 7.9 | 7.6 | 6.0 | 5.6 | 5.3 | |||||
Second Quintile | 14.0 | 14.2 | 13.0 | 14.5 | 14.3 | 14.3 | 14.2 | 13.5 | 13.6 | 13.9 | 12.8 | |||||
Middle Quintile | 18.2 | 18.7 | 17.1 | 17.7 | 17.3 | 17.6 | 17.3 | 17.3 | 17.6 | 17.5 | 16.7 | |||||
Fourth Quintile | 21.2 | 21.9 | 19.9 | 20.2 | 20.0 | 20.3 | 20.2 | 20.4 | 20.8 | 20.5 | 20.0 | |||||
Highest Quintile | 27.8 | 27.1 | 23.7 | 23.7 | 25.4 | 25.1 | 25.2 | 26.8 | 28.3 | 27.7 | 27.4 | |||||
All Quintiles | 22.3 | 22.4 | 20.2 | 20.6 | 21.3 | 21.3 | 21.1 | 22.0 | 22.9 | 22.8 | 22.3 | |||||
Top 10 Percent | 30.0 | 28.4 | 24.7 | 24.4 | 26.8 | 26.2 | 26.3 | 28.5 | 30.4 | 29.4 | 29.1 | |||||
Top 5 Percent | 32.2 | 29.6 | 25.3 | 24.9 | 27.9 | 27.0 | 27.3 | 30.1 | 32.3 | 30.9 | 30.5 | |||||
Top 1 Percent | 37.3 | 31.8 | 26.8 | 26.0 | 29.9 | 28.2 | 28.9 | 33.3 | 36.4 | 33.3 | 32.7 | |||||
Effective Individual Income Tax Rate | ||||||||||||||||
Lowest Quintile | -0.4 | 0.3 | -0.1 | 0.3 | -0.7 | -1.1 | -1.9 | -2.3 | -4.5 | -5.0 | -5.3 | |||||
Second Quintile | 3.9 | 4.5 | 3.5 | 3.9 | 3.4 | 3.5 | 3.1 | 2.4 | 2.2 | 2.4 | 1.3 | |||||
Middle Quintile | 7.3 | 8.0 | 6.6 | 6.5 | 5.8 | 6.1 | 5.9 | 5.5 | 5.5 | 5.6 | 4.8 | |||||
Fourth Quintile | 10.1 | 11.0 | 9.1 | 8.9 | 8.2 | 8.4 | 8.2 | 8.0 | 8.0 | 8.1 | 7.5 | |||||
Highest Quintile | 15.9 | 16.7 | 14.1 | 13.8 | 14.6 | 14.4 | 14.1 | 14.7 | 15.5 | 16.1 | 15.8 | |||||
All Quintiles | 11.1 | 12.0 | 10.2 | 10.1 | 10.2 | 10.2 | 9.8 | 10.0 | 10.4 | 11.0 | 10.5 | |||||
Top 10 Percent | 17.7 | 18.3 | 15.5 | 15.2 | 16.4 | 16.0 | 15.7 | 16.7 | 17.6 | 18.1 | 17.8 | |||||
Top 5 Percent | 19.4 | 19.7 | 16.8 | 16.4 | 18.1 | 17.4 | 17.1 | 18.6 | 19.6 | 20.0 | 19.5 | |||||
Top 1 Percent | 22.4 | 22.0 | 19.1 | 18.5 | 20.7 | 19.5 | 19.7 | 22.5 | 23.4 | 23.0 | 22.3 | |||||
Effective Social Insurance Tax Rate | ||||||||||||||||
Lowest Quintile | 5.3 | 5.8 | 5.8 | 6.5 | 6.6 | 7.2 | 7.0 | 6.8 | 7.2 | 7.4 | 7.4 | |||||
Second Quintile | 7.3 | 7.8 | 7.6 | 8.4 | 8.6 | 8.7 | 9.0 | 8.8 | 8.8 | 9.2 | 9.2 | |||||
Middle Quintile | 8.3 | 8.9 | 8.7 | 9.2 | 9.1 | 9.4 | 9.3 | 9.5 | 9.6 | 9.7 | 9.7 | |||||
Fourth Quintile | 8.4 | 9.0 | 8.9 | 9.4 | 9.5 | 9.7 | 9.9 | 10.2 | 10.3 | 10.2 | 10.2 | |||||
Highest Quintile | 5.6 | 6.2 | 6.3 | 6.5 | 6.6 | 6.7 | 7.4 | 7.5 | 7.5 | 6.7 | 6.7 | |||||
All Quintiles | 6.8 | 7.5 | 7.4 | 7.8 | 7.9 | 8.0 | 8.4 | 8.5 | 8.6 | 8.1 | 8.1 | |||||
Top 10 Percent | 4.5 | 5.1 | 5.2 | 5.2 | 5.4 | 5.4 | 6.3 | 6.2 | 6.4 | 5.4 | 5.4 | |||||
Top 5 Percent | 3.2 | 3.8 | 3.8 | 3.8 | 4.1 | 3.9 | 5.0 | 4.8 | 5.1 | 4.2 | 4.2 | |||||
Top 1 Percent | 1.4 | 1.6 | 1.6 | 1.5 | 1.7 | 1.5 | 2.2 | 2.0 | 2.7 | 2.1 | 2.1 | |||||
Effective Corporate Income Tax Rate | ||||||||||||||||
Lowest Quintile | 1.0 | 0.6 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.6 | 0.5 | 0.5 | 0.5 | |||||
Second Quintile | 1.4 | 0.8 | 0.6 | 0.6 | 0.9 | 0.8 | 0.6 | 0.8 | 0.8 | 0.7 | 0.7 | |||||
Middle Quintile | 1.6 | 1.0 | 0.9 | 0.9 | 1.2 | 1.1 | 1.0 | 1.1 | 1.2 | 1.1 | 1.1 | |||||
Fourth Quintile | 1.8 | 1.2 | 1.1 | 1.1 | 1.4 | 1.3 | 1.2 | 1.3 | 1.4 | 1.4 | 1.4 | |||||
Highest Quintile | 5.6 | 3.6 | 2.7 | 2.8 | 3.6 | 3.5 | 3.1 | 3.9 | 4.7 | 4.4 | 4.4 | |||||
All Quintiles | 3.4 | 2.2 | 1.8 | 1.8 | 2.4 | 2.3 | 2.0 | 2.5 | 2.9 | 2.9 | 2.9 | |||||
Top 10 Percent | 7.1 | 4.6 | 3.4 | 3.5 | 4.4 | 4.3 | 3.8 | 4.9 | 5.9 | 5.4 | 5.4 | |||||
Top 5 Percent | 9.0 | 5.6 | 4.2 | 4.3 | 5.4 | 5.3 | 4.7 | 6.0 | 7.2 | 6.3 | 6.3 | |||||
Top 1 Percent | 13.0 | 7.9 | 5.7 | 5.6 | 7.2 | 6.9 | 6.6 | 8.2 | 10.0 | 8.0 | 8.0 | |||||
Effective Federal Excise Tax Rate | ||||||||||||||||
Lowest Quintile | 2.1 | 1.6 | 1.9 | 2.5 | 2.5 | 1.9 | 2.3 | 2.5 | 2.7 | 2.8 | 2.8 | |||||
Second Quintile | 1.3 | 1.1 | 1.2 | 1.5 | 1.5 | 1.3 | 1.5 | 1.6 | 1.8 | 1.6 | 1.6 | |||||
Middle Quintile | 1.1 | 0.8 | 0.9 | 1.1 | 1.1 | 1.0 | 1.1 | 1.2 | 1.3 | 1.1 | 1.1 | |||||
Fourth Quintile | 0.9 | 0.7 | 0.8 | 0.9 | 0.9 | 0.8 | 0.9 | 0.9 | 1.1 | 0.9 | 0.9 | |||||
Highest Quintile | 0.7 | 0.6 | 0.6 | 0.6 | 0.6 | 0.5 | 0.6 | 0.6 | 0.7 | 0.5 | 0.5 | |||||
All Quintiles | 1.0 | 0.8 | 0.8 | 0.9 | 0.9 | 0.8 | 0.9 | 1.0 | 1.0 | 0.9 | 0.9 | |||||
Top 10 Percent | 0.7 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.6 | 0.6 | 0.4 | 0.4 | |||||
Top 5 Percent | 0.6 | 0.5 | 0.5 | 0.5 | 0.4 | 0.4 | 0.5 | 0.5 | 0.5 | 0.4 | 0.4 | |||||
Top 1 Percent | 0.5 | 0.4 | 0.4 | 0.3 | 0.3 | 0.3 | 0.3 | 0.5 | 0.3 | 0.2 | 0.2 | |||||
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SOURCE: Congressional Budget Office. | ||||||||||||||||
NOTES: Effective tax rates are calculated by dividing tax liabilities by adjusted comprehensive household income. | ||||||||||||||||
A household consists of the people who share a housing unit, regardless of the relationships among them. | ||||||||||||||||
Comprehensive household income equals pretax cash income plus income from other sources. Pretax cash income is the sum of wages, salaries, self-employment income, rents, taxable and nontaxable interest, dividends, realized capital gains, cash transfer payments, and retirement benefits plus taxes paid by businesses (corporate income taxes and the employer's share of Social Security, Medicare, and federal unemployment insurance payroll taxes) and employee contributions to 401(k) retirement plans. Other sources of income include all in-kind benefits (Medicare, Medicaid, employer-paid health insurance premiums, food stamps, school lunches and breakfasts, housing assistance, and energy assistance). Households with negative income are excluded from the lowest income category but are included in totals. | ||||||||||||||||
Individual income taxes are distributed directly to households paying those taxes. Payroll taxes are distributed to households paying those taxes directly or paying them indirectly through their employers. Federal excise taxes are distributed to households according to their consumption of the taxed good or service. Corporate income taxes are distributed to households according to their share of capital income. | ||||||||||||||||
a. Income categories are defined by ranking all people by their comprehensive household income adjusted for household size--that is, divided by the square root of the household's size. Quintiles, or fifths, of the income distribution contain equal numbers of people. |
You may adjust as you see fit.