Table 2.8
Tax rate, transfer rate, and tax rate net of transfers, by income group, 1979–2007
| All households | Household income fifth | Breakdown of top 10 percent | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Bottom | Second | Middle | Fourth | Top | 90th–<95th percentile | 95th–<99th percentile | Top 1 percent | ||
| 1979 | |||||||||
| Effective tax rate | 22.2% | 8.0% | 14.3% | 18.6% | 21.2% | 27.5% | 28.7% | 30.5% | 37.0% |
| Transfer rate | 8.3 | 45.2 | 19.2 | 8.4 | 4.9 | 2.6 | 0.4 | 0.4 | 0.2 |
| Tax rate net of transfers | 13.9 | -37.2 | -4.9 | 10.2 | 16.3 | 24.9 | 28.3 | 30.1 | 36.8 |
| 2007 | |||||||||
| Effective tax rate | 20.4% | 4.0% | 10.6% | 14.3% | 17.4% | 25.1% | 25.9% | 27.5% | 29.5% |
| Transfer rate | 9.1 | 32.3 | 20.1 | 15.6 | 10.4 | 3.5 | 2.9 | 1.9 | 0.6 |
| Tax rate net of transfers | 11.3 | -28.3 | -9.5 | -1.3 | 7.0 | 21.6 | 23.0 | 25.6 | 28.9 |
| Percentage-point change, 1979–2007 |
|||||||||
| Effective tax rate | -1.8 | -4.0 | -3.7 | -4.3 | -3.8 | -2.4 | -2.8 | -3.0 | -7.5 |
| Transfer rate | 0.8 | -12.8 | 0.9 | 7.2 | 5.5 | 1.0 | 2.5 | 1.5 | 0.4 |
| Tax rate net of transfers | -2.6 | 8.8 | -4.6 | -11.5 | -9.3 | -3.4 | -5.3 | -4.5 | -7.9 |
Note: Income groups reflect comprehensive income.
Source: Authors' analysis of Congressional Budget Office (2010a and 2010b)
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