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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