1-Apr-07
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T07-0115
Distribution of Federal Payroll and Income Taxes by Cash Income Class, 2006 1
Cash Income Class
(thousands of 2006
dollars)2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of
Tax Units3
13.0
17.4
13.5
10.2
8.1
14.3
8.6
10.8
2.9
0.5
0.3
100.0
Percent of Tax Units With
Positive:
Payroll Tax4
52.5
60.2
76.5
83.7
86.0
88.2
91.1
93.3
91.2
89.0
88.7
77.2
Income Tax5
1.9
26.0
46.6
62.6
78.7
92.0
97.4
98.9
98.8
99.0
99.2
59.7
Average Tax Rate (Percent) 6
Payroll Tax
7.7
7.8
9.8
10.8
10.8
10.7
10.9
10.1
6.0
3.0
1.2
8.3
Income Tax
-5.1
-4.4
-1.0
2.6
4.8
6.6
7.9
10.5
15.2
18.3
19.3
9.7
Percent with Payroll Tax Greater Than
Income Tax
All Tax Units
52.5
59.7
75.2
81.7
82.0
75.8
72.6
55.4
8.0
4.2
1.1
65.9
Wage Earners
99.9
99.3
98.5
97.7
95.5
86.4
80.4
60.1
9.0
5.0
1.3
85.5
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 1006-2).
(1) Calendar year.
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) Includes the employee and employer portion of Social Security (OASDI) and Medicare (HI) taxes and self-employment taxes.
(5) Income tax after refundable credits.
(6) Tax as a percentage of cash income.
Percent with Employee Share of
Payroll Tax Greater Than Income Tax
All Tax Units
52.5
59.4
62.2
49.0
44.4
39.0
30.7
12.0
2.3
2.0
0.8
43.9
Wage Earners
99.9
98.8
81.1
58.0
51.2
44.3
33.8
12.9
2.5
2.4
0.9
56.2