Wednesday, April 20, 2011
The richest of the rich did very well for themselves from 1995 to 2007, thanks in part to a shrinking tax burden for the wealthy.
A new report from the IRS shows the effective tax rate for the richest 400 Americans dropped by almost half during the 12-year period, from 29.93% in 1995 to 16.63% in 2007.
In 1995, only a dozen of the wealthiest Americans paid an effective tax rate of between zero and 15%. By 2007, the number had ballooned to more than 150, owing to the Bush-era tax reductions and “the aggressive exploitation of tax dodges and shelters,” according to Think Progress.
Although the richest 5% of Americans still account for 44% of the nation’s tax revenues, the elite 400 still saw their collective income expand from $6 billion to nearly $23 billion.
-Noel Brinkerhoff
In 12 Years, Income For Richest 400 Americans Quadruples, Tax Rate Nearly Halved (by Judd Legum, Think Progress)
For Richest, Federal Taxes Have Gone Down; For Some in U.S., They’re Nonexistent (by Stephen Ohlemacher, Associated Press)
How to Pay No Taxes (by Jesse Drucker, Business Week)
The 400 Individual Income Tax Returns Reporting the Highest Adjusted Gross Incomes Each Year, 1992-2007 (IRS) (pdf)
Americans Overwhelmingly Support Raising Taxes for Millionaires
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