Effective (Federal Income) Tax Rate, 2010
Last week, the Tax Policy Center of Urban Institute and Brookings Institution released updated information about the distribution of effective individual (federal) income tax rate, 2010.
The headline of Tax Policy Center’s twitter, TaxVox, goes: “Half of all households pay less than 1.5% of their income in federal individual income taxes.” Well, justifiable so to me, given the federal role in redistribution.
The graph below was trimmed from the original table so as to fit my blog width. Click the link and you can see more complete information, including “tax units” associated with each income quintile, their mean and median cash income, or footnotes(!) for the table.
An additional note: It is great that the table includes a five-number summary (instead of one single value) of the effective tax rate for each quintile. If you need just one value, better stick with the “Median” column rather than the “Mean” one, for means are very sensitive to outliers.