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HALLIDAY & COMPANY is interested in helping you achieve your individual and business financial goals. Understanding basic financial and tax concepts will help prevent costly mistakes and allow you to operate as efficiently as possible. For this reason, we publish “ACCOUNT-ABILITY” as a resource of helpful information, which we hope, will benefit you personally and/or as a business owner. |
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E-Mail Halliday@hallidaycpa.com |
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This newsletter offers factual and up-to-date information on the subjects discussed, but should not be regarded as a complete analysis of these subjects. No party assumes liability for any loss or damage resulting from reliance or use of this material. |
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HAPPY HOLIDAYS! |
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At this Holiday Season, our thoughts turn gratefully to those who have made our progress possible. Thank you and warmest wishes for the Holiday Season and the New Year. |
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Who Pays Taxes? |
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Many of you might find these latest statistics interesting. High-incomers are bearing a larger share of the income tax burden, according to new Internal Revenue Service data from 2003 returns, the most recent year analyzed by the IRS.
The top 1% of filers paid 34.3% of all federal income tax in 2003, up from 33.7% in 2002. They made just 16.8% of all adjusted gross income (AGI). An AGI of more than $295,500 was needed to be in this group of taxpayers.
The top 5% of filers paid 54% of all federal income tax and made 31% of total AGI. They all had incomes of $130,100 or more. And the top 10% of all filers, those with AGI’s of at least $94,900, bore 66% of the income tax burden while tallying a little more than 42% of total AGI.
The bottom 50% of filers paid just 3.5% of total income tax. Their share is so low because payroll taxes are not included in the figures and because many of them receive tax relief from the earned income credit. In fact, the lowest earners actually had a negative income tax rate. |
