Accounting and Finance Foundations

Unit 9

Accounting and Finance Foundations Unit 9: Taxes 720

Taxes

Chapter 21

Student Assignment

21.8.3 Income Taxes—Twenty Questions

Table A:

Income Groups According to AGI Levels, 2009

Top 1% More than $343,927

Top 5% More than $154,643

Top 10% More than $112,124

Top 25% More than $66,193

Top 50% More than $32,396

Bottom 50% Less than $32,396

Table B:

Federal Income Tax Burden by Income Group, 2009

Income

Group

Number

of returns

AGI

($ millions)

Income

taxes paid

($ millions)

Group’s

share of

total

AGI (%)

Group’s

share of

Income

taxes (%)

Average

tax rate

(%)

All taxpayers 137,982,203 7,825,389 865,863 100 100 11.06

Top 1% 1,379,822 1,324,571 318,043 16.93 36.73 24.01

Top 5% 6,899,110 2,482,489 507,907 31.72 58.66 20.46

Top 10% 13,798,220 3,379,730 610,156 43.19 70.47 18.05

Top 25% 34,495,551 5,149,871 755,901 65.81 87.30 14.68

Top 50% 68,991,102 6,770,174 846,352 86.52 97.75 12.50

Bottom 50% 68,991,102 1,055,215 19,511 13.48 2.25 1.85

Source: Internal Revenue Service. (n.d). Individual Income Tax Returns with Positive Adjusted Gross Income

(AGI) (Tables 5–6). Retrieved February 5, 2013, from

http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Statistical-Tables-by-Tax-Rate-and-Income-Percentile#_grp2