SELECTED DATA RELATED TO THE FEDERAL TAX SYSTEM 

Prepared by the Staff 

of the 

JOINT COMMITTEE ON TAXATION 

March 14, 2007 

JCX-11-07 
i 

CONTENTS 

Page

INTRODUCTION .......................................................................................................................... 1 

A. Federal Tax System at a Glance.......................................................................................... 2 

B. Selected Data Related to Individuals .................................................................................. 6 

C. Selected Data Related to Corporations and Other Businesses.......................................... 20 

D. Selected Data Related to the Estate Tax ........................................................................... 28 

E. Selected Data Related to Excise Taxes............................................................................. 29 
1 

INTRODUCTION 

This document,1

 prepared by the staff of the Joint Committee on Taxation, provides 

general background data related to the Federal tax system. 

The current Federal tax system has four main elements: (1) an income tax on individuals 

and corporations (which consist of both a “regular” income tax and an alternative minimum tax); 

(2) employment taxes on wages (and corresponding taxes on self-employment income); (3) 

estate, gift, and generation skipping taxes, and (4) excise taxes on selected goods and services. 

This document provides general data related to each of these elements.2

 1

 This document may be cited as follows: Joint Committee on Taxation, Selected Data Related 

to the Federal Tax System (JCX-11-07), March 14, 2007. Available at http://www.house.gov/jct. 

2

 Joint Committee on Taxation, Overview of the Federal Tax System as in Effect for 2007

(JCX-2-07), January 12, 2007, provides a description of these four elements. 
2 

A. Federal Tax System at a Glance 

Tables 1 through 3 below show data from 1950 to 2006 on the aggregate receipts 

collected from the individual income tax, the corporate income tax, payroll taxes, excise taxes, 

the estate and gift taxes, and other receipts. Table 1 shows the aggregate revenues collected by 

source, in millions of dollars. 

Table 2 shows the same aggregate revenues by source, but as a percentage of GDP. As a 

share of GDP, the individual income tax has generally oscillated around its average value of 8.1 

percent over this period of time. By contrast, corporate income taxes and excise taxes have 

generally declined as a share of GDP during this period, while payroll taxes have risen 

substantially as a share of GDP over this period. In 2006, total taxes averaged 18.4 percent of 

GDP, just over the average of the 1950-2005 period of 17.9 percent. 

Table 3 shows Federal receipts by source as a percentage of all Federal receipts. 

Reflecting the same facts as above, the individual income tax has oscillated around its average 

share over this period of 44.9 percent, the corporate and excise taxes have declined as a 

percentage of all revenues, and payroll taxes have risen substantially from around 10 percent of 

the total in the early 1950s to levels varying between 35 and 40 percent in recent years. 

Figure 1 is a pie chart showing the distribution of Federal tax receipts by source for 2005. 

Figure 1.−Aggregate Federal Receipts by Source, 2005

Excise Taxes

3%

Estate and Gift Taxes

1%

Other Receipts

3%

Individual Income Tax

43%

Employment Taxes

37%

Corporate Income Tax

13%
3 

Individual Corporate Estate

Fiscal Income Income Employment[1] Excise and Gift Other[2]

Year Tax Tax Taxes Taxes Taxes Receipts Total

1950 15,755 10,449 4,338 7,550 698 653 39,443

1951 21,616 14,101 5,674 8,648 708 870 51,616

1952 27,934 21,226 6,445 8,852 818 892 66,167

1953 29,816 21,238 6,820 9,877 881 976 69,608

1954 29,542 21,101 7,208 9,945 934 971 69,701

1955 28,747 17,861 7,862 9,131 924 926 65,451

1956 32,188 20,880 9,320 9,929 1,161 1,109 74,587

1957 35,620 21,167 9,997 10,534 1,365 1,307 79,990

1958 34,724 20,074 11,239 10,638 1,393 1,568 79,636

1959 36,719 17,309 11,722 10,578 1,333 1,588 79,249

1960 40,715 21,494 14,683 11,676 1,606 2,317 92,492

1961 41,338 20,954 16,439 11,860 1,896 1,900 94,388

1962 45,571 20,523 17,046 12,534 2,016 1,985 99,676

1963 47,588 21,579 19,804 13,194 2,167 2,228 106,560

1964 48,697 23,493 21,963 13,731 2,394 2,337 112,613

1965 48,792 25,461 22,242 14,570 2,716 3,037 116,817

1966 55,446 30,073 25,546 13,062 3,066 3,642 130,835

1967 61,526 33,971 32,619 13,719 2,978 4,009 148,822

1968 68,726 28,665 33,923 14,079 3,051 4,529 152,973

1969 87,249 36,678 39,015 15,222 3,491 5,227 186,882

1970 90,412 32,829 44,362 15,705 3,644 5,855 192,807

1971 86,230 26,785 47,325 16,614 3,735 6,450 187,139

1972 94,737 32,166 52,574 15,477 5,436 6,919 207,309

1973 103,246 36,153 63,115 16,260 4,917 7,109 230,799

1974 118,952 38,650 75,071 16,844 5,035 8,702 263,224

1975 122,386 40,621 84,534 16,551 4,611 10,387 279,090

1976 131,603 41,409 90,769 16,963 5,216 12,101 298,060

1977 157,626 54,892 106,485 17,548 7,327 11,681 355,559

1978 180,988 59,952 120,967 18,376 5,285 13,993 399,561

1979 217,841 65,677 138,939 18,745 5,411 16,690 463,302

1980 244,069 64,600 157,803 24,329 6,389 19,922 517,112

1981 285,917 61,137 182,720 40,839 6,787 21,872 599,272

1982 297,744 49,207 201,498 36,311 7,991 25,015 617,766

1983 288,938 37,022 208,994 35,300 6,053 24,256 600,562

1984 298,415 56,893 239,376 37,361 6,010 28,430 666,486

1985 334,531 61,331 265,163 35,992 6,422 30,650 734,088

1986 348,959 63,143 283,901 32,919 6,958 33,334 769,215

1987 392,557 83,926 303,318 32,457 7,493 34,602 854,353

1988 401,181 94,508 334,335 35,227 7,594 36,457 909,303

1989 445,690 103,291 359,416 34,386 8,745 39,662 991,190

1990 466,884 93,507 380,047 35,345 11,500 44,686 1,031,969

1991 467,827 98,086 396,016 42,402 11,138 39,572 1,055,041

1992 475,964 100,270 413,689 45,569 11,143 44,644 1,091,279

1993 509,680 117,520 428,300 48,057 12,577 38,267 1,154,401

1994 543,055 140,385 461,475 55,225 15,225 43,262 1,258,627

1995 590,244 157,004 484,473 57,484 14,763 47,862 1,351,830

1996 656,417 171,824 509,414 54,014 17,189 44,204 1,453,062

1997 737,466 182,293 539,371 56,924 19,845 43,393 1,579,292

1998 828,586 188,677 571,831 57,673 24,076 50,955 1,721,798

1999 879,480 184,680 611,833 70,414 27,782 53,265 1,827,454

2000 1,004,462 207,289 652,852 68,865 29,010 62,740 2,025,218

2001 994,339 151,075 693,967 66,232 28,400 57,181 1,991,194

2002 858,345 148,044 700,760 66,989 26,507 52,528 1,853,173

2003 793,699 131,778 712,978 67,524 21,959 54,404 1,782,342

2004 808,959 189,371 733,407 69,855 24,831 53,856 1,880,279

2005 927,222 278,282 794,125 73,094 24,764 56,372 2,153,859

2006 1,043,908 353,915 837,821 73,961 27,877 69,772 2,407,254

[1] Employment taxes comprise old-age and survivors insurance, disability insurance, hospital insurance, railroad

 retirement, railroad social security equivalent account, employment insurance, employee share of Federal employees

 retirement, and certain non-Federal employees retirement.

[2] Other receipts are primarily composed of [1] customs duties and fees, and [2] deposits of earnings by the Federal

 Reserve system.

Source: Office of Management and Budget, Historical Tables, Budget of the U.S. Government, Fiscal Year 2007,

and JCT Calculations.

Table 1.−Aggregate Federal Receipts by Source, 1950-2006

[millions of dollars]
4 

Individual Estate

Fiscal Income Corporate Employment[1] Excise and Gift Other[2]

Year Tax Tax Taxes Taxes Taxes Receipts Total

1950 5.8 3.8 1.6 2.8 0.3 0.2 14.4%

1951 6.7 4.4 1.8 2.7 0.2 0.3 16.1%

1952 8.0 6.1 1.8 2.5 0.2 0.3 19.0%

1953 8.0 5.7 1.8 2.6 0.2 0.3 18.7%

1954 7.8 5.6 1.9 2.6 0.2 0.3 18.5%

1955 7.3 4.5 2.0 2.3 0.2 0.2 16.6%

1956 7.5 4.9 2.2 2.3 0.3 0.3 17.5%

1957 7.9 4.7 2.2 2.3 0.3 0.3 17.8%

1958 7.5 4.4 2.4 2.3 0.3 0.3 17.3%

1959 7.5 3.5 2.4 2.2 0.3 0.3 16.1%

1960 7.9 4.2 2.8 2.3 0.3 0.4 17.9%

1961 7.8 3.9 3.1 2.2 0.4 0.4 17.8%

1962 8.0 3.6 3.0 2.2 0.4 0.3 17.6%

1963 7.9 3.6 3.3 2.2 0.4 0.4 17.8%

1964 7.6 3.7 3.4 2.1 0.4 0.4 17.6%

1965 7.1 3.7 3.2 2.1 0.4 0.4 17.0%

1966 7.4 4.0 3.4 1.7 0.4 0.5 17.4%

1967 7.6 4.2 4.0 1.7 0.4 0.5 18.3%

1968 7.9 3.3 3.9 1.6 0.4 0.5 17.7%

1969 9.2 3.9 4.1 1.6 0.4 0.6 19.7%

1970 8.9 3.2 4.4 1.6 0.4 0.6 19.0%

1971 8.0 2.5 4.4 1.5 0.3 0.6 17.3%

1972 8.0 2.7 4.5 1.3 0.5 0.6 17.6%

1973 7.9 2.8 4.8 1.2 0.4 0.5 17.7%

1974 8.3 2.7 5.2 1.2 0.3 0.6 18.3%

1975 7.8 2.6 5.4 1.1 0.3 0.7 17.9%

1976 7.6 2.4 5.2 1.0 0.3 0.7 17.2%

1977 8.0 2.8 5.4 0.9 0.4 0.6 18.0%

1978 8.2 2.7 5.5 0.8 0.2 0.6 18.0%

1979 8.7 2.6 5.6 0.7 0.2 0.7 18.5%

1980 9.0 2.4 5.8 0.9 0.2 0.7 19.0%

1981 9.4 2.0 6.0 1.3 0.2 0.7 19.6%

1982 9.2 1.5 6.2 1.1 0.2 0.8 19.1%

1983 8.4 1.1 6.1 1.0 0.2 0.7 17.5%

1984 7.8 1.5 6.2 1.0 0.2 0.7 17.4%

1985 8.1 1.5 6.4 0.9 0.2 0.7 17.7%

1986 7.9 1.4 6.4 0.7 0.2 0.8 17.4%

1987 8.4 1.8 6.5 0.7 0.2 0.7 18.4%

1988 8.0 1.9 6.7 0.7 0.2 0.7 18.2%

1989 8.3 1.9 6.7 0.6 0.2 0.7 18.4%

1990 8.1 1.6 6.6 0.6 0.2 0.8 18.0%

1991 7.9 1.7 6.7 0.7 0.2 0.7 17.8%

1992 7.6 1.6 6.6 0.7 0.2 0.7 17.5%

1993 7.8 1.8 6.5 0.7 0.2 0.6 17.6%

1994 7.8 2.0 6.6 0.8 0.2 0.6 18.1%

1995 8.1 2.1 6.6 0.8 0.2 0.7 18.5%

1996 8.5 2.2 6.6 0.7 0.2 0.6 18.9%

1997 9.0 2.2 6.6 0.7 0.2 0.5 19.3%

1998 9.6 2.2 6.6 0.7 0.3 0.6 20.0%

1999 9.6 2.0 6.7 0.8 0.3 0.6 20.0%

2000 10.3 2.1 6.7 0.7 0.3 0.6 20.9%

2001 9.9 1.5 6.9 0.7 0.3 0.6 19.8%

2002 8.3 1.4 6.8 0.6 0.3 0.5 17.9%

2003 7.3 1.2 6.6 0.6 0.2 0.5 16.5%

2004 7.0 1.6 6.4 0.6 0.2 0.5 16.3%

2005 7.6 2.3 6.5 0.6 0.2 0.5 17.5%

2006 8.0 2.7 6.4 0.6 0.2 0.5 18.4%

1950-2006 Avg. 8.1 2.8 4.9 1.3 0.3 0.5 18.0%

[1] Employment taxes comprise old-age and survivors insurance, disability insurance, hospital insurance, railroad

 retirement, railroad Social Security equivalent account, employment insurance, employee share of Federal employees

 retirement, and certain non-Federal employees retirement.

[2] Other receipts are primarily composed of (1) customs duties and fees, and (2) deposits of earnings by the Federal

 Reserve system.

Source: Office of Management and Budget, Historical Tables, Budget of the U.S. Government, Fiscal Year 2007;

Economic Report of the President, 2007, Table B-78 for fiscal year GDP Figures.

Table 2.−Federal Receipts by Source, As a Percentage of GDP, 1950-2006
5 

Individual Estate

Fiscal Income Corporate Employment[1] Excise and Gift Other[2]

Year Tax Tax Taxes Taxes Taxes Receipts

1950 39.9 26.5 11.0 19.1 1.8 1.7

1951 41.9 27.3 11.0 16.8 1.4 1.7

1952 42.2 32.1 9.7 13.4 1.2 1.3

1953 42.8 30.5 9.8 14.2 1.3 1.4

1954 42.4 30.3 10.3 14.3 1.3 1.4

1955 43.9 27.3 12.0 14.0 1.4 1.4

1956 43.2 28.0 12.5 13.3 1.6 1.5

1957 44.5 26.5 12.5 13.2 1.7 1.6

1958 43.6 25.2 14.1 13.4 1.7 2.0

1959 46.3 21.8 14.8 13.3 1.7 2.0

1960 44.0 23.2 15.9 12.6 1.7 2.5

1961 43.8 22.2 17.4 12.6 2.0 2.0

1962 45.7 20.6 17.1 12.6 2.0 2.0

1963 44.7 20.3 18.6 12.4 2.0 2.1

1964 43.2 20.9 19.5 12.2 2.1 2.1

1965 41.8 21.8 19.0 12.5 2.3 2.6

1966 42.4 23.0 19.5 10.0 2.3 2.8

1967 41.3 22.8 21.9 9.2 2.0 2.7

1968 44.9 18.7 22.2 9.2 2.0 3.0

1969 46.7 19.6 20.9 8.1 1.9 2.8

1970 46.9 17.0 23.0 8.1 1.9 3.0

1971 46.1 14.3 25.3 8.9 2.0 3.4

1972 45.7 15.5 25.4 7.5 2.6 3.3

1973 44.7 15.7 27.3 7.0 2.1 3.1

1974 45.2 14.7 28.5 6.4 1.9 3.3

1975 43.9 14.6 30.3 5.9 1.7 3.7

1976 44.2 13.9 30.5 5.7 1.7 4.1

1977 44.3 15.4 29.9 4.9 2.1 3.3

1978 45.3 15.0 30.3 4.6 1.3 3.5

1979 47.0 14.2 30.0 4.0 1.2 3.6

1980 47.2 12.5 30.5 4.7 1.2 3.9

1981 47.7 10.2 30.5 6.8 1.1 3.6

1982 48.2 8.0 32.6 5.9 1.3 4.0

1983 48.1 6.2 34.8 5.9 1.0 4.0

1984 44.8 8.5 35.9 5.6 0.9 4.3

1985 45.6 8.4 36.1 4.9 0.9 4.2

1986 45.4 8.2 36.9 4.3 0.9 4.3

1987 45.9 9.8 35.5 3.8 0.9 4.1

1988 44.1 10.4 36.8 3.9 0.8 4.0

1989 45.0 10.4 36.3 3.5 0.9 4.0

1990 45.2 9.1 36.8 3.4 1.1 4.3

1991 44.3 9.3 37.5 4.0 1.1 3.8

1992 43.6 9.2 37.9 4.2 1.0 4.1

1993 44.2 10.2 37.1 4.2 1.1 3.3

1994 43.1 11.2 36.7 4.4 1.2 3.4

1995 43.7 11.6 35.8 4.3 1.1 3.5

1996 45.2 11.8 35.1 3.7 1.2 3.0

1997 46.7 11.5 34.2 3.6 1.3 2.7

1998 48.1 11.0 33.2 3.3 1.4 3.0

1999 48.1 10.1 33.5 3.9 1.5 2.9

2000 49.6 10.2 32.2 3.4 1.4 3.1

2001 49.9 7.6 34.9 3.3 1.4 2.9

2002 46.3 8.0 37.8 3.6 1.4 2.8

2003 44.5 7.4 40.0 3.8 1.2 3.1

2004 43.0 10.1 39.0 3.7 1.3 2.9

2005 43.0 12.9 36.9 3.4 1.1 2.6

2006 43.4 14.7 34.8 3,1 1.2 2.9

1950-2006 Avg. 44.9 15.8 27.3 7.5 1.5 3.0

[1] Employment taxes comprise old-age and survivors insurance, disability insurance, hospital insurance, railroad

 retirement, railroad Social Security equivalent account, employment insurance, employee share of Federal employees

 retirement, and certain non-Federal employees retirement.

[2] Other receipts are primarily composed of (1) customs duties and fees, and (2) deposits of earnings by the Federal

 Reserve system.

Source: Office of Management and Budget, Historical Tables, Budget of the U.S. Government, Fiscal Year 2007.

Table 3.−Federal Receipts by Source, As a Percentage of Total Revenues,

1950-2006
6 

B. Selected Data Related to Individuals 

Income of individuals

Figure 2 shows the 2005 distribution of gross income by source for all individual 

taxpayers (includes data from taxable returns and those with no tax liability). The largest 

category by far is wage and salary income (70.9 percent of gross income) followed by Social 

Security, pension and IRA distributions (9.3 percent) and business, farm and schedule E income 

(8.6 percent). 

Table 4 shows the distribution by income class of the individual income tax, payroll 

taxes, and total Federal taxes (excluding corporate and estate and gift taxes) for 2006. 

Figure 2.−Sources of Gross Income for All Individual Taxpayers

2005

Interest income

1.8%

Dividend income

1.9%

Other

Social security, and pension and 0.5%

IRA distributions

9.3%

Capital gains

6.9%

Business, Farm, and Sch E

8.6%

Wages and salaries

70.9%
7 

Income Category[1]

Dollars in 

billions Percent

Dollars in 

Billions Percent

Dollars in 

billions Percent

Below $10,000 ........................................ -6 -0.6% 8 1.0% 6 0.3%

$10,000 to $20,000 .................................. -15 -1.6% 25 3.1% 15 0.8%

$20,000 to $30,000 .................................. -6 -0.6% 39 4.9% 39 2.2%

$30,000 to $40,000 .................................. 7 0.8% 50 6.3% 64 3.5%

$40,000 to $50,000 .................................. 21 2.2% 57 7.1% 84 4.6%

$50,000 to $75,000 .................................. 80 8.4% 139 17.4% 233 12.7%

$75,000 to $100,000 ................................ 92 9.6% 126 15.8% 229 12.5%

$100,000 to $200,000 .............................. 271 28.3% 251 31.5% 538 29.4%

$200,000 and over ................................... 514 53.7% 103 12.9% 623 34.0%

 Total ................................................... 959 100.0% 797 100.0% 1,831 100.0%

[1] The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: (1) tax exempt interest, (2) employer contributions

 for health plans and life insurance, (3) employer share of FICA tax, (4) workers compensation, (5) nontaxable social security benefits, (6) insurance value

 of medicare benefits, (7) alternative minimum tax preference items, and (8) excluded income of U.S. citizens living abroad.

[2] Federal taxes are equal to individual income tax (including the outlay portion of the EITC), employment tax (attributed to employees), and excise taxes

 (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to uncertainty concerning the incidence of these taxes.

Note: Details may not add to totals due to rounding.

Source: Joint Committee on Taxation.

Table 4.−Distribution of Individual Income Tax, FICA and SECA Tax, and Total Federal Taxes

2006 Projection

Individual Income Tax FICA and SECA Tax Total Federal Taxes[2]

Exclusions and deductions of individuals

Not all of a taxpayer’s income is subject to tax. Certain items are excluded from the 

determination of a taxpayer’s gross income3, such as pension contributions. Other items are 

deductible from a taxpayer’s gross income to determine taxable income, such as mortgage 

interest payments. Such exclusions and deductions are termed “tax expenditures.”4

 Table 5 

provides estimates of some of the larger tax expenditures applicable to individual taxpayers for 

the years 2006 to 2010. Table 6 provides data on the distribution of tax returns that claim the 

standard deduction versus those claiming itemized deductions. More than two-thirds of filers 

claim the standard deduction. In general, the higher one’s income the more likely one will have 

itemized deductions that exceed the standard deduction. Table 6 shows that taxpayers claiming 

itemized deductions exceed those claiming the standard deduction for income brackets above 

 3

 Under the Internal Revenue Code of 1986, gross income means “income from whatever source 

derived” except for certain items specifically exempt or excluded by statute. 

4

 “Tax expenditures” are defined under the Congressional Budget and Impoundment Control Act 

of 1974 (Pub. L. No. 93-344, sec. 3(3)), as “revenue losses attributable to provisions of the Federal tax 

laws which allow a special exclusion, exemption, or deduction from gross income or which provide a 

special credit, a preferential rate of tax, or a deferral of tax liability.” For a complete discussion of tax 

expenditures and how they are estimated, see Joint Committee on Taxation, Estimates of Federal Tax 

Expenditures for Fiscal Years 2006-2010 (JCS-2-06), April 25, 2006. 
8 

$75,000. Table 7 shows the distribution of taxpayers claiming the major itemized deductions, 

which are defined here as those for charitable contributions, mortgage interest, and State and 

local taxes. Table 8 shows the distribution of claimants of selected tax expenditure items and the 

estimate of the amount of the tax expenditure. This table includes separate estimates for the 

mortgage interest deduction, the State and local taxes deduction, the child credit, education 

credits, the student loan interest deduction, and the charitable contributions deduction. 

Table 5.−Selected Tax Expenditure Estimates, for Individuals Fiscal Years 2006 - 2010 

[Billions of Dollars] 

2006 2007 2008 2009 2010 2006-10

Net exclusion of pension contributions and earnings (employer plans, 

individual retirement accounts, and Keogh plans) 124.7 134.5 141.5 149.0 156.7 706.4

Exclusion of employer contributions for health care, health insurance 

premiums, and long-term care insurance premiums [1] 90.6 99.7 107.0 114.5 122.2 534.0

Reduced rates of tax on dividends and long-term capital gains 92.1 94.0 97.7 99.9 95.8 479.6

Deduction for mortgage interest on owner-occupied residences 69.4 75.6 80.7 85.9 91.1 402.7

Exclusion of capital gains at death 50.9 51.9 53.2 69.7 64.5 290.2

Tax credit for children under age 17 [2] 46.0 45.9 46.1 46.0 46.0 230.0

Earned income credit (EIC)[2] 42.1 42.8 43.5 44.5 45.4 218.3

Deduction for charitable contributions, other than for education and 

health 29.1 31.9 34.2 36.8 38.4 170.4

Exclusion of benefits provided under cafeteria plans [3] 27.9 30.6 33.4 36.6 40.0 168.5

Deduction of nonbusiness State and local government income, sales 

taxes and personal property taxes [4] 40.4 38.6 29.2 28.3 28.6 165.1

[1] Estimate includes employer-provided health insurance purchased through cafeteria plans. 

[2] Tax expenditure estimate includes refundable amounts, amounts used to offset income taxes, and amounts used to offset other taxes. 

 tax credit and earned income tax credit used to offset other than income tax or paid out as refund is: $50.1 billion in 2006, $51.6 billion in 2007

 $51.4 billion in 2008, $52.2 billion in 2009, and $53.2 in 2010.

[3] Estimate includes amounts of employer-provided health insurance purchased through cafeteria plans, health care purchased through health

 flexible spending arrangements, and dependent care purchased through dependent care flexible spending arrangements. The health

 insurance and health care flexible spending arrangement amounts are also included in the tax expenditure on the second line of this table.

[4] Deduction for State and local sales taxes expires after December 31, 2007.

Source: Joint Committee on Taxation.
9 

Table 6.–Tax Returns that Claim the Standard Deduction and Tax Returns 

that Itemize 2005 Projections 

Standard Deduction Itemized Deduction 

Income Category[1] Number of 

Tax Returns 

(thousands) 

Dollars 

(millions) 

Number of 

Tax Returns 

(thousands) 

Dollars 

(millions) 

Below $10,000 ................................. 30,170 167,189 903 17,166 

$10,000 to $20,000 .......................... 20,427 131,685 1,274 14,612 

$20,000 to $30,000 .......................... 15,664 111,569 2,313 28,495 

$30,000 to $40,000 .......................... 12,206 90,867 3,379 43,231 

$40,000 to $50,000 .......................... 8,830 67,572 4,314 58,350 

$50,000 to $75,000 .......................... 12,230 105,974 10,247 157,857 

$75,000 to $100,000 ........................ 5,001 48,445 8,696 153,625 

$100,000 to $200,000 ...................... 2,879 28,538 13,449 306,416 

$200,000 and over............................ 322 3,078 3,909 234,461 

Total ................................................ 107,728 754,918 48,483 1,014,214 

[1] The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: 

(1) tax exempt interest, (2) employer contributions for health plans and life insurance, (3) employer share of 

FICA tax, (4) workers compensation, (5) nontaxable social security benefits, (6) insurance value of medicare 

benefits, (7) alternative minimum tax preference items, and (8) excluded income of U.S. citizens living abroad. 

Note: Details may not add to totals due to rounding. 

Source: Joint Committee on Taxation. 
10 

Table 7.–Returns Claiming Major Itemized Deductions 

2005 Projections 

[thousands] 

Returns with 

itemized 

deductions 

Returns with 

all major 

itemized 

deductions 

Returns with 

any major 

itemized 

deductions 

Returns with 

only major 

itemized 

deductions 

Below $10,000 ................................. 903 175 894 281 

$10,000 to $20,000 .......................... 1,274 506 1,265 394 

$20,000 to $30,000 .......................... 2,313 1,091 2,309 754 

$30,000 to $40,000 .......................... 3,379 1,794 3,375 1,294 

$40,000 to $50,000 .......................... 4,314 2,594 4,311 1,874 

$50,000 to $75,000 .......................... 10,247 7,052 10,233 5,115 

$75,000 to $100,000 ........................ 8,696 6,697 8,687 5,236 

$100,000 to $200,000 ...................... 13,449 11,098 13,448 9,361 

$200,000 and over............................ 3,909 3,207 3,909 3,098 

Total ................................................ 48,483 34,215 48,430 27,407 

Major itemized deductions are defined as: charitable contributions, mortgage interest, and State and local taxes. 

[1] The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: 

(1) tax exempt interest, (2) employer contributions for health plans and life insurance, (3) employer share of 

FICA tax, (4) workers compensation, (5) nontaxable social security benefits, (6) insurance value of medicare 

benefits, (7) alternative minimum tax preference items, and (8) excluded income of U.S. citizens living abroad. 
11 

Income Class[2] Returns in 

thousands

Tax Expenditure 

Amount 

(dollars in millions)

Below $10,000 ............................................................ 342 $4

$10,000 to $20,000 .............................................................. 754 83

$20,000 to $30,000 .............................................................. 1,459 426

$30,000 to $40,000 .............................................................. 2,262 982

$40,000 to $50,000 .............................................................. 3,112 1,914

$50,000 to $75,000 .............................................................. 8,073 7,545

$75,000 to $100,000 ............................................................ 7,326 8,587

$100,000 to $200,000 .......................................................... 11,656 25,081

$200,000 and over ............................................................... 3,188 17,475

 Total ................................................................................ 38,171 $62,097

State and local income, sales, and 

personal property tax deduction 

 Income Class[2] Returns in 

thousands

Tax Expenditure 

Amount 

(dollars in millions)

Below $10,000 ..................................................................... 20 $1

$10,000 to $20,000 .............................................................. 447 25

$20,000 to $30,000 .............................................................. 1,479 141

$30,000 to $40,000 .............................................................. 2,696 378

$40,000 to $50,000 .............................................................. 3,885 777

$50,000 to $75,000 .............................................................. 10,113 3,300

$75,000 to $100,000 ............................................................ 8,946 4,081

$100,000 to $200,000 .......................................................... 13,401 13,387

$200,000 and over ............................................................... 3,192 17,881

 Total ................................................................................ 44,178 $39,969

Footnotes appear at the end of the table.

Mortgage interest deduction 

Table 8.−Distribution by Income Class of selected Individual Tax Expenditures Items,

at 2005 Rates and 2005 Income Levels[1]
12 

Returns in 

thousands

Tax Expenditure 

Amount 

(dollars in millions)

Below $10,000 ..................................................................... 188 $211

$10,000 to $20,000 .............................................................. 3,252 1,846

$20,000 to $30,000 .............................................................. 4,509 5,300

$30,000 to $40,000 .............................................................. 4,248 6,433

$40,000 to $50,000 .............................................................. 3,506 5,821

$50,000 to $75,000 .............................................................. 6,363 10,938

$75,000 to $100,000 ............................................................ 4,554 7,912

$100,000 to $200,000 .......................................................... 5,001 7,619

$200,000 and over ............................................................... 10 8

 Total ................................................................................ 31,631 $46,088

Education credits

(Hope and Lifetime Learning Credits)

 Income Class[2] Returns in 

thousands

Tax Expenditure 

Amount 

(dollars in millions)

Below $10,000 ..................................................................... 6 [3]

$10,000 to $20,000 .............................................................. 754 $165

$20,000 to $30,000 .............................................................. 994 438

$30,000 to $40,000 .............................................................. 1,069 529

$40,000 to $50,000 .............................................................. 1,013 538

$50,000 to $75,000 .............................................................. 1,517 878

$75,000 to $100,000 ............................................................ 1,466 969

$100,000 to $200,000 .......................................................... 635 357

$200,000 and over ............................................................... [4] [3]

 Total ................................................................................ 7,453 $3,875

Footnotes appear at the end of the table.

Child Tax Credit

 Income Class[2] 

Table 8.−Distribution by Income Class of selected Individual Tax Expenditures Items,

at 2005 Rates and 2005 Income Levels--Cont'd
13 

Student loan interest deduction

 Income Class[2] Returns in 

thousands

Tax Expenditure 

Amount 

(dollars in milions)

Below $10,000 ..................................................................... 33 $2

$10,000 to $20,000 .............................................................. 316 17

$20,000 to $30,000 .............................................................. 526 41

$30,000 to $40,000 .............................................................. 749 71

$40,000 to $50,000 .............................................................. 823 108

$50,000 to $75,000 .............................................................. 1,590 188

$75,000 to $100,000 ............................................................ 1,054 129

$100,000 to $200,000 .......................................................... 1,241 210

$200,000 and over ............................................................... --- ---

 Total ................................................................................ 6,332 $766

Charitable contributions 

deduction 

 Income Class[2] Returns in 

thousands

Tax Expenditure 

Amount 

(dollars in milions)

Below $10,000 ..................................................................... 1 [3]

$10,000 to $20,000 .............................................................. 289 $29

$20,000 to $30,000 .............................................................. 1,114 165

$30,000 to $40,000 .............................................................. 2,098 410

$40,000 to $50,000 .............................................................. 3,115 711

$50,000 to $75,000 .............................................................. 8,440 3,000

$75,000 to $100,000 ............................................................ 7,801 3,462

$100,000 to $200,000 .......................................................... 12,598 10,301

$200,000 and over ............................................................... 3,747 17,851

 Total ................................................................................ 39,209 $35,930

Footnotes appear at the end of the table.

Table 8.−Distribution by Income Class of selected Individual Tax Expenditures Items,

at 2005 Rates and 2005 Income Levels--Cont'd
14 

Real estate tax

deduction 

 Income Class[2] Returns in 

thousands

Tax Expenditure 

Amount 

(dollars in milions)

Below $10,000 ..................................................................... 372 [3]

$10,000 to $20,000 .............................................................. 864 $30

$20,000 to $30,000 .............................................................. 1,618 162

$30,000 to $40,000 .............................................................. 2,414 350

$40,000 to $50,000 .............................................................. 3,340 732

$50,000 to $75,000 .............................................................. 8,534 2,929

$75,000 to $100,000 ............................................................ 7,689 3,478

$100,000 to $200,000 .......................................................... 12,356 9,646

$200,000 and over ............................................................... 3,679 4,630

 Total ................................................................................ 40,866 $21,957

[1] Excludes individuals who are dependents of other taxpayers and taxpayers with negative income.

 

[2] The income concept used to place tax returns into classes is adjusted gross income (AGI) plus:

 [1] tax-exempt interest, [2] employer contributions for health plans and life insurance, [3] employer share

 of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits, [6] insurance value

 of Medicare benefits, [7] alternative minimum tax preference items, and [8] excluded income of U.S.

 citizens living abroad.

[3] Less than $500,000.

[4] Less than 500 returns.

Table 8.−Distribution by Income Class of selected Individual Tax Expenditures Items,

at 2005 Rates and 2005 Income Levels--Cont'd

Additional data related to marginal tax rates, the earned income credit, retirement savings 

and the alternative minimum tax

Figures 3 and 4 show the distribution of taxpayers and total taxable income by marginal 

Federal income tax bracket. Figure 3 shows that taxpayers with a 15 percent marginal income 

tax bracket are the largest group (46.9 million taxpayers), and Figure 4 shows that they report the 

most taxable income at their marginal rate ($727.3 billion). However, Figure 4 also shows that 

most taxable income overall (that is, including taxable income that falls in brackets below the 

taxpayer’s marginal rate bracket) is reported by taxpayers with a marginal rate of 25 percent 

($1,502.1 billion). 
15 

44,492

22,004

46,934

24,073

4,293

1,615 943

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Thousands

0% 10% 15% 25% 28% 33% 35%

Marginal Tax Bracket

Figure 3.−Number of Taxpayers By Marginal

Federal Income Tax Rate 2005

113.6 113.6

727.3

1,245.3

429.1

1,502.1

98.7

524.4

88.6

368.7

526.8

829.9

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Billions

10% 15% 25% 28% 33% 35%

Marginal Tax Bracket

Figure 4.−Total Taxable Income of Taxpayers in Each Marginal Rate Bracket

2005

Bracket Taxable Income

Total Taxable Income
16 

A refundable earned income tax credit (“EIC”) is available to low-income workers who 

satisfy certain requirements. The amount of the EIC varies depending upon the taxpayer’s earned 

income and whether the taxpayer has one, more than one, or no qualifying children. In 2005, 

over 22 million taxpayers claimed over $40 billion in credits. Table 9 shows the distribution of 

EIC claimants and dollars claimed by type of household. Figure 5 shows the distribution by 

income class of the number of EIC claimants and the dollar amounts claimed. The greatest 

number of claimants and dollars claimed falls in the $10,000 to $20,000 income category. Figure 

6 shows the portion of the aggregate amount of credits claimed that were used to offset tax 

liability, versus amounts that were refunded to taxpayers. Over 90 percent of earned income 

credits are paid as refundable amounts. 

Table 9.− Earned Income Credit by Type of Households 2005 

Type of Household 

Number of 

households 

(thousands) 

EIC 

(dollars 

in millions) 

Percentage 

of total 

EIC dollars 

No Qualifying Children 4,516 1,007 2.5 

One Qualifying Child 8,460 14,577 35.6 

Two or More Qualifying Children 9,461 25,332 61.9 

All Households 22,437 40,916 100 

Source: Joint Committee on Taxation. 
17 

5,542

$6,362 6,305

$15,897

5,015

$11,616

3,836

$5,526

1,547 $1,300

181 $204 12 $11

0

2000

4000

6000

8000

10000

12000

14000

16000

Less than

$10,000

$10,000 -

$20,000

$20,000 -

$30,000

$30,000 -

$40,000

$40,000 -

$50,000

$50,000 -

$75,000

More than

$75,000

Income Categories

Figure 5.−Distribution of the Earned Income Credit

2005

Number of Returns (thousands)

Dollar Amount of EIC (millions)

Thousands of Returns; Millions of Dollars

[1] The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: (1) tax exempt 

interest, (2) employer contributions for health plans and life insurance, (3) employer share of FICA tax, (4) workers 

compensation, (5) nontaxable social security benefits, (6) insurance value of medicare benefits, (7) alternative minimum tax 

preference items, and (8) excluded income of U.S. citizens living abroad. 
18 

Figure 6.−Earned Income Credit: Total Cost and Portion

Representing Refunds to Individuals Projected in 2005

Total 40.916 Billion

Reduction in Tax Liability

$3,776,000,000

9.2%

Refunds to Individuals

$37,140,000,000

90.8%

Certain provisions in the Internal Revenue Code exist to encourage taxpayers to save for 

their retirement by providing favorable tax treatment for contributions to individual retirement 

arrangements (IRAs) and for elective deferrals to employer-based or self-employed retirement 

plans. Table 10 shows the distribution of contributions to such accounts for 2003. Additionally, 

Table 11 shows historical claims of deductible contributions to IRAs. Such contributions peaked 

during the 1982 - 1986 period when no limits related to participation in other plans, or adjusted 

gross income, prevailed. 
19 

Number of tax returns 

(thousands) Millions of dollars

Number of tax returns 

(thousands) Millions of dollars

Number of tax returns 

(thousands) Millions of dollars

Below $10,000 ....................... 76 171 230 414 407 431

$10,000 to $20,000 ................. 190 386 344 479 1,473 1,072

$20,000 to $30,000 ................. 354 797 497 761 3,308 3,860

$30,000 to $40,000 ................. 433 1,098 608 1,023 4,084 7,076

$40,000 to $50,000 ................. 477 1,313 558 1,130 3,897 9,254

$50,000 to $75,000 ................. 812 2,334 1,111 2,800 8,460 28,236

$75,000 to $100,000 ............... 412 1,348 881 2,737 6,346 31,136

$100,000 to $200,000 ............. 536 1,918 953 3,685 7,186 60,099

$200,000 and over .................. 113 591 2 7 1,805 28,415

 Total .............................. 3,405 9,956 5,184 13,037 36,965 169,579

[1] The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: (1) tax exempt interest,

 (2) employer contributions for health plans and life insurance, (3) employer share of FICA tax, (4) workers compensation,

 (5) nontaxable social security benefits, (6) insurance value of medicare benefits, (7) alternative minimum tax preference items, and

 (8) excluded income of U.S. citizens living abroad.

Source: Joint Committee on Taxation.

Deductible IRA Contributions Roth IRA Contributions

Elective Deferrals to Employer Plans and 

Self-Employed Retirement Contributions

Table 10.−Distribution of Retirement Plan Contributions

2003

Income Categories
20 

Returns Claiming Deductions

IRA Deduction Percentage of Claimed

Year (thousands) all Returns (millions)

1975 1,212 1.5 1,436

1976 1,641 1.9 1,968

1977 2,003 2.3 2,458

1978 2,383 2.7 2,970

1979 2,452 2.6 3,199

1980 2,564 2.7 3,431

1981 3,415 3.6 4,750

1982 12,010 12.6 28,274

1983 13,613 14.1 32,061

1984 15,233 15.3 35,374

1985 16,206 15.9 38,212

1986 15,548 15.0 37,786

1987 7,319 6.8 14,066

1988 6,361 5.8 11,882

1989 5,825 5.2 10,829

1990 5,224 4.6 9,858

1991 4,666 4.1 9,030

1992 4,478 3.9 8,696

1993 4,385 3.8 8,527

1994 4,319 3.7 8,389

1995 4,301 3.6 8,339

1996 4,375 3.6 8,628

1997 4,069 3.3 8,663

1998 3,868 3.1 8,188

1999 3,687 2.9 7,883

2000 3,552 2.7 7,605

2001 3,448 2.6 7,407

2002 3,278 2.5 9,462

2003 3,418 2.6 10,007

2004 3,331 2.6 10,029

Source: Joint Committee on Taxation.

Table 11.−IRA Participation, 1975-2004
21 

In addition to their regular tax liability, taxpayers may be subject to the alternative 

minimum tax. The alternative minimum tax is a separate calculation of tax liability relying on a 

different tax base, a different rate structure, and more restricted use of tax credits. The taxpayer 

is liable for the regular tax plus any liability as determined under the minimum tax.5

 Table 12 

shows the distribution of alternative minimum tax liability for 2006. 

Table 12.–Distribution of the Alternative Minimum Tax, 2006 

Alternative Minimum Tax and Lost Credits 

Income Class[2]

Returns 

(thousands) 

Amount 

(millions) 

Below $10,000 ................................. 1 $12 

$10,000 to $20,000 .......................... 2 4 

$20,000 to $30,000 .......................... * 1 

$30,000 to $40,000 .......................... * 6 

$40,000 to $50,000 .......................... 3 4 

$50,000 to $75,000 .......................... 57 80 

$75,000 to $100,000 ........................ 120 150 

$100,000 to $200,000 ...................... 1,010 2,237 

$200,000 and over............................ 3,026 22,157 

Total ................................................ 4,220 $24,651 

Note: * indicates less than 500 returns. 

Source: Joint Committee on Taxation. 

 5

 For a complete discussion of the alternative minimum tax, see Joint Committee on Taxation, 

Present Law and Background Relating to the Individual Alternative Minimum Tax (JCX-10-07), March 5, 

2007. 
22 

C. Selected Data Related to Corporations and Other Businesses 

Table 13 shows the distribution of C corporation income tax returns by corporation asset 

size and by industry. The table also shows the amount of income tax paid (after credits) and the 

percentage distribution of such income tax paid by asset size and industry. 

Tables 14 and 15 show similar data for S-corporations and for partnerships. Because 

such entities are pass-through entities, generally no entity-level income tax is owed. 

Table 16 shows the distribution of sole proprietorships by industry; asset size data is not 

available. 

For these tables, net income has been defined in a way that is consistent with data that are 

published in reports by the Statistics of Income Division of the Internal Revenue Service. Thus, 

the definition of net income differs between entity types. For instance, C corporation net income 

includes dividends, interest, rents, royalties, and capital gains. For an S corporation, none of 

these items is included. For a sole proprietorship, only interest income is included. For a 

partnership, net income includes rental real estate income, other net rental income, interest, 

dividends, and royalties; but most capital gains are excluded. 
23 

Table 13.– Distribution of C Corporations 

by Asset Size and Industry, 2004 

[Returns in thousands, dollars in millions]

Returns Income Tax After Credits 

By total Asset Size

Firms with 

without Net 

Income 

Firms with 

Net Income Amount Percentage of Total 

0...................................................................... 252 94 2,713 1 

$1 – $499,999 ................................................. 1,377 659 1,534 1 

$500,000 – 999,999 ........................................ 158 100 944 0 

$1,000,000 – 4,999,999 .................................. 171 112 3,493 2 

$5,000,000 – 9,999,999 .................................. 28 18 2,404 1 

$10,000,000 – 24,999,999 .............................. 19 12 3,441 2 

$25,000,000 – 49,999,999 .............................. 9 6 3,212 1 

$50,000,000 – 99,999,999 .............................. 7 5 3,832 2 

$100,000,000 – 249,999,999 .......................... 7 5 7,377 3 

$250,000,000 – 499,999,999 .......................... 4 3 7,585 3 

$500,000,000 – 2,499,999,999 ....................... 5 4 29,322 13 

$2,500,000,000 and more ............................... 2 2 156,869 70 

Total, all returns ........................................... 2,040 1,019 2,22723 100 

By Industry

Agriculture, Forestry, Fishing, & Hunting 62 36 783 0 

Mining 14 7 3,381 2 

Utilities 5 2 4,007 2 

Construction 232 117 6,350 3 

Manufacturing 131 64 58,122 26 

Wholesale Trade 173 99 17,128 8 

Retail Trade 228 114 21,541 10 

Wholesale & Retail Trade Not Allocable 1 * 1 * 

Transportation and Warehousing 76 35 4,375 2 

Information 53 22 14,040 6 

Finance & Insurance 97 62 47,554 21 

Real Estate and Rental and Leasing 209 106 2,670 1 

Professional, Scientific, and Technical 

 Services 242 114 3,889 2 

Management of Companies (Holding Cos.) 25 13 21,310 14 

Administrative, Support, Waste Management,

 and Remediation Services 77 36 1,452 1 

Educational Services 16 8 460 0 

Health Care and Social Assistance 145 67 2,474 1 

Arts, Entertainment, and Recreation 36 14 329 0 

Accommodation and Food Services 89 40 2,333 1 

Other Services 129 64 522 * 

Not Allocable 1 * 1 * 

Total, all returns 2,040 1,019 222,723 100 

Note: * indicates less than 500 returns. 
24 

Table 14.–Distribution of S Corporations by Assets, 2004 

By Asset Size and Industry 

[Returns in thousands] 

Returns

By total Asset Size

Firms with and without 

Net Income 

Firms with 

Net Income 

0 ...................................................................... 450 211 

$1 – $499,999.................................................. 2,590 1,598 

$500,000 – 999,999......................................... 198 118 

$1,000,000 – 4,999,999................................... 215 125 

$5,000,000 – 9,999,999................................... 33 23 

$10,000,000 – 24,999,999............................... 21 14 

$25,000,000 – 49,999,999............................... 6 4 

$50,000,000 – 99,999,999............................... 3 2 

$100,000,000 – 249,999,999........................... 2 1 

$250,000,000 – 499,999,999........................... * * 

$500,000,000 – 2,499,999,999........................ * * 

$2,500,000,000 and more................................ * * 

Total, all returns............................................ 3,518 2,097 

By Industry

Agriculture, Forestry, Fishing, & Hunting 80 64 

Mining 17 10 

Utilities 2 18 

Construction 489 2 

Manufacturing 151 87 

Wholesale Trade 203 19 

Retail Trade 393 21 

Wholesale & Retail Trade Not Allocable 3 62 

Transportation and Warehousing 107 17 

Information 71 14 

Finance & Insurance 142 192 

Real Estate and Rental and Leasing 395 661 

Professional, Scientific, and Technical 

 Services 538 100 

Management of Companies (Holding Cos.) 25 14 

Administrative, Support, Waste 

 Management, and Remediation Services 168 30 

Educational Services 28 5 

Health Care and Social Assistance 226 36 

Arts, Entertainment, and Recreation 83 19 

Accommodation and Food Services 192 46 

Other Services 204 35 

Not Allocable 2 * 

Total, all returns 3,518 1,441 

Note: * indicates less than 500 returns. 
25 

Table 15.–Distribution of Partnerships by Asset Size and Industry, 2004 

[Returns in thousands] 

Returns

By total Asset Size

Firms with and without 

Net Income 

Firms with 

Net Income 

0 ...................................................................... 696 362 

$1 – $499,999.................................................. 1,056 607 

$500,000 – 999,999......................................... 250 144 

$1,000,000 – 4,999,999................................... 388 233 

$5,000,000 – 9,999,999................................... 75 43 

$10,000,000 – 24,999,999............................... 46 28 

$25,000,000 – 49,999,999............................... 16 10 

$50,000,000 – 99,999,999............................... 9 6 

$100,000,000 – 249,999,999........................... 6 4 

$250,000,000 – 499,999,999........................... 2 2 

$500,000,000 – 2,499,999,999........................ 2 2 

$2,500,000,000 and more................................ * * 

Total, all returns............................................ 2,547 1,441 

By Industry

Agriculture, Forestry, Fishing, & Hunting 120 64 

Mining 26 18 

Utilities 4 2 

Construction 155 87 

Manufacturing 43 19 

Wholesale Trade 43 21 

Retail Trade 136 62 

Transportation and Warehousing 34 17 

Information 35 14 

Finance & Insurance 269 192 

Real Estate and Rental and Leasing 1,180 661 

Professional, Scientific, and Technical 

 Services 164 100 

Management of Companies (Holding Cos.) 24 14 

Administrative, Support, Waste 

 Management, and Remediation Services 52 30 

Educational Services 8 5 

Health Care and Social Assistance 57 36 

Arts, Entertainment, and Recreation 45 19 

Accommodation and Food Services 91 46 

Other Services 58 35 

Not Allocable 3 * 

Total, all returns 2,547 1,441 

Note: * indicates less than 500 returns.
26 

Table 16.–Distribution of Sole Proprietorships by Industry, 2004 

[Returns in thousands] 

Returns

By Industry

Firms with and without

Net Income 

Firms with 

Net Income 

Agriculture, Forestry, Fishing, & Hunting 282 169 

Mining 126 99 

Utilities 12 9 

Construction 2,587 2,127 

Manufacturing 351 224 

Wholesale Trade 351 236 

Retail Trade 2,399 1,201 

Transportation and Warehousing 983 802 

Information 295 195 

Finance & Insurance 673 470 

Real Estate and Rental and Leasing 1,179 840 

Professional, Scientific, and Technical 

 Services 2,951 2,182 

Management of Companies (Holding Cos.) 0 0 

Administrative, Support, Waste 

 Management, and Remediation Services 1,995 1,644 

Educational Services 474 380 

Health Care and Social Assistance 1,778 1,484 

Arts, Entertainment, and Recreation 1,132 676 

Accommodation and Food Services 384 246 

Other Services 2,355 1,834 

Not Allocable 284 232 

Total, all returns 20,591 15,054 
27 

Table 17, which is similar to Table 5 for individuals, shows the largest tax expenditure 

items for C-corporations (S-corporation, partnership, and sole proprietorship income is taxed at 

the individual level, and tax expenditures with respect to such entities would appear on 

individual tax returns). 

Table 17.–Selected Corporate Tax Expenditure Estimates Fiscal Years 2006-2010 

[Billions of Dollars] 

 2006 2007 2008 2009 2010 2006-10

Deferral of active income of controlled foreign 

 corps 

3.4 5.8 6.4 7.0 7.5 30.1 

Inventory property sales source rule exception 6.2 6.4 6.6 6.8 7.0 33.0 

Expensing of research and experimentation 2.0 3.7 5.5 6.0 5.8 23.0 

Tax credit for electricity produced from renewables 2.0 3.7 5.5 6.0 5.8 23.0 

Deduction of unpaid property loss reserves for 

 Property and Casualty Insurance 3.4 3.4 3.5 3.6 3.6 17.5 

Tax credit of low income housing 3.4 3.6 3.8 4.1 4.4 19.3 

Depreciation of excess of ADR 5.7 11.0 17.7 23.4 27.7 85.5 

Reduced rates on first $10 million of corporate 

 income 4.3 4.3 4.3 4.3 4.3 21.5 

Production activity deduction 2.7 3.9 5.5 5.9 7.4 25.4 

Exclusion of interest on State and local bonds 7.3 7.8 8.2 8.6 9.0 40.9 

Source: Joint Committee on Taxation. 
28 

D. Selected Data Related to the Estate Tax 

Table 18 shows the distribution by gross value of the estate of all estate tax returns filed 

in 2005. The threshold size for filing an estate tax return for decedents dying in 2005 was $1.5 

million. However, returns filed in 2005 include returns for decedents dying in 2004, when the 

filing threshold was also $1.5 million, and for decedents dying in 2003, when the filing threshold 

was $1 million. Table 19 shows the same distribution for taxable estates. 

Total Gross Estate Number Millions Number Millions Number Millions Number Millions

Under $2,000,000............................................. 19,544 30,663 7,777 5,159 3,040 1,102 7,057 767

$2,000,000 - $3,500,000.................................. 14,842 38,162 7,133 9,666 2,814 1,703 7,311 3,043

$3,500,000 - $5,000,000.................................. 4,445 18,386 2,239 5,830 1,037 1,099 2,282 2,283

$5,000,000 - $10,000,000................................ 4,122 28,001 2,036 9,545 1,107 2,031 2,280 4,477

$10,000,000 - $20,000,000.............................. 1,358 18,650 686 7,144 455 1,645 822 3,276

$20,000,000 or more........................................ 760 50,833 413 17,490 328 12,835 498 7,823

Total................................................................. 45,071 184,695 20,284 54,834 8,781 20,415 20,250 21,669

Source: JCT tabulations of JCT estate tax file.

Total Gross Estate Number Millions Number Millions Number Millions Number Millions

Under $2,000,000............................................. 7,057 11,501 215 59 932 63 7,057 767

$2,000,000 - $3,500,000.................................. 7,311 18,939 490 307 1,634 336 7,311 3,043

$3,500,000 - $5,000,000.................................. 2,282 9,433 298 412 657 316 2,282 2,283

$5,000,000 - $10,000,000................................ 2,280 15,590 376 935 734 846 2,280 4,477

$10,000,000 - $20,000,000.............................. 822 11,252 199 1325 348 963 822 3,276

$20,000,000 or more........................................ 498 37,300 176 5891 260 11,638 498 7,823

Total................................................................. 20,250 104,015 1,754 8,929 4,565 14,162 20,250 21,669

Source: JCT tabulations of JCT estate tax file.

Table 19.−Taxable Estate Tax Returns Filed in 2005

[Dollars in Millions]

Total Gross Estate Bequests to Spouse Bequests to Charity Estate Tax

[Dollars in Millions]

Table 18.−All Estate Tax Returns Filed in 2005

Total Gross Estate Bequests to Spouse Bequests to Charity Estate Tax
29 

E. Selected Data Related to Excise Taxes 

Table 20 shows the largest Federal excise taxes by revenue raised for fiscal year 2005, as 

well as the rate of tax imposed. The gasoline motor fuel excise tax and the diesel motor fuel 

excise tax are the two largest excise taxes by revenue raised, and collectively account for 44 

percent of the total excise taxes. 

Table 20.–Largest Excise Taxes by Fiscal Year, 2005 

[Collections in Billions](a) 

Excise Tax Rate of Tax(b) Fiscal Year 2005 

Collections 

Gasoline Motor fuel 18.4 cents per gallon(c) 23.7 

Diesel motor fuel 24.4 cents per gallon(c) 9.4 

Domestic cigarettes $19.50 to $40.95 per thousand(e) 7.2 

Transportation by air 7.5 percent of ticket price plus 

$3.10 per flight segment 7.0 

Telephone and teletypewriter services 3 percent 5.9 

Distilled spirits (domestic and imported) $13.50 per proof gallon 4.5 

Beer (domestic and imported) $7 or $18 per barrel(d) 3.6 

Other (non-specified) N/A 13.9 

Total N/A 75.2 

Source: From http://www.irs.gov/pub/irs-soi/histab21.xls 

(a) Collections or liabilities reported by the IRS, Customs Services, and the Alcohol and Tobacco Tax and Trade 

 Bureau. 

(b) Tax rates in effect October 1, 2004. 

(c) Includes 0.1 cents per gallon for the Leaking Underground Storage Tank trust fund. 

(d) Beer brewed, produced, and removed for consumption or sale in the United States, or imported, is taxed at a 

rate of $18.00 per barrel (31 gallons). The tax rate is $7 per barrel (approximately 22.6 cents per gallon) on the 

first 60,000 barrels of beer removed each year by domestic brewers producing less than two million barrels of 

beer during the calendar year. The $18.00 per barrel tax translates to approximately 33 cents per 6-pack of beer. 

(e) Small cigarettes (weighing no more than three pounds per thousand) are taxed at $19.50 per thousand. Large 

cigarettes (weighing more than three pounds per thousand) generally are taxed at $40.95 per thousand. These 

rates equal 39 cents and 81 cents respectively for a pack of 20 cigarettes.