DISTRIBUTION OF CERTAIN FEDERAL TAX LIABILITIES

BY INCOME CLASS FOR CALENDAR YEAR 2001

Prepared by the Staff

of the

JOINT COMMITTEE ON TAXATION

JCX-2-01

February 27, 2001
1

INTRODUCTION

This document,1 prepared by the staff of the Joint Committee on Taxation, shows 

the distribution for calendar year 2001 of certain Federal tax liabilities of individuals by 

income class. The first table shows the distribution of the Federal individual income tax 

and the second table shows the distribution of the Federal individual income tax, Federal 

excise taxes, and Federal employment taxes.

For purposes of these tables, the income concept used for classifying taxpayers 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) worker’s 

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.

The first table shows the distribution of the Federal individual income tax, 

including the outlay portion of the earned income credit (“EIC”). The table shows, by 

income category, (1) the number of returns and the percent of all returns represented by the 

category, (2) the aggregate income and the percent of all income represented by the 

category, (3) the aggregate individual income taxes paid and the percent of all individual 

income taxes paid by the category, and (4) the number of returns with zero or negative tax 

liability and the percent of all returns with zero or negative tax liability represented by the 

category.

The second table shows the distribution of the combined Federal individual income 

tax (including the outlay portion of the EIC), Federal excise taxes, and Federal 

employment taxes (those taxes required under the Federal Insurance Contributions Act and 

Federal Unemployment Tax Act). The table shows (1) the number of returns and the 

percent of all returns represented by the category, (2) the aggregate income and the percent 

of all income represented by the category, and (3) the aggregate Federal taxes paid and the 

percent of all Federal taxes paid by the category.

 

1

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

Distribution of Certain Federal Tax Liabilities by Income Class for Calendar Year 2001

(JCX-2-01), February 27, 2001.
DISTRIBUTION OF 

FEDERAL INDIVIDUAL INCOME TAX LIABILITY (1)

 Calendar Year 2001

NUMB

INCOME NUMBER OF INCOME INDIVIDUAL WI

CATEGORY (2) RETURNS (3) INCOME TAX NEGA

Millions Percent Billions Percent Billions Percent Millio

Less than $10,000......... 19.9 14.0% $83 1.0% -$6 -0.6% 18. 10,000 to 20,000......... 23.3 16.4% 347 4.2% -10 -1.0% 16. 20,000 to 30,000......... 18.5 13.0% 460 5.6% 9 0.9% 8.1  30,000 to 40,000......... 15.8 11.1% 549 6.7% 28 2.8% 3.2  40,000 to 50,000......... 13.1 9.2% 589 7.2% 39 3.9% 1.4  50,000 to 75,000......... 21.9 15.4% 1,337 16.4% 112 11.1% 0.8  75,000 to 100,000......... 12.9 9.1% 1,121 13.7% 119 11.8% 0.1 100,000 to 200,000........ 12.8 9.0% 1,683 20.6% 237 23.6% (4) 200,000 and over........... 3.8 2.7% 1,999 24.5% 478 47.5% (4) Total, All Taxpayers..... 142.0 100.0% $8,168 100.0% $1,006 100.0% 48. Highest 10%.......... 14.2 10.0% 3,431 42.0% 686 68.2% (4)  Highest 5%............ 7.1 5.0% 2,556 31.3% 570 56.6% (4)  Highest 1%............ 1.4 1.0% 1,402 17.2% 361 35.9% (4) 

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Includes the outlay portion of the EIC.(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferenc [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels. The highest 10% begins at $107,455, the highest 5% at $145,199 and the highest 1% at $340,306.(3) Includes filing and nonfiling units. Individuals who are dependents of other taxpayers and taxpayers with negative inc(4) Less than 50,000.(5) Less than 0.005%.
DISTRIBUTION OF 

FEDERAL TAX LIABILITY (1)

 Calendar Year 2001

INCOME NUMBER OF INCOME FEDERA

CATEGORY (2) RETURNS (3) TAX LIABIL

Millions Percent Billions Percent Billions 

Less than $10,000......... 19.9 14.0% $83 1.0% $7  10,000 to 20,000......... 23.3 16.4% 347 4.2% 26  20,000 to 30,000......... 18.5 13.0% 460 5.6% 62  30,000 to 40,000......... 15.8 11.1% 549 6.7% 89  40,000 to 50,000......... 13.1 9.2% 589 7.2% 102  50,000 to 75,000......... 21.9 15.4% 1,337 16.4% 256  75,000 to 100,000......... 12.9 9.1% 1,121 13.7% 244 100,000 to 200,000........ 12.8 9.0% 1,683 20.6% 408 200,000 and over........... 3.8 2.7% 1,999 24.5% 555 Total, All Taxpayers..... 142.0 100.0% $8,168 100.0% $1,748  Highest 10%.......... 14.2 10.0% 3,431 42.0% 907  Highest 5%............ 7.1 5.0% 2,556 31.3% 696  Highest 1%............ 1.4 1.0% 1,402 17.2% 396 

Source: Joint Committee on Taxation

Detail may not add to total due to rounding.-----------------------------------------------------(1) Federal taxes are equal to individual income tax (including the outlay portion of the EIC), employment tax (attributed to  and excise taxes (attributed to consumers). Corporate income tax and estate and gift taxes are not included due to u concerning the incidence of these taxes.(2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exe interest, [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] worker’s co [5] nontaxable social security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preferenc [8] excluded income of U.S. citizens living abroad. Categories are measured at 2001 levels. The highest 10% begins at $107,455, the highest 5% at $145,199 and the highest 1% at $340,306.(3) Includes filing and nonfiling units. Individuals who are dependents of other taxpayers and taxpayers with negative inc