updated 2-Aug-01

DISTRIBUTION OF FEDERAL TAX LIABILITY (1)

Calendar Year 2001
INCOME NUMBER OF INCOME FEDERAL
CATEGORY (2) RETURNS (3) TAX LIABILITY
Millions Percent Billions Percent Billions Percent
Less than $10,000. 19.9 14.0% $83 1.0% $7 0.4%
10,000 to 20,000. 23.3 16.4% 347 4.2% 23 1.4%
20,000 to 30,000. 18.5 13.0% 460 5.6% 56 3.3%
30,000 to 40,000. 15.8 11.1% 549 6.7% 83 4.9%
40,000 to 50,000. 13.4 9.2% 589 7.2% 97 5.7%
50,000 to 75,000. 21.9 15.4% 1,337 16.4% 244 14.4%
75,000 to 100,000.. 12.9 9.1% 1,121 13.7% 235 13.9%
100,000 to 200,000. 12.8 9.0% 1,683 20.6% 397 23.5%
200,000 and over. 3.8 2.7% 1,999 24.5% 547 32.4%
Total, All Taxpayers. 142.0 100.0% $8,168 100.0% $1,689 100.0%
Highest 10%. 14.2 10.0% 3,431 42.0% 890 52.7%
Highest 5%... 7A 5.0% 2,556 31.3% 686 40.6%
Highest 1%............ 1.4 1.0% 1,402 17.2% 391 23.2%

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 and child credit), 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.
(2) 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] 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. 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 income are excluded.


UPDATED DISTRIBUTION OF CERTAIN
FEDERAL TAX LIABILITIES
BY INCOME CLASS FOR CALENDAR YEAR 2001

Prepared by the Staff
of the

JOINT COMMITTEE ON TAXATION

JCX-65-01
August 2, 2001



INTRODUCTION

This document,! prepared by the staff of the Joint Committee on Taxation, shows
the updated distribution for calendar year 2001 of certain Federal tax liabilities of
individuals by income class. This distribution has been updated to reflect changes enacted
in the Economic Growth and Tax Reconciliation Relief Act of 2001 (Public Law 107-16).?

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”) and the child credit. 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 and the child credit), 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.

' This document may be cited as follows: Joint Committee on Taxation, Updated
Distribution of Certain Federal Tax Liabilities by Income Class for Calendar Year 2001
(ICX-65-01), August 2, 2001.

? This document supercedes JCX-2-01.


DISTRIBUTION OF FEDERAL INDIVIDUAL INCOME TAX LIABILITY (1)

updated 2-Aug-01

Calendar Year 2001
NUMBER OF RETURNS
INCOME NUMBER OF INCOME INDIVIDUAL WITH ZERO OR
CATEGORY (2) RETURNS (3) INCOME TAX NEGATIVE LIABILITY
Millions Percent Billions Percent Billions Percent Millions Percent
Less than $10,000. 19.9 14.0% $83 1.0% -$6 -0.7% 18.9 37.4%
10,000 to 20,000.. 23.3 16.4% 347 4.2% -13 1.3% 16.4 32.4%
20,000 to 18.5 13.0% 460 5.6% 3 0.4% 8.5 16.9%
30,000 to 15.8 11.1% 549 6.7% 22 2.4% 3.8 7.5%
40,000 to 13.1 9.2% 589 7.2% 33 3.5% 1.8 3.7%
50,000 to 21.9 15.4% 1,337 16.4% 100 10.6% 1.0 2.0%
75,000 to 100,000. 12.9 9.1% 1,121 13.7% 110 11.6% 0.1 0.2%
100,000 to 200,000. 12.8 9.0% 1,683 20.6% 226 23.9% (4) 0.1%
200,000 and over... 3.8 2.7% 1,999 24.5% 471 49.7% (4) (5)
142.0 100.0% $8,168 100.0% $948 100.0% 50.6 100.0%
14.2 10.0% 3,431 42.0% 670 70.7% (4) 0.1%
Highest 5%. 7A 5.0% 2,556 31.3% 559 59.0% (4) (5)
Highest 1%...........4 1.4 1.0% 1,402 17.2% 357 37.6% (4) (5)

Source: Joint Committee on Taxation
Detail may not add to total due to rounding.

(1) Includes the outlay portion of the EIC and child credit.
(2) 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] 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. 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 income are excluded.

(4) Less than 50,000.
(5) Less than 0.005%.