In 2017 Half of Taxpayers Paid 97% of all Federal Income Taxes

The IRS (internal Revenue Service) has released data on individual income for the tax year 2017. The data shows that the U.S tax system continues to be progressive with high income earners contributing the most to tax revenue. Moreover, the share of taxes for the 1% rose as their reported taxable income also rose. This is contrary to the popular view that the rich do not pay their fair share of taxes.

Half of taxpayers paid 97% of All Federal income taxes

In 2017, the top 50% income earners paid 97% of federal tax income, while the bottom 50% paid 3%. The top 5% paid about 60% of total income taxes, with the highest burden falling on the top 1%. The top 1% even paid more taxes than the whole bottom 90%; the top 1% paid 38.5% of all taxes compared to 29.9 for the bottom 90%.


High-Income Taxpayers pay the Highest Average Income Tax Rate

In 2017 the top 1% had the highest effective average income tax rate of 26.8% compared with 4% faced by the bottom 50%. All income levels in the top 50% pay a higher income tax rate compared to individuals in the bottom 50%.

More than anything else, IRS data year after year continues to show the progressivity of the American tax system. high income earners do not only pay their fair share, they pay more than everybody else.