I hope someone can help! If if you have any questions please feel free to ask. Thanks in advance!

The Internal Revenue Code which was enacted in 1913 pursuant to a Constitutional Amendment allowing the taxation of income "without apportionment among the several States, and without regard to any census or enumeration". It was completely revised twice (in 1954 and 1986). And it is constantly being revised. Every Presidential Election year brings more calls to make the code more fair or to make the wealthy pay "their fair share". One of our Course Outcomes is to "define what makes a good tax and the uses of tax policy". Post your thoughts on the creation of the Internal Revenue Code, what political issues had to be overcome to collect income tax, the Constitutional issues of a a progressive income tax, and the modern use of the Internal Revenue Code (specifically, the income tax provisions) to promote social issues. Both Presidential candidates have presented economic plans which include their respective philosophies about taxation. Historically, Democrats have repeated their mantra that the rich do not pay their "fair share". Republicans have the philosophy that taxes are a drag on the economy. Which do you feel is correct? To help, I have included two documents addressing who pays. It comes directly from the IRS website. Individual Income Tax Shares, 2012 by Adrian Dungan F or Tax Year 2012, the Statistics of Income (SOI) Division included two new brackets for adjusted gross income (AGI) in the study: the top 0.001 and 0.01 percentiles of individual income tax returns, excluding those led by dependents. Additionally, this article looks at individual income tax shares, while articles in prior SOI Bulletins discussed tax rates and shares for the respective tax years covered. Taxpayers led 136.1 million individual income tax returns, excluding returns led by dependents, for 2012. The average AGI reported on these returns was $66,444, up from $60,894 for the previous year. Total AGI increased 8.7 percent to $9.04 trillion, while total income tax increased 13.7 percent to $1.18 trillion. This rise represents the largest percentage increase in total income tax collected by the Internal Revenue Service in any year of this 10-year study, or Tax Years 2003 through 2012. For Tax Year 2012, the top 0.001 percent of tax returns had an AGI of $62,068,187 or more (Figure A) and accounted for 2.4 percent of total AGI (Figure B). This AGI threshold represents an increase of 47.9 percentthe largest increase of any percentile and year for this group since before 2003over the Figure A Adjusted Gross Income (AGI) Threshold for the Top 0.001 Percent of Returns, Tax Years 2003-2012 [Money amounts are in millions] AGI threshold $70 previous year when the top 0.001 percent of tax returns had an AGI of $41,965,258 or more. The AGI threshold for the top 0.001 percent of returns in 2012 was close to its highest mark in 2007 of $62,955,875. Total AGI for those in the 0.001 percentile increased by 51.1 percent to $219.1 billion from $145.0 billion in 2011. As a result of this increase, returns within the top 0.001 percent had an average reported AGI of $161.0 million per return (Figure C). These returns accounted for 3.3 percent of the total income tax reported in 2012, an increase from 2.5 percent in 2011. In comparison, returns in the next percentile, those in the top 0.01 percent of tax returns with an AGI of about $12 million or more, accounted for 5.5 percent of total AGI, and made up 8.3 percent of total income tax in 2012. The average tax rate for the top 0.001 percent of tax returns for 2012 (17.6 percent) matched the previous low of this 10-year study, which occurred in 2007. This rate was lower than the rates of all percentiles through the top 10 percent of returns for 2012. Taxpayers in the top 1 percent paid the highest average tax rate (22.8 percent) and each successive percentile paid lower average tax rates, falling to 14.3 percent for the top 50 percent of returns. For 2012, taxpayers ling returns that fell in the top 1 percent reported an AGI of $434,682 or more. These taxpayers accounted for 21.9 percent of total AGI for 2012 (Figures D and E). This represents an 11.8-percent increase over the AGI oor for this category in 2011 ($388,905). These taxpayers accounted for 38.1 percent of the total income tax reported in 2012, an increase from 35.1 percent in 2011. $60 Highlights: $50 $40 $30 $20 $10 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Tax year Current Dollars Constant Dollars 2012 For 2012, the adjusted gross income (AGI) threshold for the top 50 percent of all tax returns was $36,055 for the year. These taxpayers accounted for 88.9 percent of total AGI and paid 97.2 percent of total income tax. The top 0.001 percent of tax returns had an AGI of $62,068,187 or more. These taxpayers accounted for 2.4 percent of total AGI, and paid 3.3 percent of total income tax. The top 0.01 percent of tax returns had an AGI of $12,104,014 or more. These taxpayers accounted for 5.5 percent of total AGI, and paid 8.3 percent of total income tax. The top 1 percent of tax returns had an AGI of $434,682 or more. These taxpayers accounted for 21.9 percent of total AGI and paid 38.1 percent of total income tax. The top 3 percent of tax returns accounted for more than half (51.7 percent) of the total income tax paid for Tax Year 2012. Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. Statistics of Income Bulletin | Spring 2015 www.irs.gov/taxstats Individual Income Tax Shares, 2012 Figure B Percentages of Total Adjusted Gross Income (AGI) and Income Tax for Top Thresholds of AGI, Tax Year 2012 Table 2 shows percentiles of returns cumulated upward, starting with the lowest-income returns and presents data for the bottom 5 percentiles: 50 percent, 75 percent, 90 percent, 95 percent, and 99 percent of all returns. In constant dollars, the AGI threshold for the top 50 percent of returns has decreased. In 2003, the cutoff for the top 50 percent of returns was $22,335. The cutoff increased to $22,576 in 2004, and has been trending downward throughout the last 10 years to $20,532 in 2012 (Figure F). The same is true for the top 40, top 30, top 25, and top 20 percent of returns, which all have a lower-AGI cutoff in 2012 than they did in 2003. Conversely, all percentiles from the top 10 percent through the top 0.001 percent have a higher AGI cutoff in 2012 than they did in 2003. As expected for a graduated income tax system, the top 0.001 percent through the top 50 percent of returns recorded a larger share of the income tax compared to their respective share of AGI. In addition, for 2012, every single percentile from the top 0.001 percent through the top 50 percent reported an increase in its share of AGI and its share of income tax in comparison to 2011. For 2012, the top 1 percent of returns reported a 3.0-percent increase in the share of total income tax, which was the largest increase for all percentiles in their respective share of income tax (Table 1). The top 2 percent of returns reported a 3.2-percent increase in their share of AGI, which was the largest percentile Percentages of total AGI and income tax 20% 18.6% 18% 16% AGI 14% Income tax 12% 11.2% 10% 8.3% 8% 5.5% 6% 4% 2.4% 3.3% 2% 0% Top 0.1% Top 0.01% Top 0.001% Top percentile thresholds Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. Figure C Average Adjusted Gross Income by Percentile, Excluding Returns Filed by Dependents, Tax Years 2003-2012 [All figures are estimates based on samplesmoney amounts are in current dollars] Tax year All returns Top 0.001 percent Top 0.01 percent Top 0.1 percent Top 1 percent Top 2 percent Top 5 percent Top 10 percent Top 25 percent Top 50 percent 87,562 2003 50,986 68,905,629 17,059,457 3,855,564 853,087 549,473 315,974 214,210 131,225 2004 54,971 91,373,061 22,891,927 5,024,031 1,043,898 657,417 366,190 242,280 144,418 95,114 2005 59,080 114,971,933 29,083,260 6,286,542 1,251,801 774,849 420,793 272,761 158,503 102,875 2006 62,050 132,840,343 32,588,991 6,968,523 1,371,148 843,261 454,437 292,720 168,545 108,690 2007 64,995 165,406,179 37,970,449 7,765,246 1,485,826 909,094 485,982 311,201 177,858 114,147 2008 61,751 130,366,441 29,946,347 6,214,806 1,246,707 779,656 431,589 283,907 167,191 108,781 2009 57,146 95,205,128 21,240,160 4,535,545 983,734 634,949 367,840 250,144 152,549 100,712 2010 59,539 123,501,481 27,146,782 5,502,277 1,123,533 711,697 402,300 268,923 160,877 105,095 2011 60,894 106,137,628 25,063,182 5,397,705 1,138,993 726,635 412,763 276,382 165,188 107,722 2012 66,444 160,960,323 36,844,062 7,473,964 1,452,625 898,904 489,555 318,040 184,058 118,133 Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. Income and Tax Shares increase in share of total AGI. The amount of AGI needed for inclusion in the top 2 percent of returns (i.e., the AGI threshold) was $285,908, and these returns accounted for more than a quarter (27.1 percent) of total AGI and 46.5 percent of total income tax. For 2011, the returns in this percentile (i.e., those with at least $262,933 in AGI) reported 23.9 percent of total AGI and 43.5 percent of total income tax. The top 5 percent of returns (returns reporting AGI of $175,817 or more) reported 36.8 percent of total AGI and 58.9 percent of income tax for 2012, compared to 33.9 percent of total AGI and 56.5 percent of income tax for the previous year when the AGI oor was Tables 1 and 2 present statistics from 2003 through 2012 on income and tax by cumulative percentiles for returns with positive AGI. Excluded from the data are individual income tax returns led by dependents. The tables show distributions of AGI for each tax year, by descending and ascending cumulative percentiles of returns, and can be used to make comparisons across cumulative percentile classes within each year. Table 1 shows percentiles of returns cumulated downward, starting with the highest-income returns and presents data for the top 14 percentiles: top 0.001 percent through top 50 percent of all returns. Statistics of Income Bulletin 2 Spring 2015 Individual Income Tax Shares, 2012 Figure D Adjusted Gross Income (AGI) Threshold in Current Dollars, Tax Years 2003-2012 AGI threshold $500,000 $450,000 Top 1 percent of returns $400,000 Top 2 percent of returns $350,000 Top 5 percent of returns $300,000 Top 10 percent of returns $250,000 Top 25 percent of returns $200,000 Top 50 percent of returns $150,000 $100,000 $50,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Tax year Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. Figure E Percentages of Total Income Tax and Adjusted Gross Income (AGI), by Different Percentile Thresholds of AGI, Tax Year 2012 Percentile thresholds of AGI 38.1% Top 1% Income tax 21.9% AGI 46.5% Top 2% 27.1% 58.9% Top 5% 36.8% 70.2% Top 10% 47.9% 86.4% Top 25% 69.3% 97.2% Top 50% 88.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentages of total income and AGI tax Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. Statistics of Income Bulletin 3 Spring 2015 Individual Income Tax Shares, 2012 Figure F Adjusted Gross Income (AGI) Threshold in Constant Dollars, Tax Years 2003-2012 AGI threshold $300,000 $250,000 Top 1 percent of returns $200,000 Top 2 percent of returns $150,000 Top 5 percent of returns Top 10 percent of returns $100,000 Top 25 percent of returns $50,000 Top 50 percent of returns $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Tax year Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. $167,728. Returns in the top 10 percent (returns with AGI of at least $125,195) reported 47.9 percent of AGI and paid 70.2 percent of income tax. For 2011, the returns in this percentile (with AGI of $120,136 or more) reported lower percentages of total AGI (45.4 percent) and total income tax (68.3 percent). The top 50 percent of returns for 2012 (reporting AGI of $36,055 or more) accounted for 88.9 percent of AGI and paid 97.2 percent of total income tax. modied taxable income, tax credits, self-employment tax, and tax payments. For a detailed description of the changes in law that may affect the data in this article, see the complete report, Statistics of Income2012 Individual Income Tax Returns, Publication 1304, Section 1. For a detailed description of the data sources and limitations, see Section 2. This report is available for viewing or download on the IRS Tax Stats Webpages at: http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Income-TaxReturns-Publication-1304-(Complete-Report). Changes in Law and Data Sources and Limitations SOI publishes a complete report annually that contains complete individual income tax data by tax year, including sections on \"Changes in Law\" and \"Data Sources and Limitations.\" The statistics are based on a sample of individual income tax returns, selected before audit, which represents a population of Forms 1040, 1040A, and 1040EZ, including electronic returns. The report contains data on sources of income, adjusted gross income, exemptions, deductions, taxable income, income tax, Statistics of Income Bulletin Adrian Dungan is an economist with the Individual Returns Analysis Section. Michael Weber, Chief Individual Returns Analysis Section, and Michael Strudler, Chief Individual Research Section, provided technical assistance and review. 4 Spring 2015 Individual Income Tax Shares, 2012 Table 1. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, AGI Threshold on Percentiles in Current and Constant Dollars, and Average Tax Rates, by Selected Expanded Descending Cumulative Percentiles of Returns Based on AGI Using the Definition of AGI for Each Year, Tax Years 2003-2012 [All figures are estimates based on samples] Descending cumulative percentiles Item, tax year Total Top 0.001 percent Top 0.01 percent Top 0.1 percent Top 1 percent Top 2 percent Top 3 percent (1) (2) (3) (4) (5) (6) (7) Number of returns: 2003 120,758,947 1,208 12,076 120,759 1,207,589 2,415,179 3,622,768 2004 122,509,974 1,225 12,251 122,510 1,225,100 2,450,199 3,675,299 2005 124,673,055 1,247 12,467 124,673 1,246,731 2,493,461 3,740,192 2006 128,441,165 1,284 12,844 128,441 1,284,412 2,568,823 3,853,235 2007 [1] 132,654,911 1,327 13,265 132,654 1,326,549 2,653,098 3,979,647 2008 132,891,770 1,329 13,289 132,892 1,328,918 2,657,835 3,986,753 2009 132,619,936 1,326 13,262 132,620 1,326,199 2,652,399 3,978,598 2010 135,033,492 1,350 13,503 135,033 1,350,335 2,700,670 4,051,005 2011 136,585,712 1,366 13,659 136,586 1,365,857 2,731,714 4,097,571 2012 136,080,353 1,361 13,608 136,080 1,360,804 2,721,607 4,082,411 2003 N/A 28,489,160 6,386,149 1,317,088 305,939 205,565 168,248 2004 N/A 38,780,500 8,455,107 1,617,918 339,993 224,320 181,127 2005 N/A 50,796,495 10,738,867 1,938,175 379,261 245,392 194,726 2006 N/A 54,665,360 11,649,460 2,124,625 402,603 258,800 205,835 2007 N/A 62,955,875 12,747,384 2,251,017 426,439 270,440 214,832 2008 N/A 49,546,782 10,097,827 1,867,652 392,513 260,381 209,750 2009 N/A 34,381,494 7,206,540 1,469,393 351,968 243,096 198,731 2010 N/A 45,039,369 8,762,618 1,634,386 369,691 252,785 205,942 2011 N/A 41,965,258 8,830,028 1,717,675 388,905 262,933 213,441 2012 N/A 62,068,187 12,104,014 2,161,175 434,682 285,908 227,923 2003 N/A 20,233,778 4,535,617 935,432 217,286 145,998 119,494 2004 N/A 26,837,716 5,851,285 1,119,666 235,289 155,239 125,347 2005 N/A 34,000,331 7,187,997 1,297,306 253,856 164,252 130,339 2006 2007 N/A N/A 35,450,947 39,694,751 7,554,773 8,037,443 1,377,837 1,419,305 261,091 268,877 167,834 170,517 133,486 135,455 2008 N/A 30,083,049 6,131,043 1,133,972 238,320 158,094 127,353 2009 N/A 20,951,550 4,391,554 895,425 214,484 148,139 121,104 2010 N/A 27,002,020 5,253,368 979,848 221,637 151,550 123,466 2011 N/A 24,384,229 5,130,754 998,068 225,976 152,779 124,021 2012 N/A 35,346,348 6,892,946 1,230,737 247,541 162,818 129,797 Adjusted gross income threshold on percentiles (current dollars): Adjusted gross income threshold on percentiles (constant dollars): [2] Adjusted gross income (millions of dollars): 2003 6,156,994 83,238 206,010 465,594 1,030,178 1,327,075 1,549,825 2004 6,734,554 111,932 280,449 615,494 1,278,879 1,610,803 1,855,778 2005 7,365,689 143,370 362,581 783,762 1,560,659 1,932,055 2,202,354 2006 7,969,813 170,567 418,573 895,044 1,761,119 2,166,188 2,460,559 2007 8,621,963 219,494 503,678 1,030,091 1,971,021 2,411,916 2,729,468 2008 8,206,158 173,257 397,957 825,898 1,656,771 2,072,196 2,380,698 2009 7,578,641 126,242 281,687 601,504 1,304,627 1,684,139 1,973,637 2010 8,039,779 166,727 366,563 742,989 1,517,146 1,922,058 2,228,360 2011 8,317,188 144,984 342,338 737,251 1,555,701 1,984,960 2,306,674 2012 9,041,744 219,067 501,374 1,017,057 1,976,738 2,446,464 2,791,205 Footnotes at end of table. Statistics of Income Bulletin 5 Spring 2015 Individual Income Tax Shares, 2012 Table 1. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, AGI Threshold on Percentiles in Current and Constant Dollars, and Average Tax Rates, by Selected Expanded Descending Cumulative Percentiles of Returns Based on AGI Using the Definition of AGI for Each Year, Tax Years 2003-2012Continued [All figures are estimates based on samples] Descending cumulative percentiles Item, tax year Total Top 0.001 percent Top 0.01 percent Top 0.1 percent Top 1 percent Top 2 percent Top 3 percent (1) (2) (3) (4) (5) (6) (7) Total income tax (millions of dollars): [3] 2003 745,514 17,169 47,192 114,559 251,146 308,878 345,930 2004 829,096 21,437 59,739 141,937 300,802 367,392 409,259 2005 931,693 27,171 75,151 176,152 361,264 437,452 485,042 2006 1,020,438 30,860 83,499 196,358 401,610 485,109 536,823 2007 1,111,872 38,587 97,979 220,636 442,633 534,150 590,292 2008 1,028,669 33,136 83,085 187,200 385,857 470,285 523,500 2009 863,486 26,328 64,253 146,030 313,826 387,828 435,662 2010 949,144 31,453 76,390 169,734 354,810 436,043 488,303 2011 1,042,571 26,488 70,545 168,222 365,518 453,679 510,000 2012 1,184,978 38,563 97,902 220,414 451,328 550,934 613,192 Average tax rate (percentage): [4] 2003 12.11 20.63 22.91 24.60 24.38 23.28 22.32 2004 12.31 19.15 21.30 23.06 23.52 22.81 22.05 2005 12.65 18.95 20.73 22.48 23.15 22.64 22.02 2006 12.80 18.09 19.95 21.94 22.80 22.39 21.82 2007 12.90 17.58 19.45 21.42 22.46 22.15 21.63 2008 12.54 19.13 20.88 22.67 23.29 22.70 21.99 2009 11.39 20.86 22.81 24.28 24.05 23.03 22.07 2010 11.81 18.87 20.84 22.84 23.39 22.69 21.91 2011 12.54 18.27 20.61 22.82 23.50 22.86 22.11 2012 13.11 17.60 19.53 21.67 22.83 22.52 21.97 2003 100.00 1.35 3.35 7.56 16.73 21.55 25.17 2004 100.00 1.66 4.16 9.14 18.99 23.92 27.56 2005 100.00 1.95 4.92 10.64 21.19 26.23 29.90 2006 100.00 2.14 5.25 11.23 22.10 27.18 30.87 2007 100.00 2.55 5.84 11.95 22.86 27.97 31.66 2008 100.00 2.11 4.85 10.06 20.19 25.25 29.01 2009 100.00 1.67 3.72 7.94 17.21 22.22 26.04 2010 100.00 2.07 4.56 9.24 18.87 23.91 27.72 2011 100.00 1.74 4.12 8.86 18.70 23.87 27.73 2012 100.00 2.42 5.55 11.25 21.86 27.06 30.87 2003 100.00 2.30 6.33 15.37 33.69 41.43 46.40 2004 100.00 2.59 7.21 17.12 36.28 44.31 49.36 2005 100.00 2.92 8.07 18.91 38.78 46.95 52.06 2006 100.00 3.02 8.18 19.24 39.36 47.54 52.61 2007 100.00 3.47 8.81 19.84 39.81 48.04 53.09 2008 100.00 3.22 8.08 18.20 37.51 45.72 50.89 2009 100.00 3.05 7.44 16.91 36.34 44.91 50.45 2010 100.00 3.31 8.05 17.88 37.38 45.94 51.45 2011 100.00 2.54 6.77 16.14 35.06 43.52 48.92 2012 100.00 3.25 8.26 18.60 38.09 46.49 51.75 Adjusted gross income share (percentage): Total income tax share (percentage): Footnotes at end of table. Statistics of Income Bulletin 6 Spring 2015 Individual Income Tax Shares, 2012 Table 1. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, AGI Threshold on Percentiles in Current and Constant Dollars, and Average Tax Rates, by Selected Expanded Descending Cumulative Percentiles of Returns Based on AGI Using the Definition of AGI for Each Year, Tax Years 2003-2012Continued [All figures are estimates based on samples] Descending cumulative percentiles Item, tax year Top 4 percent Top 5 percent Top 10 percent Top 20 percent Top 25 percent Top 30 percent Top 40 percent Top 50 percent (8) (9) (10) (11) (12) (13) (14) (15) 2003 4,830,358 6,037,947 12,075,895 24,151,789 30,189,737 36,227,684 48,303,579 60,379,474 2004 4,900,399 6,125,499 12,250,997 24,501,995 30,627,494 36,752,992 49,003,990 61,254,987 2005 4,986,922 6,233,653 12,467,306 24,934,611 31,168,264 37,401,917 49,869,222 62,336,528 2006 5,137,647 6,422,058 12,844,117 25,688,233 32,110,291 38,532,350 51,376,466 64,220,583 2007 5,306,196 6,632,746 13,265,491 26,530,982 33,163,728 39,796,473 53,061,964 66,327,456 2008 5,315,671 6,644,589 13,289,177 26,578,354 33,222,943 39,867,531 53,156,708 66,445,885 2009 5,304,797 6,630,997 13,261,994 26,523,987 33,154,984 39,785,981 53,047,974 66,309,968 2010 5,401,340 6,751,675 13,503,349 27,006,698 33,758,373 40,510,048 54,013,397 67,516,746 2011 5,463,428 6,829,286 13,658,571 27,317,142 34,146,428 40,975,714 54,634,285 68,292,856 2012 5,443,214 6,804,018 13,608,035 27,216,071 34,020,088 40,824,106 54,432,141 68,040,177 2003 147,132 133,741 97,470 69,304 59,896 52,353 40,383 31,447 2004 156,665 140,758 101,838 72,069 62,794 54,765 42,081 32,622 2005 167,281 149,216 106,864 74,790 64,821 56,583 43,361 33,484 2006 176,455 157,390 112,016 77,776 67,291 58,505 44,748 34,417 2007 184,473 164,883 116,396 80,723 69,559 60,617 46,200 35,541 2008 181,624 163,512 116,813 80,886 69,813 60,535 46,120 35,340 2009 174,432 157,342 114,181 79,237 68,216 58,876 44,529 34,156 2010 179,023 161,579 116,623 80,462 69,126 59,512 44,895 34,338 2011 185,812 167,728 120,136 82,241 70,492 60,789 45,722 34,823 2012 196,416 175,817 125,195 85,440 73,354 63,222 47,475 36,055 2003 104,497 94,987 69,226 49,222 42,540 37,183 28,681 22,335 2004 108,419 97,410 70,476 49,875 43,456 37,900 29,122 22,576 2005 111,969 99,877 71,529 50,060 43,388 37,873 29,023 22,412 2006 2007 114,433 116,313 102,069 103,962 72,643 73,390 50,438 50,897 43,639 43,858 37,941 38,220 29,019 29,130 22,320 22,409 2008 110,276 99,279 70,925 49,111 42,388 36,755 28,002 21,457 2009 106,296 95,882 69,580 48,286 41,570 35,878 27,135 20,814 2010 107,328 96,870 69,918 48,239 41,442 35,679 26,915 20,586 2011 107,967 97,460 69,806 47,787 40,960 35,322 26,567 20,234 2012 111,854 100,124 71,296 48,656 41,773 36,003 27,036 20,532 2003 1,738,945 1,907,837 2,586,777 3,572,674 3,961,657 4,300,174 4,855,774 5,286,949 2004 2,061,398 2,243,098 2,968,169 4,010,897 4,423,150 4,782,507 5,371,578 5,826,206 2005 2,426,492 2,623,077 3,400,596 4,506,197 4,940,249 5,317,903 5,936,944 6,412,897 2006 2,704,549 2,918,422 3,759,733 4,947,104 5,412,038 5,815,385 6,474,937 6,980,130 2007 2,992,467 3,223,396 4,128,240 5,401,825 5,898,437 6,329,354 7,032,507 7,571,084 2008 2,639,100 2,867,730 3,772,889 5,055,298 5,554,583 5,986,923 6,690,342 7,228,036 2009 2,219,853 2,439,146 3,317,402 4,570,256 5,057,761 5,478,063 6,159,780 6,678,194 2010 2,486,918 2,716,199 3,631,364 4,927,262 5,430,952 5,864,278 6,564,169 7,095,680 2011 2,578,137 2,818,879 3,774,978 5,120,188 5,640,585 6,088,552 6,810,489 7,356,627 2012 3,078,337 3,330,944 4,327,899 5,722,980 6,261,677 6,725,553 7,473,507 8,037,800 Number of returns: Adjusted gross income threshold on percentiles (current dollars): Adjusted gross income threshold on percentiles (constant dollars): [2] Adjusted gross income (millions of dollars): Footnotes at end of table. Statistics of Income Bulletin 7 Spring 2015 Individual Income Tax Shares, 2012 Table 1. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, AGI Threshold on Percentiles in Current and Constant Dollars, and Average Tax Rates, by Selected Expanded Descending Cumulative Percentiles of Returns Based on AGI Using the Definition of AGI for Each Year, Tax Years 2003-2012Continued [All figures are estimates based on samples] Descending cumulative percentiles Item, tax year Top 4 percent Top 5 percent Top 10 percent Top 20 percent Top 25 percent Top 30 percent Top 40 percent Top 50 percent (8) (9) (10) (11) (12) (13) (14) (15) Total income tax (millions of dollars): [3] 2003 374,786 399,176 483,792 582,130 617,015 645,885 688,113 715,163 2004 440,979 467,165 558,007 659,803 694,983 724,830 769,074 797,040 2005 520,483 549,068 647,115 755,252 792,545 823,488 869,272 898,262 2006 575,603 607,088 715,108 832,153 872,385 905,569 954,823 985,657 2007 631,830 666,021 782,903 909,392 952,964 988,633 1,041,166 1,074,502 2008 563,684 597,246 711,873 837,561 880,244 915,035 965,691 996,815 2009 472,299 502,274 603,504 712,700 749,022 777,801 818,789 842,286 2010 528,045 560,649 670,319 787,407 826,796 858,000 901,560 926,782 2011 553,220 588,967 711,663 846,579 892,616 929,529 981,800 1,012,460 2012 660,121 698,543 831,445 975,377 1,024,046 1,063,388 1,119,368 1,152,063 Average tax rate (percentage): [4] 2003 21.55 20.92 18.70 16.29 15.57 15.02 14.17 13.53 2004 21.39 20.83 18.80 16.45 15.71 15.16 14.32 13.68 2005 21.45 20.93 19.03 16.76 16.04 15.49 14.64 14.01 2006 21.28 20.80 19.02 16.82 16.12 15.57 14.75 14.12 2007 21.11 20.66 18.96 16.83 16.16 15.62 14.81 14.19 2008 21.36 20.83 18.87 16.57 15.85 15.28 14.43 13.79 2009 21.28 20.59 18.19 15.59 14.81 14.20 13.29 12.61 2010 21.23 20.64 18.46 15.98 15.22 14.63 13.73 13.06 2011 21.46 20.89 18.85 16.53 15.82 15.27 14.42 13.76 2012 21.44 20.97 19.21 17.04 16.35 15.81 14.98 14.33 2003 28.24 30.99 42.01 58.03 64.34 69.84 78.87 85.87 2004 30.61 33.31 44.07 59.56 65.68 71.01 79.76 86.51 2005 32.94 35.61 46.17 61.18 67.07 72.20 80.60 87.06 2006 33.93 36.62 47.17 62.07 67.91 72.97 81.24 87.58 2007 34.71 37.39 47.88 62.65 68.41 73.41 81.57 87.81 2008 32.16 34.95 45.98 61.60 67.69 72.96 81.53 88.08 2009 29.29 32.18 43.77 60.30 66.74 72.28 81.28 88.12 2010 30.93 33.78 45.17 61.29 67.55 72.94 81.65 88.26 2011 31.00 33.89 45.39 61.56 67.82 73.20 81.88 88.45 2012 34.05 36.84 47.87 63.30 69.25 74.38 82.66 88.90 2003 50.27 53.54 64.89 78.08 82.76 86.64 92.30 95.93 2004 53.19 56.35 67.30 79.58 83.82 87.42 92.76 96.13 2005 55.86 58.93 69.46 81.06 85.07 88.39 93.30 96.41 2006 56.41 59.49 70.08 81.55 85.49 88.74 93.57 96.59 2007 56.83 59.90 70.41 81.79 85.71 88.92 93.64 96.64 2008 54.80 58.06 69.20 81.42 85.57 88.95 93.88 96.90 2009 54.70 58.17 69.89 82.54 86.74 90.08 94.82 97.54 2010 55.63 59.07 70.62 82.96 87.11 90.40 94.99 97.64 2011 53.06 56.49 68.26 81.20 85.62 89.16 94.17 97.11 2012 55.71 58.95 70.17 82.31 86.42 89.74 94.46 97.22 Adjusted gross income share (percentage): Total income tax share (percentage): [1] The total number of returns does not include the returns filed by individuals to only receive the economic stimulus payment and who had no other reason to file. [2] For Table 1, constant dollars were calculated using the U.S. Bureau of Labor Statistics' consumer price index for urban consumers (CPI-U, 1990=100). For 2012 the CPI-U = 229.594. [3] Total income tax was the sum of income tax after credits (including the subtraction of the earned income credit, American opportunity credit, regulated investment credit, health insurance credit, and the refundable prior-year minimum tax credit) limited to zero plus the tax from Form 4970, Tax on Accumulation Distribution of Trusts. [4] The average tax rate was computed by dividing total income tax (see footnote 3) by adjusted gross income. Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. Statistics of Income Bulletin 8 Spring 2015 Individual Income Tax Shares, 2012 Table 2. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, and Average Tax Rates, by Selected Ascending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year, Tax Years 2003-2012 [All figures are estimates based on samples] Ascending cumulative percentiles Item, tax year Total Bottom 50 percent Bottom 75 percent Bottom 90 percent Bottom 95 percent Bottom 99 percent (1) (2) (3) (4) (5) (6) Number of returns: 2003 120,758,947 60,379,474 90,569,210 108,683,052 114,721,000 119,551,358 2004 122,509,974 61,254,987 91,882,481 110,258,977 116,384,475 121,284,874 2005 124,673,055 62,336,528 93,504,791 112,205,750 118,439,402 123,426,324 2006 128,441,165 64,220,583 96,330,874 115,597,049 122,019,107 127,156,753 2007 [1] 132,654,911 66,327,456 99,491,183 119,389,420 126,022,165 131,328,362 2008 132,891,770 66,445,885 99,668,828 119,602,593 126,247,182 131,562,852 2009 132,619,936 66,309,968 99,464,952 119,357,942 125,988,939 131,293,737 2010 135,033,492 67,516,746 101,275,119 121,530,143 128,281,817 133,683,157 2011 136,585,712 68,292,856 102,439,284 122,927,141 129,756,426 135,219,855 2012 136,080,353 68,040,177 102,060,265 122,472,318 129,276,335 134,719,549 2003 6,156,994 870,045 2,195,336 3,570,217 4,249,157 5,126,816 2004 6,734,554 908,348 2,311,404 3,766,385 4,491,456 5,455,674 2005 7,365,689 952,792 2,425,440 3,965,094 4,742,612 5,805,030 2006 7,969,813 989,682 2,557,775 4,210,079 5,051,390 6,208,693 2007 8,621,963 1,050,879 2,723,525 4,493,722 5,398,566 6,650,942 2008 8,206,158 978,122 2,651,575 4,433,269 5,338,428 6,549,387 2009 7,578,641 900,447 2,520,880 4,261,239 5,139,495 6,274,014 2010 8,039,779 944,099 2,608,826 4,408,415 5,323,580 6,522,633 2011 8,317,188 960,561 2,676,602 4,542,210 5,498,309 6,761,487 2012 9,041,744 1,003,944 2,780,067 4,713,845 5,710,800 7,065,006 2003 745,514 30,351 128,499 261,722 346,338 494,368 2004 829,096 32,054 134,114 271,089 361,932 528,294 2005 931,693 33,431 139,143 284,578 382,625 570,430 2006 1,020,438 34,781 148,053 305,330 413,350 618,828 2007 1,111,872 37,371 158,909 328,969 445,851 669,239 2008 1,028,669 31,857 148,425 316,797 431,423 642,812 2009 863,486 21,200 114,465 259,982 361,213 549,660 2010 949,144 22,363 122,347 278,824 388,495 594,333 2011 1,042,571 30,109 149,953 330,907 453,605 677,052 2012 1,184,978 32,915 160,932 353,533 486,435 733,650 2003 12.11 3.49 5.85 7.33 8.15 9.64 2004 12.31 3.53 5.80 7.20 8.06 9.68 2005 12.65 3.51 5.74 7.18 8.07 9.83 2006 12.80 3.51 5.79 7.25 8.18 9.97 2007 12.90 3.56 5.83 7.32 8.26 10.06 2008 12.54 3.26 5.60 7.15 8.08 9.81 2009 11.39 2.35 4.54 6.10 7.03 8.76 2010 11.81 2.37 4.69 6.32 7.30 9.11 2011 12.54 3.13 5.60 7.29 8.25 10.01 2012 13.11 3.28 5.79 7.50 8.52 10.38 Adjusted gross income (millions of dollars): Total income tax (millions of dollars): [2] Average tax rate (percentage): [3] Footnotes at end of table. Statistics of Income Bulletin 9 Spring 2015 Individual Income Tax Shares, 2012 Table 2. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, and Average Tax Rates, by Selected Ascending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year, Tax Years 2003-2012Continued [All figures are estimates based on samples] Ascending cumulative percentiles Item, tax year Total Bottom 50 percent Bottom 75 percent Bottom 90 percent Bottom 95 percent Bottom 99 percent (1) (2) (3) (4) (5) (6) Adjusted gross income share (percentage): 2003 100.00 14.13 35.66 57.99 69.01 83.27 2004 100.00 13.49 34.32 55.93 66.69 81.01 2005 100.00 12.94 32.93 53.83 64.39 78.81 2006 100.00 12.42 32.09 52.83 63.38 77.90 2007 100.00 12.19 31.59 52.12 62.61 77.14 2008 100.00 11.92 32.31 54.02 65.05 79.81 2009 2010 100.00 100.00 11.88 11.74 33.26 32.45 56.23 54.83 67.82 66.22 82.79 81.13 2011 100.00 11.55 32.18 54.61 66.11 81.30 2012 100.00 11.10 30.75 52.13 63.16 78.14 2003 100.00 4.07 17.24 35.11 46.46 66.31 2004 100.00 3.87 16.18 32.70 43.65 63.72 2005 100.00 3.59 14.93 30.54 41.07 61.23 2006 100.00 3.41 14.51 29.92 40.51 60.64 2007 100.00 3.36 14.29 29.59 40.10 60.19 2008 100.00 3.10 14.43 30.80 41.94 62.49 2009 100.00 2.46 13.26 30.11 41.83 63.66 2010 100.00 2.36 12.89 29.38 40.93 62.62 2011 100.00 2.89 14.38 31.74 43.51 64.94 2012 100.00 2.78 13.58 29.83 41.05 61.91 Total income tax share (percentage): [1] The total number of returns does not include the returns filed by individuals to only receive the economic stimulus payment and who had no other reason to file. [2] Total income tax was the sum of income tax after credits (including the subtraction of the earned income credit, American opportunity credit, regulated investment credit, health insurance credit, and the refundable prior-year minimum tax credit) limited to zero plus the tax from Form 4970, Tax on Accumulation Distribution of Trusts. [3] The average tax rate was computed by dividing total income tax (see footnote 2) by adjusted gross income. Source: IRS, Statistics of Income Division, Individual Income Tax Shares, January 2015. Statistics of Income Bulletin 10 Spring 2015