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Presentation to the National Tax Association 2012 Spring Symposium
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Congressional Budget Office
Trends in The Distribution of Household Income, 1979-2007
Ed Harris, Principal AnalystFrank Sammartino, Assistant Director For Tax Analysis
This presentation provides information published in Congressional Budget Office, Trends in the Distribution of Household Income Between 1979 and 2007 (October 2011), www.cbo.gov/publication/42729.
May 17,2012
Presentation to the National Tax Association 2012 Spring Symposium
2C O N G R E S S I O N A L B U D G E T O F F I C E
Cumulative Growth in Average After-Tax Income, by Income Group
Percentage change in income since 1979, adjusted for inflation
3C O N G R E S S I O N A L B U D G E T O F F I C E
Summary Measures of Income Inequality, With and Without Transfers and Federal Taxes
Gini Index
4C O N G R E S S I O N A L B U D G E T O F F I C E
1980
1985
1990
1995
2000
2005
0
10
20
30
40
50
60
Share of Total Transfers, by Market Income Group
Percent
Lowest Quintile
Second Quintile
Middle Quintile
Fourth QuintileHighest Quintile
5C O N G R E S S I O N A L B U D G E T O F F I C E
Federal Taxes as a Percentage of Household Income, by Income Group
Percent
1980
1985
1990
1995
2000
2005
0
5
10
15
20
25
30
35
40
Top 1 Percent
81st to 99th Percentiles
21st to 80th Percentiles
Lowest Quintile
6C O N G R E S S I O N A L B U D G E T O F F I C E
Indexes of the Progressivity of Federal Individual Income Taxes
1979 1984 1989 1994 1999 2004
0.666666666666667
0.777777777777778
0.888888888888889
1
0000000000000000000000000
0.333333333333333
0.5
0.666666666666667
000000000000000000000000000
0
0
00000000000000000000000000
Difference Between Pretax Gini and Gini after Individual Income Taxes
Average Tax Rate
Difference Between Tax Concentration Index and Pretax Gini
7C O N G R E S S I O N A L B U D G E T O F F I C E
Indexes of the Progressivity of All Federal Taxes
1979 1984 1989 1994 1999 2004
0.666666666666667
0.761904761904762
0.857142857142857
0.952380952380952
0000000000000000000000000
0.333333333333333
0.466666666666667
0.6
000000000000000000000000000
0
0
00000000000000000000000000
Average Tax Rate
Difference Between Tax Concentration Index and Pretax Gini
Difference Between Pre-and Post-Tax Gini
