|
The Fair Government Organization
"Statistics are like bikinis. What they reveal is suggestive, but what they conceal is vital."
Aaron Levenstein
(The Research Institute of America, a provider of research material for tax professionals)
The IRS routinely provides statistical
data in an ambiguous format meant to seem detailed and revealing yet
designed to conceal alarming trends. The IRS refers to this format as
"Selected by Descending Cumulative Percentiles".
The "Descending Cumulative Percentiles"
format duplicates numbers from strong segments and irrelevantly folds
them into weak segments to make them seem stronger than they actually
are.
The following is a side-by-side
comparison of IRS data (Source: IRS, Statistics of Income Division, Unpublished Statistics, September
2002) presented the way they want
you to see (on the left) it and the same data reformatted using "Ascending
Non-Cumulative Percentiles" (on the right) to clearly present relevant data.
| |
|
|
|
 |
"Descending
Cumulative Percentiles"
What the IRS wants you to believe. |
|
"Ascending Non-Cumulative
Percentiles"
What the government doesn't wants you to see. |
|
Number of returns filed
(Millions): |
|
Number of
returns filed (Millions): |
| |
|
Year |
Top 1% |
Top 5% |
Top 10% |
Top 25% |
Top 50% |
ALL |
|
1986: |
1.1 |
5.2 |
10.3 |
25.6 |
51.1 |
102.1 |
|
1987: |
1.1 |
5.4 |
10.7 |
26.6 |
53.1 |
106.2 |
|
1988: |
1.1 |
5.5 |
10.9 |
27.3 |
54.5 |
108.9 |
|
1989: |
1.2 |
5.6 |
11.2 |
27.9 |
55.7 |
111.3 |
|
1990: |
1.2 |
5.7 |
11.3 |
28.3 |
56.5 |
112.8 |
|
1991: |
1.2 |
5.7 |
11.4 |
28.5 |
57 |
113.8 |
|
1992: |
1.2 |
5.7 |
11.3 |
28.2 |
56.4 |
112.7 |
|
1993: |
1.2 |
5.7 |
11.4 |
28.5 |
56.9 |
113.7 |
|
1994: |
1.2 |
5.8 |
11.5 |
28.8 |
57.5 |
115 |
|
1995: |
1.2 |
5.9 |
11.8 |
29.4 |
58.7 |
117.3 |
|
1996: |
1.2 |
6 |
12 |
29.9 |
59.8 |
119.4 |
|
1997: |
1.3 |
6.1 |
12.2 |
30.4 |
60.8 |
121.5 |
|
1998: |
1.3 |
6.2 |
12.4 |
31 |
61.9 |
123.8 |
|
1999: |
1.3 |
6.4 |
12.7 |
31.6 |
63.1 |
126 |
|
2000: |
1.3 |
6.5 |
12.9 |
32.1 |
64.2 |
128.2 |
|
|
|
Year |
Top 1% |
Top 1-5% |
Top 5-10% |
Top 10-25% |
Top 25-50% |
Bottom 50% |
|
1986: |
1.1 |
4.1 |
5.2 |
15.4 |
25.6 |
51 |
|
1987: |
1.1 |
4.3 |
5.4 |
16 |
26.6 |
53.1 |
|
1988: |
1.1 |
4.4 |
5.5 |
16.4 |
27.3 |
54.4 |
|
1989: |
1.2 |
4.5 |
5.6 |
16.7 |
27.9 |
55.7 |
|
1990: |
1.2 |
4.6 |
5.7 |
17 |
28.3 |
56.4 |
|
1991: |
1.2 |
4.6 |
5.7 |
17.1 |
28.5 |
56.9 |
|
1992: |
1.2 |
4.6 |
5.7 |
16.9 |
28.2 |
56.3 |
|
1993: |
1.2 |
4.6 |
5.7 |
17.1 |
28.5 |
56.8 |
|
1994: |
1.2 |
4.6 |
5.8 |
17.3 |
28.8 |
57.5 |
|
1995: |
1.2 |
4.7 |
5.9 |
17.6 |
29.4 |
58.6 |
|
1996: |
1.2 |
4.8 |
6 |
18 |
29.9 |
59.7 |
|
1997: |
1.3 |
4.9 |
6.1 |
18.3 |
30.4 |
60.8 |
|
1998: |
1.3 |
5 |
6.2 |
18.6 |
31 |
61.9 |
|
1999: |
1.3 |
5.1 |
6.4 |
19 |
31.6 |
63 |
|
2000: |
1.3 |
5.2 |
6.5 |
19.3 |
32.1 |
64.1 |
|
| |
There is no significance to the way the "number
of returns filed" is presented by the IRS except that you could
tell off the bat that the "Bottom-50%" are no where to be found.
By not providing the numbers for the bottom percentiles they are
making it difficult to unveil data that applies to those groups. |
|
Income FLOOR of group: |
|
Income RANGE
of group: |
| |
|
Year |
Top 1% |
Top 5% |
Top 10% |
Top 25% |
Top 50% |
|
1986: |
$118,818 |
$62,377 |
$48,656 |
$32,242 |
$17,302 |
|
1987: |
$139,289 |
$68,414 |
$52,921 |
$33,983 |
$17,768 |
|
1988: |
$157,136 |
$72,735 |
$55,437 |
$35,398 |
$18,367 |
|
1989: |
$163,869 |
$76,933 |
$58,263 |
$36,839 |
$18,993 |
|
1990: |
$167,421 |
$79,064 |
$60,287 |
$38,080 |
$19,767 |
|
1991: |
$170,139 |
$81,720 |
$61,944 |
$38,929 |
$20,097 |
|
1992: |
$181,904 |
$85,103 |
$64,457 |
$40,378 |
$20,803 |
|
1993: |
$185,715 |
$87,386 |
$66,077 |
$41,210 |
$21,179 |
|
1994: |
$195,726 |
$91,226 |
$68,753 |
$42,742 |
$21,802 |
|
1995: |
$209,406 |
$96,221 |
$72,094 |
$44,207 |
$22,344 |
|
1996: |
$227,546 |
$101,141 |
$74,986 |
$45,757 |
$23,174 |
|
1997: |
$250,736 |
$108,048 |
$79,212 |
$48,173 |
$24,393 |
|
1998: |
$269,496 |
$114,729 |
$83,220 |
$50,607 |
$25,491 |
|
1999: |
$293,415 |
$120,846 |
$87,682 |
$52,965 |
$26,415 |
|
2000: |
$313,469 |
$128,336 |
$92,144 |
$55,225 |
$27,682 |
|
|
|
Year |
Top 1% |
Top 1-5% |
Top 5-10% |
Top 10-25% |
Top 25-50% |
Bottom 50% |
|
1986: |
$119K+ |
$62K-$119K |
$49K-$62K |
$32K-$49K |
$17K-$32K |
Under $17K |
|
1987: |
$139K+ |
$68K-$139K |
$53K-$68K |
$34K-$53K |
$18K-$34K |
Under $18K |
|
1988: |
$157K+ |
$73K-$157K |
$55K-$73K |
$35K-$55K |
$18K-$35K |
Under $18K |
|
1989: |
$164K+ |
$77K-$164K |
$58K-$77K |
$37K-$58K |
$19K-$37K |
Under $19K |
|
1990: |
$167K+ |
$79K-$167K |
$60K-$79K |
$38K-$60K |
$20K-$38K |
Under $20K |
|
1991: |
$170K+ |
$82K-$170K |
$62K-$82K |
$39K-$62K |
$20K-$39K |
Under $20K |
|
1992: |
$182K+ |
$85K-$182K |
$64K-$85K |
$40K-$64K |
$21K-$40K |
Under $21K |
|
1993: |
$186K+ |
$87K-$186K |
$66K-$87K |
$41K-$66K |
$21K-$41K |
Under $21K |
|
1994: |
$196K+ |
$91K-$196K |
$69K-$91K |
$43K-$69K |
$22K-$43K |
Under $22K |
|
1995: |
$209K+ |
$96K-$209K |
$72K-$96K |
$44K-$72K |
$22K-$44K |
Under $22K |
|
1996: |
$228K+ |
$101K-$228K |
$75K-$101K |
$46K-$75K |
$23K-$46K |
Under $23K |
|
1997: |
$251K+ |
$108K-$251K |
$79K-$108K |
$48K-$79K |
$24K-$48K |
Under $24K |
|
1998: |
$269K+ |
$115K-$269K |
$83K-$115K |
$51K-$83K |
$25K-$51K |
Under $25K |
|
1999: |
$293K+ |
$121K-$293K |
$88K-$121K |
$53K-$88K |
$26K-$53K |
Under $26K |
|
2000: |
$313K+ |
$128K-$313K |
$92K-$128K |
$55K-$92K |
$28K-$55K |
Under $28K |
|
| |
The Floor / Range tables are presented for
reference only. |
|
Total INCOME of group (TAGI,
US$ Billions): |
|
Total INCOME
of group (TAGI, US$ Billions): |
| |
|
Year |
Top 1% |
Top 5% |
Top 10% |
Top 25% |
Top 50% |
ALL |
|
1986: |
285 |
608 |
887 |
1,490 |
2,104 |
2,524 |
|
1987: |
347 |
722 |
1,038 |
1,709 |
2,374 |
2,814 |
|
1988: |
474 |
891 |
1,233 |
1,951 |
2,658 |
3,124 |
|
1989: |
468 |
918 |
1,287 |
2,054 |
2,805 |
3,299 |
|
1990: |
483 |
953 |
1,338 |
2,144 |
2,933 |
3,451 |
|
1991: |
457 |
943 |
1,343 |
2,175 |
2,984 |
3,516 |
|
1992: |
524 |
1,031 |
1,444 |
2,299 |
3,131 |
3,681 |
|
1993: |
521 |
1,048 |
1,474 |
2,358 |
3,212 |
3,776 |
|
1994: |
547 |
1,103 |
1,552 |
2,481 |
3,371 |
3,961 |
|
1995: |
620 |
1,223 |
1,705 |
2,690 |
3,628 |
4,245 |
|
1996: |
737 |
1,394 |
1,909 |
2,953 |
3,944 |
4,591 |
|
1997: |
873 |
1,597 |
2,151 |
3,268 |
4,328 |
5,023 |
|
1998: |
1,010 |
1,797 |
2,394 |
3,590 |
4,721 |
5,469 |
|
1999: |
1,153 |
2,012 |
2,653 |
3,927 |
5,126 |
5,909 |
|
2000: |
1,337 |
2,267 |
2,955 |
4,314 |
5,590 |
6,424 |
|
|
|
Year |
Top 1% |
Top 1-5% |
Top 5-10% |
Top 10-25% |
Top 25-50% |
Bottom 50% |
|
1986: |
285 |
323 |
278 |
604 |
613 |
421 |
|
1987: |
347 |
376 |
316 |
671 |
664 |
440 |
|
1988: |
474 |
417 |
342 |
718 |
707 |
466 |
|
1989: |
468 |
450 |
368 |
768 |
751 |
494 |
|
1990: |
483 |
470 |
385 |
806 |
788 |
519 |
|
1991: |
457 |
487 |
400 |
832 |
809 |
532 |
|
1992: |
524 |
508 |
413 |
856 |
832 |
549 |
|
1993: |
521 |
528 |
426 |
883 |
854 |
563 |
|
1994: |
547 |
556 |
449 |
929 |
890 |
590 |
|
1995: |
620 |
603 |
482 |
985 |
938 |
617 |
|
1996: |
737 |
657 |
515 |
1,043 |
992 |
646 |
|
1997: |
873 |
724 |
554 |
1,116 |
1,060 |
695 |
|
1998: |
1,010 |
786 |
597 |
1,196 |
1,132 |
748 |
|
1999: |
1,153 |
859 |
641 |
1,274 |
1,199 |
783 |
|
2000: |
1,337 |
931 |
688 |
1,358 |
1,276 |
834 |
|
| |
This is where the concealment starts. The
government would have less criticism to deal with if no one
noticed the "Reversal of Fortunes" trend. Notice how in
1986 the Bottom-50% earned 136 Billion (50%) more than the
Top-1%. In 2000 the Top-1% earned 500 Billion (60%) more than
did the entire Bottom-50%. Keep in mind - we are talking about
1.1 million individuals that are now commanding an income much
greater than that of 64 million individuals. |
| |
|
|
|
|
Total income-tax per
group (US$ Billions): |
|
Total
income-tax per group (US$ Billions): |
| |
|
Year |
Top 1% |
Top 5% |
Top 10% |
Top 25% |
Top 50% |
ALL |
|
1986: |
94 |
156 |
201 |
279 |
343 |
367 |
|
1987: |
92 |
160 |
205 |
284 |
347 |
369 |
|
1988: |
114 |
188 |
236 |
321 |
389 |
413 |
|
1989: |
109 |
190 |
241 |
334 |
408 |
433 |
|
1990: |
112 |
195 |
248 |
344 |
421 |
447 |
|
1991: |
111 |
194 |
250 |
347 |
424 |
448 |
|
1992: |
131 |
218 |
276 |
374 |
452 |
476 |
|
1993: |
146 |
238 |
298 |
399 |
479 |
503 |
|
1994: |
154 |
254 |
318 |
425 |
509 |
535 |
|
1995: |
178 |
288 |
357 |
473 |
561 |
588 |
|
1996: |
213 |
335 |
411 |
535 |
630 |
658 |
|
1997: |
241 |
377 |
460 |
594 |
696 |
727 |
|
1998: |
274 |
425 |
513 |
652 |
755 |
788 |
|
1999: |
317 |
486 |
583 |
733 |
842 |
877 |
|
2000: |
367 |
554 |
660 |
824 |
942 |
981 |
|
|
|
Year |
Top 1% |
Top 1-5% |
Top 5-10% |
Top 10-25% |
Top 25-50% |
Bottom 50% |
|
1986: |
94 |
62 |
44 |
78 |
64 |
24 |
|
1987: |
92 |
68 |
46 |
79 |
63 |
22 |
|
1988: |
114 |
74 |
48 |
85 |
68 |
24 |
|
1989: |
109 |
81 |
51 |
93 |
73 |
25 |
|
1990: |
112 |
83 |
52 |
97 |
77 |
26 |
|
1991: |
111 |
83 |
56 |
96 |
77 |
25 |
|
1992: |
131 |
87 |
58 |
97 |
78 |
24 |
|
1993: |
146 |
92 |
60 |
101 |
80 |
24 |
|
1994: |
154 |
100 |
64 |
108 |
84 |
25 |
|
1995: |
178 |
110 |
70 |
115 |
88 |
27 |
|
1996: |
213 |
123 |
76 |
124 |
95 |
28 |
|
1997: |
241 |
136 |
82 |
134 |
102 |
31 |
|
1998: |
274 |
150 |
88 |
139 |
103 |
33 |
|
1999: |
317 |
169 |
97 |
150 |
109 |
35 |
|
2000: |
367 |
187 |
106 |
164 |
118 |
38 |
|
| |
Looking at the IRS numbers, one will conveniently be
likely to think that only the Top-50% pay taxes. The truth is
that from 1986 to 2000 the IRS collected 412 Billion dollars
from the Bottom-50%. Why would they rather we did not have these
figures readily available? Because of what the next table reveals. |
|
Average INCOME per filer
(TAGI/#Returns): |
|
Average INCOME per filer
(TAGI/#Returns): |
| |
|
Year |
Top 1% |
Top 5% |
Top 10% |
Top 25% |
Top 50% |
|
1986: |
$279,172 |
$119,113 |
$86,886 |
$58,381 |
$41,219 |
|
1987: |
$326,881 |
$136,028 |
$97,782 |
$64,397 |
$44,727 |
|
1988: |
$435,370 |
$163,677 |
$113,251 |
$71,680 |
$48,828 |
|
1989: |
$420,437 |
$164,941 |
$115,620 |
$73,810 |
$50,399 |
|
1990: |
$428,145 |
$168,953 |
$118,604 |
$76,020 |
$51,998 |
|
1991: |
$401,567 |
$165,723 |
$118,010 |
$76,447 |
$52,441 |
|
1992: |
$465,146 |
$183,040 |
$128,182 |
$81,631 |
$55,587 |
|
1993: |
$458,298 |
$184,375 |
$129,661 |
$82,969 |
$56,509 |
|
1994: |
$475,694 |
$191,843 |
$134,968 |
$86,303 |
$58,631 |
|
1995: |
$528,676 |
$208,571 |
$145,386 |
$91,751 |
$61,872 |
|
1996: |
$617,037 |
$233,419 |
$159,827 |
$98,893 |
$66,041 |
|
1997: |
$718,499 |
$262,874 |
$177,032 |
$107,586 |
$71,241 |
|
1998: |
$815,991 |
$290,364 |
$193,414 |
$116,016 |
$76,283 |
|
1999: |
$915,014 |
$319,342 |
$210,541 |
$124,658 |
$81,359 |
|
2000: |
$1,042,681 |
$353,591 |
$230,450 |
$134,574 |
$87,189 |
|
|
|
Year |
Top 1% |
Top 1-5% |
Top 5-10% |
Top 10-25% |
Top 25-50% |
Bottom 50% |
|
1986: |
$279,172 |
$79,099 |
$54,463 |
$39,443 |
$24,019 |
$8,248 |
|
1987: |
$326,881 |
$88,550 |
$59,536 |
$42,140 |
$25,020 |
$8,290 |
|
1988: |
$435,370 |
$95,754 |
$62,826 |
$43,966 |
$25,975 |
$8,560 |
|
1989: |
$420,437 |
$101,067 |
$66,120 |
$45,997 |
$26,987 |
$8,876 |
|
1990: |
$428,145 |
$104,155 |
$68,255 |
$47,631 |
$27,940 |
$9,201 |
|
1991: |
$401,567 |
$106,982 |
$70,296 |
$48,739 |
$28,435 |
$9,349 |
|
1992: |
$465,146 |
$112,736 |
$73,323 |
$50,657 |
$29,542 |
$9,747 |
|
1993: |
$458,298 |
$116,114 |
$74,946 |
$51,782 |
$30,049 |
$9,905 |
|
1994: |
$475,694 |
$120,880 |
$78,094 |
$53,860 |
$30,959 |
$10,262 |
|
1995: |
$528,676 |
$128,545 |
$82,201 |
$55,994 |
$31,993 |
$10,522 |
|
1996: |
$617,037 |
$137,515 |
$86,234 |
$58,215 |
$33,221 |
$10,817 |
|
1997: |
$718,499 |
$148,967 |
$91,191 |
$61,233 |
$34,896 |
$11,440 |
|
1998: |
$815,991 |
$158,755 |
$96,465 |
$64,418 |
$36,582 |
$12,086 |
|
1999: |
$915,014 |
$170,424 |
$101,739 |
$67,403 |
$38,061 |
$12,428 |
|
2000: |
$1,042,681 |
$181,514 |
$107,310 |
$70,604 |
$39,804 |
$13,008 |
|
| |
The Average-Income represents the biggest con. We are all made to
believe that, "on average", people are doing just fine. After
all, if we are to believe the IRS data presentation, the
"Top-25%" are earning an average of $134,574 and the"Top-50%"
are averaging $87,189. But does anyone really comprehend the
effect of including Warren Buffet and Bill Gates again and again
in each and every quintile? The truth is much bleaker.
The Bottom-HALF, the same group that paid 412 Billion
in taxes (1986-2000), is grossing $13,008. Looking at the
top-50%, the fifth quintile is grossing $39,804, and even those
in the income percentile between the top 10% and the top 25% are
still only grossing $70,604. |
|
Average After-Tax income |
|
Average After-Tax income |
| |
|
Year |
Top 1% |
Top 5% |
Top 10% |
Top 25% |
Top 50% |
|
1986: |
$187,094 |
$88,551 |
$67,197 |
$47,449 |
$34,499 |
|
1987: |
$240,215 |
$105,883 |
$78,471 |
$53,696 |
$38,189 |
|
1988: |
$330,661 |
$129,141 |
$91,574 |
$59,886 |
$41,682 |
|
1989: |
$322,515 |
$130,803 |
$93,969 |
$61,808 |
$43,068 |
|
1990: |
$328,865 |
$134,382 |
$96,621 |
$63,823 |
$44,534 |
|
1991: |
$304,031 |
$131,629 |
| |
