The Increasing Tax Share vs. Income Share Gap
A previous CD post showed the rising income tax share of the top 1% vs. the declining tax share of the bottom 50% based on the most recent IRS data through 2006. The chart above shows the income share of the top 1% vs. the tax share of the top 1% from 1986 to 2006.
The chart shows that the difference between the top 1%'s tax share (about 25% in the late 1980s) and that group's income share (about 14% in the late 1980s), which increased from 11% in the earlier period to 18% by 2006, when the tax share had increased to about 40% for the top 1% compared to that group's income share of 22%. Stated differently, the income share of the top 1% increased by about .55% per year from 1986 to 2006, compared to the tax share of the top 1%, which increased by about .75% per year.