Tax Rates: Individual Income vs Social Insurance 2005

by Catherine on March 9, 2008

Inspired by the tax rate graph in my previous post, I created this graph comparing the effective tax rates for the Federal Individual Income tax and Social Insurance (payroll) tax by household quintile. The Earned Income Tax Credit accounts for the negative individual income tax rate for the lowest and second quintiles.

{Click on the image to take a closer look}

Data from Congressional Budget Office

[tags]Tax Rates, United States, Income tax, Social Security[/tags]

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Tagged as: Bar Chart, CIA, Congressional Budget Office, Tax Rates, United States

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federal individual income tax rates | Federal Income Tax

{ 2 comments… read them below or add one }

1 Mike Liveright: THANKS … Of course I believe that there are other factors that might be added:

1) As I understand it, Social Security taxes are matched by the employer, so that the tax rate of those might be more accuratly quoted as 2 times that which are payed by the employee.

2) As I understand it, many people feel that the state and local taxes are somewhat regressive? If you can estimate them, it might be nice to add them to your chart.

3) I would suggest that you might have a final bar, e.g. the sum of the total tax rates.

4) It might also help to remind us of the income levels that divide the quantels.

p.s. Thanks for: a) the plots of Average, thou as pointed out perhaps median income might be used, http://www.visualizingeconomics.com/2006/08/15/average-income-in-the-united-states/
and Real Gross National Income per Person, http://www.visualizingeconomics.com/2007/07/22/real-gross-national-income-per-person/
are interesing. I’d suggest,

1) also plotting income growth/shirinkage on “a)”,
2) documenting if “a)” is in fixed or adjusted dollers, and
3) As it looks as though “a)” and “b)” indicate a massive growth in RGNI per serson, where as Average Income doesn’t in the 1964-2005 period, where did the RGNI go?

Thanks…

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2 Gary Simpson: Hello,

Where do you gather world population by country?

Thanks,

Gary

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