Presentation to the National Tax Association 2012 Spring Symposium

1. Congressional Budget Office
May 17,2012
Trends in The Distribution of Household
Income, 1979-2007
Presentation to the National Tax Association 2012 Spring Symposium
Ed Harris, Principal Analyst
Frank 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.

2. Cumulative Growth in Average After-Tax Income, by
Income Group
Percentage change in income since 1979, adjusted for inflation
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3. Summary Measures of Income Inequality, With and
Without Transfers and Federal Taxes
Gini Index
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4. Share of Total Transfers, by Market Income Group
Percent
60
50
Lowest Quintile
40
30
Second Quintile
20
Middle Quintile
10
Highest Fourth Quintile
Quintile
0
1980 1985 1990 1995 2000 2005
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5. Federal Taxes as a Percentage of Household Income, by
Income Group
Percent
40
Top 1 Percent
35
30
81st to 99th Percentiles
25
20
21st to 80th Percentiles
15
10
Lowest Quintile
5
0
1980 1985 1990 1995 2000 2005
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6. Indexes of the Progressivity of Federal Individual
Income Taxes
36
31
Difference Between Tax Concentration
Index and Pretax Gini
26
21 12
10
Average Tax Rate
4 8
3 Difference Between Pretax Gini and
Gini after Individual Income Taxes
2
1979 1984 1989 1994 1999 2004
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7. Indexes of the Progressivity of All Federal Taxes
15
13 Difference Between Tax Concentration
Index and Pretax Gini
11
9
23
21
Average Tax Rate
4 19
3
Difference Between Pre-and Post-
Tax Gini
2
1979 1984 1989 1994 1999 2004
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