Who pays the income tax?

Who pays the income tax?

The top 1% of income earners paid 37.4% of federal income taxes in 2000 and 33.9% in 2001, according to IRS figures released yesterday. Fluctuations in their incomes have a disproportionate impact on income tax revenues. Here's today's New York Times story David Cay Johnston: "Top 1% in '01 Lost Income, but Also Paid Lower Taxes"

"The incomes of the top 1 percent of Americans fell 18 percent in 2001, as did their income taxes, shaving $66 billion off revenues and showing how dependent the federal government has become on its wealthiest citizens.

"Over all, Americans had 2.8 percent less income in 2001 than in the previous year. But federal tax revenues fell 9.4 percent because the incomes of those at the top, who pay the highest tax rates, dropped so much more than the average...

"...The minimum income to reach the top 1 percent was $293,000 last year, down from $313,500 in 2000, but almost identical to the threshold in 1999."

Revised