Referring to Fig 4b and the attached table, determine whether the shares of federal individual income taxes paid by the top 10%, top 5%, top 1% of households by income, has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year). Increased decreased
Referring to Fig 4b and the attached table, determine whether the shares of federal individual income taxes paid by the top 10%, top 5%, top 1% of households by income, has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year). Increased decreased
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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06. Referring to Fig 4b and the attached table, determine whether the shares of federal individual income taxes paid by the top 10%, top 5%, top 1% of households by income, has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year).
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Increased
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decreased
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Transcribed Image Text:Fig 4b. Shares of individual income tax liabilities (Sources: CBO, NBER, Tax Found.)
Orecession years
90
Omajor tax cuts
80
Itax increases
70
--Share of indiv, income
taxes paid byTop 10%
--Share of indiv. income
taxes paid byTop 5%
60
--Share of indiv. income
taxes paid byTop 1%
50
Share of indiv. income
taxes paid byHighest
Quintile
-Share of indiv. income
taxes paid byFourth
Quintile
Share of indiv. income
taxes paid byMiddle
Quintile
--Share of indiv. income
taxes paid bySecond
Quintile
Share of indiv. income
40
30
20
taxes paid byLowest
Quintile
10
-10
1979 1980 1981
1982
1983 1984 1985 1986 1987 1988 1989 1990 1991
1992
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
2006 2007
recession years
100
100
100
100
100
100
100
major tax cuts
100
100
100
100
100
100
100
tax increases
100
100
48.1 47.6 46.6
49.9 50.5 53.4
62.9 63.7 65.4 66.7 67.7 67.7
67.5 69.6 70.8 | 72.7
Share of indiv. income taxes paid byTop 10%
Share of indiv. income taxes paid byTop 5%
Share of indiv. income taxes paid byTop 1%
47.6
49.1
54.7 56.3 55.3 54.3 54.5 57.2 58.4 59.3 60.8
72.8
72.7
35.6 34.9
33.9 35.0
36.6
37.7 38.3
41.6
42.1
44.5
42.9
42.1
42.1
44.9
46.4
46.9
48.5
50.9 51.8
53.4 55.1 56.2
55.2
54,5
56.6 58.5
60.7
60.9
61.0
18.3 17.4
16.3 17.7
19.6 | 20.7 21.2 | 24.6 23.5 26.6 24.3 23.8 23,4 26.2 | 27.6 | 27.8 29.0 31.4 32.3 33.5 35.0 36.5 34.4 33.0 34.6 36.7 38.8
39.1 39.5
Share of indiv. income taxes paid byHighest Quintile 64.9 | 64.8 63.9
64.9
66.1
66.3 66.9 68.9 70.9 71.9 71.4 70.4 70.8 73.0
73.8 74.9 76.1 77.6 78.2
79.8
80.6
81.2
82.4
82.7
84.8 85.3 86.3
86.3
86.0
Share of indiv. income taxes paid byFourth Quintile
20.2 20.2
20.6 20.2
19.7
19.2
19.0
18.0 17.5
17.2
17.6 17.8
18.0 17.1
16.8
16.9 16.2
15.5
14.9
14.6
14.0 13,5
14.3
14.7
14.6
13.8
13.1
12.9
12.7
Share of indiv. income taxes paid byMiddle Quintile
10.7
10.8
10.9 10.6
10.2
10.1
9.9
9.2
8.7
8.5
8.9 8.9
9.0
8.4
8.1
8.1 7.7
7.3
7.2
6.4
6.1
5.7
5.3
5.4
4.7
4.7
4.4
4.4
4.6
Share of indiv. income taxes paid bySecond Quintile
Share of indiv. income taxes paid byLowest Quintile
4.1
4.2
4.4
4.0
3.8
4.1
4.0
3.7
3.1
2.9
2.8
3.3
2.9
2.5
2.3
1.8
1.9
1.6
1.7
1.3
1.3
1.1
0.3
-0.2
-1.1
-0.9
-0.9
-0.8
-0.3
0.0
0.1
0.2
0.2
0.2
0.3
0.2
0.2
-0.3
-0.4
-0.7
-0.4
-0.8
-0.9
-1.0
-1.7
-2.0
-2.1
-2.0
-2.1
-1.9 -1.6
-2.3
-2.7
-3.0
-2.9
-2.9
-2.8
-3.0
percent
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