Wednesday, October 10, 2012
“filers with over $200,000 of income earned 26% of all personal income in 2009, but received only 12% of tax exemptions and deductions.”
The Real Reason Romney’s Tax Math Doesn’t Add Up
We can look at the IRS Statistics of Income report for 2009, the most recent year available. Tax returns reporting less than $200,000 of adjusted gross income (AGI) accounted for a total AGI of $5.86 trillion, and taxable income of $3.96 trillion. That is, deductions and exemptions amounted to 45 percent of adjusted gross income for people making under $200,000.
Tax returns with more than $200,000 of AGI (the highest-earning 2.8 percent of filers) had a total of $1.96 trillion in AGI and $1.62 trillion in taxable income. For this high-income group, deductions and exemptions were just 18 percent of adjusted gross income.
Simon Owens is an assistant managing editor at U.S. News & World Report. Follow him on Twitter, Facebook, or Google+. Email him at firstname.lastname@example.org