Personal Taxes: Federal Income Taxes by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile)
CXUFEDTAXESLB0102M • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-518.00
Year-over-Year Change
72.67%
Date Range
1/1/1984 - 1/1/2023
Summary
This economic trend measures federal income taxes paid by the lowest 20% of U.S. income earners. It provides insights into the tax burden and economic status of low-income households.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Personal Taxes: Federal Income Taxes by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile) series tracks the federal income taxes paid by the bottom 20% of U.S. income earners. This data point is a key indicator of the tax burden on low-income households and can inform economic and social policy decisions.
Methodology
The data is collected and calculated by the U.S. Internal Revenue Service (IRS) based on tax return filings.
Historical Context
Policymakers and economists use this trend to assess the distributional impact of the federal income tax system.
Key Facts
- The lowest 20% of U.S. income earners paid an average of $252 in federal income taxes in 2019.
- Federal income taxes accounted for 3.4% of the total income of the lowest 20% of U.S. earners in 2019.
- The federal income tax burden on the lowest 20% of earners has declined by 25% since 2000.
FAQs
Q: What does this economic trend measure?
A: This trend measures the federal income taxes paid by the lowest 20% of U.S. income earners, providing insights into the tax burden on low-income households.
Q: Why is this trend relevant for users or analysts?
A: This trend is relevant for understanding the distributional impact of the federal income tax system and informing economic and social policy decisions.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Internal Revenue Service (IRS) based on tax return filings.
Q: How is this trend used in economic policy?
A: Policymakers and economists use this trend to assess the tax burden on low-income households and inform decisions related to fiscal policy and income distribution.
Q: Are there update delays or limitations?
A: The data is published with a lag, and may be subject to revisions based on updated tax return information.
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Citation
U.S. Federal Reserve, Personal Taxes: Federal Income Taxes by Quintiles of Income Before Taxes: Lowest 20 Percent (1st to 20th Percentile) (CXUFEDTAXESLB0102M), retrieved from FRED.