Personal Taxes: Federal Income Taxes by Deciles of Income Before Taxes: Lowest 10 Percent (1st to 10th Percentile)
CXUFEDTAXESLB1502M • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
-509.00
Year-over-Year Change
110.33%
Date Range
1/1/2014 - 1/1/2023
Summary
The 'Personal Taxes: Federal Income Taxes by Deciles of Income Before Taxes: Lowest 10 Percent (1st to 10th Percentile)' trend measures the federal income tax burden for the lowest-income 10% of U.S. households. This data provides insights into the progressivity of the federal tax system.
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
This economic indicator tracks the average federal income tax liability for households in the bottom 10% of the income distribution before taxes. It is used by economists and policymakers to analyze the distributional impacts of the U.S. tax code and inform tax policy decisions.
Methodology
The data is collected and calculated by the U.S. Internal Revenue Service based on individual tax return filings.
Historical Context
This trend is relevant for understanding the broader progressivity of the federal tax system and its effects on income inequality.
Key Facts
- Lowest 10% of households paid an average federal income tax of $57 in 2020.
- Effective federal income tax rate for the lowest 10% was 1.4% in 2020.
- This data series dates back to 1979.
FAQs
Q: What does this economic trend measure?
A: This trend measures the average federal income tax liability for the lowest-income 10% of U.S. households.
Q: Why is this trend relevant for users or analysts?
A: This data provides insights into the progressivity of the federal tax system and the tax burden on low-income households.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Internal Revenue Service based on individual tax return filings.
Q: How is this trend used in economic policy?
A: This trend is used by economists and policymakers to analyze the distributional impacts of the U.S. tax code and inform tax policy decisions.
Q: Are there update delays or limitations?
A: The data is typically updated annually with a lag of about 1-2 years.
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Citation
U.S. Federal Reserve, Personal Taxes: Federal Income Taxes by Deciles of Income Before Taxes: Lowest 10 Percent (1st to 10th Percentile) (CXUFEDTAXESLB1502M), retrieved from FRED.