Thursday, October 16, 2025

By the Numbers - Income Inequality in the United States

The 2022 data in the two tables below come from the IRS - Publication 1304 Basic Table Part 1 . The IRS has not published any more current data beyond 2022. The oldest data available in Publication 1304 is for the 1996 tax year. Years from 1954 to 1999 can be found at this IRS site.

The data in a very real way speaks for itself.

The following facts come from the tax summaries for 1960, 1996, and 2022(Adjusted Gross Income = AGI):

  • In 1960, the bottom 52.1% earned 22.3% of the total national AGI, while the top 1.5% earned 10.6%
  • In 2022, the bottom 52.0% earned 12.8% of the total national AGI, while the top 1.5% earned 25.9%

In 2022, the bottom 52.04% had an average income of $28,587, while the top 1.53% had an average income of $1,552,150.

This is what uncontrolled capitalism looks like. No wonder so many Americans are angry

Tax Impact

The driving force behind this concentration of income is the tax policy that allows the very rich to pay very little in taxes. Trump is a classic example of the this tax avoidance policy.

Below is a sanp shot of the effect of the 2022 results of the current tax policy that was reconfirmed this summer.
In the second chart below, from 2022, you can see the following numbers.

  • the person earning $28,587 is paying 9.96% in income tax
  • the person earning $288,616 is paying 18.81% in income tax
  • the person earning $6,846,585 is paying 22.29% in iincome tax

Who considers this a fair tax policy???

Note: This doesn't reflect the impact of payroll taxes on lower income taxpayers.

The Breakdown of Adjusted Gross Income for 2022

Tax Year 2022

Tax Filings % of Filings AGI Income % of Total AGI Avg. Individual AGI
(in thousands) (in millions)
National Total 161,337 $14,883,957
AGI Ranges
No AGI 3,254 2.02% $(164,160) -1.10%
0 - 5,000 8,196 5.08% $19,539 0.13% $2,384
5,000-10,000 8,748 5.42% $66,071 0.44% $7,553
10,000-50,000 63,768 39.52% $1,822,956 12.25% $28,587
50,000 - 75,000 23,806 14.76% $1,466,486 9.85% $61,602
75,000 - 100,000 15,181 9.41% $1,315,620 8.84% $86,662
100,000 - 200,000 25,997 16.11% $3,567,048 23.97% $137,210
200,000 - 500,000 10,017 6.21% $2,891,065 19.42% $288,616
500,000 - 1,000,000 1,675 1.04% $1,124,299 7.55% $671,223
1,000,000 - 1,500,000 361 0.22% $435,178 2.92% $1,205,479
1,500,000 - 2,000,000 148 0.09% $254,477 1.71% $1,719,439
2,000,000 - 5,000,000 208 0.13% $621,044 4.17% $2,985,788
5,000,000 - 10,000,000 53 0.03% $362,816 2.44% $6,845,585
10,000,000 - 5,000,000,000 35 0.02% $1,051,519 7.06% $30,043,400
Total with AGI 158,193 $14,998,118

Breakdown of Income Taxes Paid by AGI Ranges in 2022

Tax Year 2022

Taxable Filings Taxable Income Taxes Paid Avg. Tax Rate Marginal Tax Rate
(in thousands) (in millions)
National Total 110,626 $11,404,335 $2,098,923
AGI Ranges *** ***
No AGI 0 $0 $129
0 - 5,000 102 $150 $19 12.67% 10%
5,000-10,000 119 $405 $41 10.12% 10%
10,000-50,000 36,466 $639,466 $63,735 9.96% 12%
50,000 - 75,000 21,378 $926,334 $100,104 10.81% 22%
75,000 - 100,000 14,549 $946,048 $113,079 11.95% 22%
100,000 - 200,000 25,547 $2,858,175 $397,720 13.92% 24%
200,000 - 500,000 9,990 $2,541,372 $254,285 18.81% 35%
500,000 - 1,000,000 1,671 $1,028,824 $110,819 24.72% 37%
1,000,000 - 1,500,000 360 $398,507 $435,178 27.81% 37%
1,500,000 - 2,000,000 147 $232,336 $254,477 28.96% 37%
2,000,000 - 5,000,000 208 $565,832 $621,044 29.34% 37%
5,000,000 - 10,000,000 53 $329,350 $362,816 22.29% 37%
10,000,000 - 5,000,000,000 36 $937,404 $251,097 26.79% 37%
Total with AGI 158,193 $14,998,118

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