How Much Money Americans Make on Average Every Year?
December 29, 2009Love Your Health Money Family & Relationship
After looking at your paycheck and taxes, you might might wondering what are other Americans making on average. And how does your salary rank? Recently, IRS released the statistics that enables taxpayers to compare their income with other workers who pay taxes also.
IRS statistics reveal how your income compares to that of other taxpayers. Just about half of Americans earn less than $32,000 each year. So if you fall in this category of average Americans making just about $32,000 per year, here are some facts about you:
* Your $32,000 adjusted gross income (AGI) puts you in the lowest 50% of earners.
* The lowest-earning 50% of taxpayers reported 12.3% of all AGI and paid 2.89% of total income taxes.
* Together, you and the other 70.5 million taxpayers with incomes of $32,879 or less paid a total of $32.3 billion in federal income taxes. This includes millions of low-income workers who actually paid negative income taxes because their Earned Income Tax Credits wiped out their income-tax liability and refunded to them part of the Social Security taxes they paid.
The top 1% of the Americans made more than $410,000 in year 2007. Now there is not only a huge gap between the highest earning and the lowest earning people, but there is also a huge discrepancies within the top 1% earners. This is because there are lot of people who are making tens and hundreds of millions whereas there are small business owners who barely made the cut. But both of them are included in the same category.
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