Showing posts with label income_distribution. Show all posts
Showing posts with label income_distribution. Show all posts

Friday, April 28, 2023

Mapping IRS Tax Return Filings Reveals Marked Differences in the Distribution of Income and Dependents

"Most Americans filed their taxes recently, not only providing the federal government with funds needed to operate but also providing the IRS (and ultimately the public) with data about the reported amounts and sources of income, their number of dependents, and other factors that shape the distribution of financial means across the country.

For the U.S. as a whole, the average adjusted gross income (AGI) reported on federal income tax returns filed in 2021 increased to $76,539. This reflects income received during 2020, the first year of the COVID-19 pandemic. Filings during 2021 showed AGI up only slightly from $75,758 during the previous year. This does not adjust for inflation.

Reported income, however, varied markedly across states and counties. Aside from D.C., Massachusetts had the highest average reported income at $101,863, followed by Connecticut at $101,589 and Washington State at $95,584. The lowest AGI with only half that of the top three states was Mississippi at $50,876. West Virginia had the second lowest income at $53,461 while New Mexico returns reported on average an AGI of $56,383 which was the next lowest.
 

AGI does not tell the whole story, of course. Income variation by county does not take into account the cost of living, which is considerably higher in places like New York City and Los Angeles than in rural areas. Nonetheless, mapping the distribution of AGI by county shows where concentrations of lower-income and higher-income tax filers reside..."
Tax Filings and Income Distribution 

Tuesday, May 29, 2012

The U.S. Income Distribution and Mobility: Trends and International Comparisons

"...The extent to which countries undertake policies that affect their income distributions may reflect
national differences in perceptions about the degree of income mobility. In the United States, a
longstanding argument against redistributionary measures has been that each person has an equal opportunity to move up the income ladder. Research raises questions about whether Americans’ reported perceptions about their likelihood of changing position in the income distribution are exaggerated."