October 16, 2019

Americans Now Need at Least $500,000 a Year to Enter Top 1%
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.One definition of rich is getting into the top 1%. If that’s your goal, it’s becoming harder to reach.The income needed to exit the bottom 99% of U.S. taxpayers hit $515,371 in 2017, according to Internal Revenue Service data released this week. That’s up 7.2% from a year earlier, even after adjusting for inflation.Since 2011, when Occupy Wall Street protesters rallied under the slogan “We are the 99%,” the income threshold for the top 1% is up an inflation-adjusted 33%. That outpaces all other groups except for those that are even wealthier.To join the top 0.1%, you would have needed to earn $2.4 million in 2017, an increase of 38% since 2011. The top 0.01% threshold has jumped 46%.Meanwhile, the top 0.001% -- an elite group of 1,433 taxpayers -- earned at least $63.4 million each in 2017, up 51% since the Occupy protests.The median taxpayer, at the 50th percentile, has seen income rise 20% since 2011.Rising inequality is a top focus of the Democratic presidential campaign.“We cannot afford to continue this level of income and wealth inequality,” Vermont Senator Bernie Sanders said during Tuesday’s debate. “We cannot afford a billionaire class, whose greed and corruption has been at war with the working families of this country for 45 years.”Though the rich in the U.S. are doing well, they also pay the greatest share of taxes. The top 1% earned 21% of the country’s income, and paid 38.5% of federal individual income taxes. The top 1% paid a greater share of income tax to the U.S. Treasury than the bottom 90% combined (29.9%).Working-class taxpayers do pay many other taxes, including federal payroll taxes for Social Security and Medicare, and state and local levies. However, the bottom half of the income distribution pays very little toward the federal income tax.The top 50% -- taxpayers with an adjusted gross income of $41,740 or more -- paid 97% of taxes, and earned 89% of income reported to the IRS.The income tax brings in about half of all federal revenues, according to the Congressional Budget Office.Overall, the IRS data show the U.S. collected $1.6 trillion in income taxes from 143.3 million taxpayers reporting a total of $10.9 trillion in adjusted gross income in 2017, the most recent year available.The IRS data don’t reflect the effects of the tax overhaul signed by President Donald Trump at the end of 2017. The law lowered individual income tax rates while eliminating many deductions and slashing the rate on U.S. corporations to 21% from 35%.IRS data through 2017 largely show that average tax rates paid have increased in recent years.(Updates with Bernie Sanders quote from Tuesday’s debate in 8th paragraph.)To contact the reporters on this story: Alex Tanzi in Washington at atanzi@bloomberg.net;Ben Steverman in New York at bsteverman@bloomberg.netTo contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, ;Alex Tanzi at atanzi@bloomberg.net, Steven Crabill, Peter EichenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Academy Awards

‘Oppenheimer’ Reigns at Oscars With Seven Wins, Including Best Picture and Director

Get the latest news about the 2024 Oscars, including nominations, winners, predictions and red carpet fashion at 96th Academy Awards

Around the World

Celebrity News

> Latest News in Media

Watch It
Millie Bobby Brown & Jake Bongiovi Celebrate “Three Years of Bliss” Ahead of Wedding
March 24, 2024
C4Ehegcq1-A
Kate Middleton & Prince William "Enormously Touched" by Public Support
March 24, 2024
s8fig-RCjFc
Gisele Bündchen Denies Cheating on Ex-Husband Tom Brady
March 23, 2024
_SpRMagA8BM
Eminem, 50 Cent & Snoop Dogg Present Dr. Dre with a Star on the Walk of Fame
March 19, 2024
4bNLs1hxVp8
Opening Remarks for the Variety Summit October 20th, 2023 Jay Penske
March 18, 2024
c6Z707iLq8E
'Everybody Was S----ing Their Pants': Nick Thune Jokes About Being Born in the '70s and Fatherhood
March 16, 2024
mm7Baf6o2d8
Gunna Says Tour Will Up Creativity in Rap, Endorses Flo Milli | TMZ
March 22, 2024
QfMU24fw-Qo
Reporter Taylor Lorenz Says Palace Botched Kate Cancer News Rollout | TMZ Live
March 22, 2024
o43ZucdiyEo
Riley Strain's Body Found After Going Missing in Nashville 2 Weeks Ago | TMZ NOW
March 22, 2024
1m1zM-4_Cs8
Kyle Richards hasn’t spoken to co-star Dorit Kemsley, denies sending her a ‘manipulative’ text
March 24, 2024
LqLZzDP1hm4
Jordan Emanuel on her connection to 'RHOSLC' star Meredith Marks, advice from Amanda Batula
March 24, 2024
5NPAwlOov1Y
Kate Middleton’s uncle Gary apologizes after slamming ‘fickle’ Meghan Markle in scathing interview
March 24, 2024
JWG9kitALZk
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
20
Mar
CHAMPIONS LEAGUE: Playoffs - Women
SK Brann W - Barcelona W
20
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Hacken W - PSG W
19
Mar
CHAMPIONS LEAGUE: Playoffs - Women
SL Benfica W - Lyon W
19
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Ajax W - Chelsea W
17
Mar
SPAIN: La Liga
Atletico Madrid - Barcelona
17
Mar
ENGLAND: FA Cup
Manchester United - Liverpool
17
Mar
ITALY: Serie A
Inter Milan - Napoli
17
Mar
ENGLAND: Premier League
Brighton - Manchester City
17
Mar
GERMANY: Bundesliga
Borussia Dortmund - Eintracht Frankfurt
17
Mar
ENGLAND: FA Cup
Chelsea - Leicester City
17
Mar
ITALY: Serie A
Roma - Sassuolo
17
Mar
ITALY: Serie A
Verona - AC Milan
17
Mar
ITALY: Serie A
Juventus - Genoa
16
Mar
GERMANY: Bundesliga
Darmstadt - Bayern Munich
16
Mar
ENGLAND: FA Cup
Manchester City - Newcastle United
16
Mar
ENGLAND: Premier League
Fulham - Tottenham Hotspur
16
Mar
SPAIN: La Liga
Osasuna - Real Madrid
13
Mar
CHAMPIONS LEAGUE: 1/8 Final
Atletico Madrid - Inter Milan
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Barcelona - Napoli
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Arsenal - Porto
11
Mar
ENGLAND: Premier League
Chelsea - Newcastle United
10
Mar
ENGLAND: Premier League
Liverpool - Manchester City
10
Mar
SPAIN: La Liga
Real Madrid - Celta Vigo
10
Mar
ENGLAND: Premier League
Aston Villa - Tottenham Hotspur
10
Mar
ITALY: Serie A
Juventus - Atalanta
10
Mar
ITALY: Serie A
Fiorentina - Roma
10
Mar
ITALY: Serie A
AC Milan - Empoli
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.