Under Obama Tax Rates Hit 30-Year Low
In 2009, Americans payed lower taxes than they had in 30 years.
The Congressional Budget Office found that the average tax rate in 2009 was 17.4 percent, the lowest since 1979, and down from 19.9 percent in 2007. Although figures are only available through 2009, the CBO expects to see the historic lows maintained through 2010 and 2011…
In part, the tax decline was due to the dramatic decrease in average income that year, an effect of the Great Recession that caused many Americans to slide down into lower tax brackets. In 2009, the average household income was $88,400, according to the Financial Times, notably less than the $101,000 average in 2007. The top 1 percent of earners saw their income decrease by more than a third.
But, the low rates also reflect measures the Obama administration took to mediate the impact of the recession, including the “Making Work Pay” tax credit and other cuts bundled in the stimulus package. The lowest fifth of earners saw the most dramatic decrease, paying an average tax rate of 1 percent compared with 5.1 percent in 2007.Click here for reuse options!
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