A Portrait of the Personal Income Tax Burden in 2001
The Internal Revenue Service (IRS) has released its most recent data on the distribution of income and
personal income tax payments. The IRS data show that a small group of earners accounts for most
federal income tax revenue and highlight how dependent tax revenues are on the incomes of the
highest earners. Incomes of the top 1% of earners declined significantly in the recession year of 2001
(the data arrive with a two-year lag), leading to lower tax collections.