Increase in Child Tax Credit Sends Families with Many Children off the Tax Rolls

 
 
October 10, 2006

Fiscal Fact No. 69

Across the nation, nearly every income group in every state has had its taxes cut in recent years. With new data from the Internal Revenue Service (IRS) on the taxes paid for 2004, we can now see the full effects of the so-called Bush tax cuts enacted in 2001 and 2003. Because states have different demographic profiles, some states’ taxpayers benefit more than others from the tax cuts.

Since the Bush tax cuts went into effect, a growing number of tax filers have been paying no federal income taxes. Millions who paid into the federal till each year before 2001 now get every dollar back that the federal government withheld from their paychecks during the year, and then some. This trend is well documented but frequently ignored by critics of the tax cuts.

Two changes in tax law have caused this explosion in the number of “non-payers”—tax returns that have zero or even negative federal income tax liability. They are the expansion of the child tax credit from $500 to $1,000 (complete in 2003) and the creation of the 10 percent taxable income bracket (complete in 2001).

Impact of Children on Number of Non-Payers
Table 1 illustrates how these two policy changes have affected the taxpaying public in each state. Even though the percentage of taxpayers who pay no income taxes has grown in every state, the tax savings vary widely from state to state. States with a high number of children per family, such as Utah, saw larger increases in the fraction of tax returns that had no liability. In states (and the District of Columbia) where there are fewer children per family, most taxpayers who owed taxes before 2001 still owe taxes each year.

The Census Bureau ranks the states based on the percentage of each state’s population that is under 18. The District of Columbia has the smallest percentage of children of any U.S. state (ranked 51st), and also has the fewest number of people pushed off the tax rolls. The correlation is not always that exact, but in general these child-friendly tax cuts push fewer people off the rolls in states with fewer children.

Typical are Wyoming (50th lowest in the growth of non-payers, 45th lowest in percentage of children), North Dakota (48th lowest in the growth of non-payers, 47th lowest in percentage of children), and Maine (41st lowest in the growth of non-payers, 50th lowest in percentage of children). Six of the ten states with the smallest increase in non-payers also have the smallest under-18 populations.

Before 2001, almost every tax return with zero liability had adjusted gross income (AGI) under $50,000. Most were under $40,000. Since 2003, however, many tax returns in the $50,000-$75,000 income group are showing up in the non-payer category. This illustrates the dramatic decrease in the tax burdens of low-to-middle income earners that has occurred as a result of the tax cuts. Utah has seen the largest change in this income group: in 2000, about 2 percent of all returns in that income group were non-payers, while in 2004, 12 percent of those middle-income tax returns paid nothing in income taxes. In California, only 1 percent of tax returns in this bracket owed nothing in 2000, but four years later with the tax cuts fully phased in, 7 percent of the tax returns showing AGI of $50,000-$75,000 paid no income taxes to Uncle Sam.

Another factor influencing the growing number of non-payers is the increase in the “refundable portion” of the child tax credit. The opportunity to make money by filing a tax return encourages filing by individuals whose incomes are low enough that they are not required to file a return, or who had zero income withheld.

Conclusion  
Before the 2001 and 2003 tax cuts, non-paying returns were approximately one-fourth of all tax returns, and they were almost exclusively in the lower-income groups. Now almost one-third of all tax returns show the filer getting every dollar withheld back, or even more. And for the first time, a significant percentage of tax filers in the middle-income group are being pushed off the rolls. 

Because the child tax credit was doubled from $500 to $1,000 per child in 2003 with a larger refundable portion, and because a new 10 percent taxable income bracket was enacted in 2001, the number of tax returns with zero income tax liability has risen dramatically, as detailed by a comparison of IRS tax return data in 2000 and 2004. The correlation between states with the highest percentages of non-payers and those with the highest percentages of children in the population highlights the pronounced effect of the Bush tax cuts on the growing number of non-paying families with children.

Table 1: Number of Non-Paying Tax Returns Has Grown Dramatically from 2000 to 2004

State Income Group (AGI) Before Recent Tax Cuts After Recent Tax Cuts Percentage Point Increase in Returns with Zero Tax Liability
Number of Returns With Zero Tax Liability (2000) Percentage of All Returns with Zero Tax Liability (2000) Number of Returns with Zero Tax Liability (2004) Percentage of All Returns with Zero Tax Liability (2004)
United States All Taxpayers 29,731,304 22.85% 41,942,378 31.51% 8.66%
Under $50,000 29,614,856 31.67% 41,093,085 44.53% 12.86%
$50,000 - $74,999 90,856 0.53% 727,765 4.06% 3.53%
$75,000 - $99,999 14,867 0.17% 93,058 0.93% 0.76%
$100,000 - $199,999 8,303 0.10% 25,362 0.26% 0.16%
$200,000 and above 2,422 0.09% 3,108 0.10% 0.01%
Alabama All Taxpayers 542,252 28.48% 709,532 37.14% 8.66%
Under $50,000 541,287 36.82% 702,777 49.61% 12.79%
$50,000 - $74,999 727 0.32% 5,881 2.51% 2.19%
$75,000 - $99,999 116 0.11% 632 0.50% 0.39%
$100,000 - $199,999 87 0.11% 206 0.20% 0.09%
$200,000 and above 35 0.15% 36 0.12% -0.02%
Alaska All Taxpayers 44,309 13.48% 71,661 20.76% 7.28%
Under $50,000 44,106 19.10% 69,626 29.55% 10.46%
$50,000 - $74,999 168 0.38% 1,779 3.74% 3.37%
$75,000 - $99,999 21 0.08% 217 0.75% 0.67%
$100,000 - $199,999 10 0.04% 36 0.13% 0.09%
$200,000 and above 4 0.09% 3 0.05% -0.04%
Arizona All Taxpayers 488,403 22.69% 762,770 32.15% 9.46%
Under $50,000 486,060 31.14% 745,221 44.88% 13.74%
$50,000 - $74,999 1,841 0.65% 15,201 4.75% 4.10%
$75,000 - $99,999 308 0.22% 1,774 1.01% 0.79%
$100,000 - $199,999 145 0.11% 507 0.30% 0.19%
$200,000 and above 49 0.12% 67 0.14% 0.01%
Arkansas All Taxpayers 322,159 28.80% 425,035 37.41% 8.61%
Under $50,000 321,687 36.04% 421,244 48.46% 12.41%
$50,000 - $74,999 336 0.26% 3,365 2.45% 2.19%
$75,000 - $99,999 80 0.16% 336 0.52% 0.36%
$100,000 - $199,999 46 0.12% 79 0.16% 0.03%
$200,000 and above 10 0.08% 11 0.07% -0.01%
California All Taxpayers 3,522,822 23.70% 4,941,456 32.24% 8.54%
Under $50,000 3,498,989 33.96% 4,770,763 46.58% 12.62%
$50,000 - $74,999 18,460 0.96% 141,666 6.94% 5.99%
$75,000 - $99,999 3,214 0.31% 22,465 1.90% 1.59%
$100,000 - $199,999 1,750 0.15% 5,917 0.43% 0.27%
$200,000 and above 409 0.09% 645 0.14% 0.04%
Colorado All Taxpayers 401,465 19.15% 590,139 27.96% 8.81%
Under $50,000 399,424 27.95% 574,042 41.35% 13.40%
$50,000 - $74,999 1,627 0.55% 13,875 4.54% 3.99%
$75,000 - $99,999 218 0.14% 1,698 0.95% 0.81%
$100,000 - $199,999 145 0.09% 462 0.25% 0.16%
$200,000 and above 51 0.09% 62 0.12% 0.02%
Connecticut All Taxpayers 268,977 16.09% 391,202 23.49% 7.40%
Under $50,000 267,117 25.40% 380,659 37.92% 12.53%
$50,000 - $74,999 1,345 0.54% 8,615 3.51% 2.97%
$75,000 - $99,999 326 0.22% 1,385 0.88% 0.66%
$100,000 - $199,999 153 0.10% 486 0.26% 0.17%
$200,000 and above 36 0.05% 57 0.08% 0.02%
Delaware All Taxpayers 70,767 18.71% 102,595 25.93% 7.22%
Under $50,000 70,555 27.08% 100,816 38.53% 11.44%
$50,000 - $74,999 165 0.31% 1,534 2.69% 2.38%
$75,000 - $99,999 27 0.09% 179 0.52% 0.43%
$100,000 - $199,999 17 0.06% 62 0.18% 0.12%
$200,000 and above 3 0.04% 4 0.05% 0.00%
D.C. All Taxpayers 63,164 22.62% 75,409 27.14% 4.52%
Under $50,000 62,752 30.75% 74,104 39.39% 8.65%
$50,000 - $74,999 335 1.05% 1,050 2.88% 1.82%
$75,000 - $99,999 44 0.29% 158 0.86% 0.56%
$100,000 - $199,999 28 0.15% 87 0.37% 0.22%
$200,000 and above 5 0.05% 10 0.09% 0.04%
Florida All Taxpayers 1,839,705 24.53% 2,743,058 33.56% 9.03%
Under $50,000 1,833,894 32.39% 2,701,568 45.28% 12.89%
$50,000 - $74,999 3,991 0.45% 34,582 3.52% 3.07%
$75,000 - $99,999 925 0.23% 4,720 0.91% 0.69%
$100,000 - $199,999 625 0.16% 1,846 0.36% 0.20%
$200,000 and above 270 0.17% 342 0.17% 0.00%
Georgia All Taxpayers 905,281 24.89% 1,339,715 35.42% 10.52%
Under $50,000 902,605 34.09% 1,317,598 49.21% 15.12%
$50,000 - $74,999 2,071 0.45% 19,158 3.97% 3.52%
$75,000 - $99,999 352 0.15% 2,277 0.85% 0.69%
$100,000 - $199,999 190 0.08% 606 0.22% 0.14%
$200,000 and above 63 0.08% 76 0.09% 0.01%
Hawaii All Taxpayers 125,562 21.94% 173,262 28.59% 6.64%
Under $50,000 124,778 29.87% 168,679 39.77% 9.90%
$50,000 - $74,999 646 0.85% 3,986 4.79% 3.94%
$75,000 - $99,999 75 0.19% 473 1.02% 0.83%
$100,000 - $199,999 58 0.18% 111 0.27% 0.09%
$200,000 and above 5 0.06% 13 0.12% 0.06%
Idaho All Taxpayers 139,356 24.92% 204,956 34.49% 9.57%
Under $50,000 138,632 32.72% 199,117 45.79% 13.07%
$50,000 - $74,999 628 0.85% 5,219 6.34% 5.49%
$75,000 - $99,999 60 0.20% 503 1.29% 1.09%
$100,000 - $199,999 29 0.12% 107 0.36% 0.24%
$200,000 and above 7 0.09% 10 0.12% 0.03%
Illinois All Taxpayers 1,218,150 21.05% 1,752,365 30.41% 9.36%
Under $50,000 1,213,401 30.49% 1,714,486 44.65% 14.16%
$50,000 - $74,999 3,849 0.47% 33,213 4.03% 3.56%
$75,000 - $99,999 524 0.12% 3,667 0.77% 0.65%
$100,000 - $199,999 297 0.07% 897 0.19% 0.12%
$200,000 and above 79 0.06% 102 0.07% 0.01%
Indiana All Taxpayers 610,116 21.50% 862,672 30.22% 8.71%
Under $50,000 608,563 29.81% 848,267 42.71% 12.91%
$50,000 - $74,999 1,268 0.30% 12,891 3.04% 2.74%
$75,000 - $99,999 162 0.08% 1,236 0.54% 0.46%
$100,000 - $199,999 102 0.07% 252 0.14% 0.07%
$200,000 and above 21 0.05% 26 0.06% 0.01%
Iowa All Taxpayers 268,006 19.84% 375,261 28.12% 8.28%
Under $50,000 267,256 26.91% 367,255 39.26% 12.35%
$50,000 - $74,999 624 0.31% 7,252 3.54% 3.24%
$75,000 - $99,999 70 0.09% 627 0.60% 0.52%
$100,000 - $199,999 46 0.08% 118 0.16% 0.08%
$200,000 and above 10 0.06% 9 0.05% -0.01%
Kansas All Taxpayers 256,608 20.99% 379,430 30.86% 9.87%
Under $50,000 255,826 29.10% 372,361 43.26% 14.17%
$50,000 - $74,999 641 0.37% 6,338 3.61% 3.25%
$75,000 - $99,999 95 0.12% 573 0.61% 0.49%
$100,000 - $199,999 35 0.05% 146 0.19% 0.13%
$200,000 and above 11 0.06% 12 0.06% 0.00%
Kentucky All Taxpayers 431,155 24.68% 571,899 32.54% 7.86%
Under $50,000 430,339 32.25% 564,959 43.91% 11.67%
$50,000 - $74,999 638 0.28% 6,168 2.58% 2.30%
$75,000 - $99,999 90 0.10% 611 0.52% 0.42%
$100,000 - $199,999 69 0.10% 142 0.16% 0.06%
$200,000 and above 19 0.09% 19 0.08% -0.01%
Louisiana All Taxpayers 578,458 30.86% 737,937 39.48% 8.62%
Under $50,000 577,445 39.40% 731,141 51.52% 12.12%
$50,000 - $74,999 774 0.36% 5,916 2.72% 2.37%
$75,000 - $99,999 126 0.13% 653 0.57% 0.44%
$100,000 - $199,999 82 0.11% 189 0.20% 0.09%
$200,000 and above 31 0.13% 38 0.15% 0.03%
Maine All Taxpayers 126,714 20.92% 173,810 28.09% 7.16%
Under $50,000 126,360 27.51% 171,039 38.14% 10.62%
$50,000 - $74,999 294 0.36% 2,450 2.79% 2.43%
$75,000 - $99,999 40 0.12% 248 0.59% 0.47%
$100,000 - $199,999 16 0.07% 70 0.22% 0.16%
$200,000 and above 4 0.05% 3 0.03% -0.02%
Maryland All Taxpayers 478,553 18.67% 670,826 25.45% 6.78%
Under $50,000 475,256 28.21% 649,837 39.94% 11.73%
$50,000 - $74,999 2,637 0.71% 17,439 4.51% 3.80%
$75,000 - $99,999 449 0.21% 2,878 1.17% 0.96%
$100,000 - $199,999 178 0.08% 641 0.22% 0.14%
$200,000 and above 33 0.05% 31 0.04% -0.01%
Massachusetts All Taxpayers 495,293 15.93% 720,415 23.53% 7.61%
Under $50,000 492,651 24.31% 701,257 36.49% 12.18%
$50,000 - $74,999 2,049 0.46% 16,184 3.68% 3.22%
$75,000 - $99,999 346 0.14% 2,253 0.82% 0.68%
$100,000 - $199,999 202 0.07% 652 0.21% 0.13%
$200,000 and above 45 0.04% 69 0.06% 0.02%
Michigan All Taxpayers 952,906 20.63% 1,370,049 30.04% 9.41%
Under $50,000 949,747 30.01% 1,342,723 43.74% 13.73%
$50,000 - $74,999 2,621 0.39% 23,961 3.61% 3.22%
$75,000 - $99,999 343 0.09% 2,713 0.69% 0.60%
$100,000 - $199,999 145 0.04% 599 0.17% 0.12%
$200,000 and above 50 0.06% 53 0.07% 0.00%
Minnesota All Taxpayers 412,551 17.29% 607,385 25.23% 7.94%
Under $50,000 410,471 25.40% 589,351 37.77% 12.37%
$50,000 - $74,999 1,740 0.47% 15,823 4.22% 3.75%
$75,000 - $99,999 223 0.12% 1,767 0.80% 0.68%
$100,000 - $199,999 98 0.06% 399 0.20% 0.14%
$200,000 and above 19 0.04% 45 0.08% 0.04%
Mississippi All Taxpayers 382,989 32.64% 490,921 42.10% 9.47%
Under $50,000 382,425 40.10% 486,876 53.15% 13.05%
$50,000 - $74,999 413 0.33% 3,601 2.80% 2.46%
$75,000 - $99,999 66 0.13% 331 0.53% 0.39%
$100,000 - $199,999 54 0.15% 93 0.20% 0.05%
$200,000 and above 31 0.28% 20 0.17% -0.11%
Missouri All Taxpayers 581,238 22.66% 804,161 31.10% 8.44%
Under $50,000 579,809 30.52% 791,730 42.84% 12.32%
$50,000 - $74,999 1,124 0.33% 10,987 3.08% 2.75%
$75,000 - $99,999 162 0.10% 1,129 0.61% 0.51%
$100,000 - $199,999 111 0.09% 274 0.18% 0.09%
$200,000 and above 32 0.08% 41 0.10% 0.02%
Montana All Taxpayers 117,498 27.70% 153,047 34.81% 7.11%
Under $50,000 117,191 34.70% 150,679 44.81% 10.11%
$50,000 - $74,999 267 0.53% 2,106 3.79% 3.26%
$75,000 - $99,999 23 0.12% 205 0.82% 0.69%
$100,000 - $199,999 11 0.08% 55 0.32% 0.24%
$200,000 and above 6 0.13% 2 0.04% -0.09%
Nebraska All Taxpayers 170,847 21.12% 243,159 30.06% 8.94%
Under $50,000 170,303 28.37% 237,879 41.27% 12.90%
$50,000 - $74,999 434 0.38% 4,809 4.16% 3.77%
$75,000 - $99,999 61 0.13% 373 0.63% 0.50%
$100,000 - $199,999 37 0.10% 87 0.19% 0.09%
$200,000 and above 12 0.11% 11 0.09% -0.02%
Nevada All Taxpayers 188,938 19.81% 308,810 28.26% 8.46%
Under $50,000 187,863 27.17% 299,722 39.82% 12.65%
$50,000 - $74,999 771 0.57% 7,755 4.90% 4.33%
$75,000 - $99,999 151 0.25% 911 1.12% 0.87%
$100,000 - $199,999 96 0.20% 321 0.43% 0.23%
$200,000 and above 57 0.31% 101 0.39% 0.08%
New Hampshire All Taxpayers 103,112 16.39% 151,959 23.63% 7.24%
Under $50,000 102,710 24.55% 148,016 36.04% 11.49%
$50,000 - $74,999 313 0.33% 3,438 3.51% 3.19%
$75,000 - $99,999 49 0.10% 409 0.68% 0.58%
$100,000 - $199,999 35 0.07% 88 0.15% 0.08%
$200,000 and above 5 0.03% 8 0.05% 0.02%
New Jersey All Taxpayers 762,774 18.75% 1,091,990 26.59% 7.83%
Under $50,000 758,409 29.06% 1,063,675 42.20% 13.14%
$50,000 - $74,999 3,453 0.61% 23,686 4.17% 3.56%
$75,000 - $99,999 532 0.15% 3,696 0.98% 0.82%
$100,000 - $199,999 309 0.08% 857 0.18% 0.10%
$200,000 and above 71 0.05% 76 0.05% 0.00%
New Mexico All Taxpayers 226,640 31.14% 305,699 36.96% 5.81%
Under $50,000 226,236 38.64% 302,287 48.38% 9.74%
$50,000 - $74,999 316 0.41% 3,025 3.11% 2.70%
$75,000 - $99,999 54 0.16% 292 0.59% 0.43%
$100,000 - $199,999 30 0.11% 85 0.19% 0.07%
$200,000 and above 4 0.07% 10 0.09% 0.02%
New York All Taxpayers 1,969,116 22.96% 2,695,558 31.25% 8.29%
Under $50,000 1,959,696 32.33% 2,640,181 44.95% 12.62%
$50,000 - $74,999 7,248 0.65% 46,460 4.06% 3.40%
$75,000 - $99,999 1,322 0.23% 6,807 1.05% 0.82%
$100,000 - $199,999 672 0.11% 1,876 0.27% 0.15%
$200,000 and above 178 0.08% 234 0.09% 0.02%
North Carolina All Taxpayers 846,661 23.28% 1,282,442 34.02% 10.74%
Under $50,000 844,282 31.35% 1,265,050 46.56% 15.22%
$50,000 - $74,999 1,852 0.39% 15,208 3.13% 2.74%
$75,000 - $99,999 314 0.14% 1,686 0.64% 0.50%
$100,000 - $199,999 167 0.09% 456 0.19% 0.11%
$200,000 and above 46 0.08% 42 0.06% -0.01%
North Dakota All Taxpayers 67,347 22.24% 87,831 28.79% 6.55%
Under $50,000 67,202 28.66% 86,483 38.74% 10.08%
$50,000 - $74,999 117 0.29% 1,232 2.78% 2.50%
$75,000 - $99,999 16 0.11% 92 0.45% 0.34%
$100,000 - $199,999 10 0.10% 20 0.15% 0.05%
$200,000 and above 2 0.07% 4 0.10% 0.04%
Ohio All Taxpayers 1,101,725 19.76% 1,523,479 27.97% 8.21%
Under $50,000 1,098,465 26.55% 1,496,964 38.40% 11.84%
$50,000 - $74,999 2,681 0.34% 23,483 3.04% 2.70%
$75,000 - $99,999 326 0.10% 2,402 0.61% 0.51%
$100,000 - $199,999 198 0.08% 576 0.19% 0.11%
$200,000 and above 55 0.07% 54 0.07% 0.00%
Oklahoma All Taxpayers 393,654 26.87% 526,574 35.67% 8.81%
Under $50,000 392,895 34.56% 520,025 47.01% 12.45%
$50,000 - $74,999 599 0.33% 5,862 3.11% 2.78%
$75,000 - $99,999 92 0.12% 514 0.56% 0.44%
$100,000 - $199,999 54 0.09% 162 0.23% 0.14%
$200,000 and above 14 0.08% 11 0.05% -0.02%
Oregon All Taxpayers 344,607 22.06% 492,984 30.73% 8.67%
Under $50,000 342,837 30.42% 481,349 42.93% 12.51%
$50,000 - $74,999 1,455 0.66% 10,216 4.46% 3.79%
$75,000 - $99,999 213 0.21% 1,097 0.91% 0.70%
$100,000 - $199,999 86 0.10% 293 0.28% 0.18%
$200,000 and above 16 0.06% 29 0.10% 0.04%
Pennsylvania All Taxpayers 1,220,509 21.02% 1,684,203 28.98% 7.96%
Under $50,000 1,216,760 29.04% 1,655,395 41.17% 12.12%
$50,000 - $74,999 3,063 0.38% 25,312 3.06% 2.68%
$75,000 - $99,999 407 0.11% 2,731 0.61% 0.50%
$100,000 - $199,999 212 0.07% 699 0.17% 0.11%
$200,000 and above 67 0.06% 66 0.06% -0.01%
Rhode Island All Taxpayers 96,059 19.43% 131,612 26.31% 6.88%
Under $50,000 95,749 27.27% 129,096 38.38% 11.11%
$50,000 - $74,999 247 0.36% 2,213 3.10% 2.74%
$75,000 - $99,999 38 0.11% 241 0.58% 0.47%
$100,000 - $199,999 20 0.07% 57 0.14% 0.08%
$200,000 and above 5 0.06% 5 0.05% -0.01%
South Carolina All Taxpayers 467,074 25.91% 655,493 35.54% 9.62%
Under $50,000 465,951 33.60% 647,225 47.20% 13.59%
$50,000 - $74,999 872 0.40% 7,196 3.18% 2.78%
$75,000 - $99,999 164 0.17% 819 0.68% 0.51%
$100,000 - $199,999 71 0.09% 232 0.23% 0.14%
$200,000 and above 16 0.07% 21 0.08% 0.01%
South Dakota All Taxpayers 85,159 23.98% 115,767 31.96% 7.98%
Under $50,000 84,991 30.71% 113,680 42.20% 11.48%
$50,000 - $74,999 143 0.31% 1,938 3.82% 3.51%
$75,000 - $99,999 9 0.06% 129 0.59% 0.54%
$100,000 - $199,999 12 0.10% 19 0.13% 0.02%
$200,000 and above 4 0.10% 1 0.02% -0.08%
Tennessee All Taxpayers 630,749 24.57% 871,917 33.45% 8.88%
Under $50,000 629,603 31.96% 862,306 44.96% 13.00%
$50,000 - $74,999 831 0.26% 8,463 2.51% 2.25%
$75,000 - $99,999 173 0.13% 867 0.52% 0.39%
$100,000 - $199,999 108 0.10% 245 0.17% 0.08%
$200,000 and above 34 0.09% 36 0.08% -0.01%
Texas All Taxpayers 2,441,164 26.97% 3,516,155 37.28% 10.31%
Under $50,000 2,436,466 36.26% 3,471,333 50.91% 14.65%
$50,000 - $74,999 3,475 0.33% 39,142 3.49% 3.16%
$75,000 - $99,999 705 0.13% 4,273 0.67% 0.54%
$100,000 - $199,999 397 0.07% 1,272 0.19% 0.12%
$200,000 and above 121 0.07% 135 0.07% 0.00%
Utah All Taxpayers 230,450 24.47% 349,911 35.12% 10.65%
Under $50,000 227,277 33.06% 329,922 47.05% 13.99%
$50,000 - $74,999 2,805 2.07% 17,484 11.95% 9.87%
$75,000 - $99,999 270 0.45% 2,140 2.89% 2.44%
$100,000 - $199,999 79 0.18% 342 0.58% 0.41%
$200,000 and above 19 0.14% 23 0.14% 0.01%
Vermont All Taxpayers 59,474 19.87% 83,061 27.12% 7.25%
Under $50,000 59,263 26.85% 81,644 37.64% 10.79%
$50,000 - $74,999 177 0.43% 1,221 2.81% 2.39%
$75,000 - $99,999 18 0.10% 160 0.71% 0.61%
$100,000 - $199,999 14 0.09% 33 0.18% 0.09%
$200,000 and above 2 0.04% 3 0.06% 0.02%
Virginia All Taxpayers 637,123 19.09% 910,930 26.09% 7.01%
Under $50,000 634,490 28.06% 890,369 39.88% 11.81%
$50,000 - $74,999 2,063 0.44% 17,501 3.50% 3.07%
$75,000 - $99,999 335 0.13% 2,396 0.79% 0.65%
$100,000 - $199,999 183 0.07% 619 0.18% 0.11%
$200,000 and above 52 0.07% 45 0.04% -0.02%
Washington All Taxpayers 514,965 18.57% 759,343 26.54% 7.97%
Under $50,000 512,165 27.29% 739,654 39.60% 12.30%
$50,000 - $74,999 2,215 0.52% 16,962 3.90% 3.38%
$75,000 - $99,999 314 0.14% 2,066 0.82% 0.67%
$100,000 - $199,999 198 0.10% 598 0.25% 0.15%
$200,000 and above 73 0.12% 63 0.09% -0.02%
West Virginia All Taxpayers 195,111 26.02% 245,431 32.82% 6.80%
Under $50,000 194,927 32.94% 243,591 43.39% 10.45%
$50,000 - $74,999 143 0.15% 1,639 1.60% 1.45%
$75,000 - $99,999 26 0.07% 159 0.34% 0.27%
$100,000 - $199,999 15 0.07% 39 0.13% 0.06%
$200,000 and above 0 0.00% 3 0.04% 0.04%
Wisconsin All Taxpayers 468,210 18.03% 693,563 26.46% 8.43%
Under $50,000 466,313 25.60% 677,131 38.34% 12.74%
$50,000 - $74,999 1,579 0.38% 14,616 3.54% 3.16%
$75,000 - $99,999 198 0.10% 1,471 0.64% 0.54%
$100,000 - $199,999 102 0.08% 322 0.19% 0.11%
$200,000 and above 18 0.05% 23 0.05% 0.01%
Wyoming All Taxpayers 54,414 23.14% 69,670 28.59% 5.45%
Under $50,000 54,280 31.26% 68,367 40.61% 9.35%
$50,000 - $74,999 104 0.30% 1,158 3.06% 2.76%
$75,000 - $99,999 13 0.09% 114 0.58% 0.48%
$100,000 - $199,999 11 0.12% 28 0.21% 0.09%
$200,000 and above 6 0.17% 3 0.07% -0.10%

Source: Internal Revenue Service and Tax Foundation calculations

Note: All figures are from the IRS Individual Income Tax Data System for all returns filed in that year. More returns were filed for these tax years than appear in the table, due to many factors such as late filing. Unfortunately, the IRS does not re-release state-by-state data to reflect more updated information about income earned in various years. For this reason, the number of nonpaying returns shown in the table nationwide for 2000 is 29.7 million, while in more updated IRS data the is given as 32.5 million. As a result, some rates in this table may differ from previously published tables. However, for most tax rates and percentages, these effects are likely to be small.

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