Tax & Revenue Collection Statistics, Trends And Facts 2023

As citizens, taxes are an inescapable part of our financial lives. At both the federal and state levels, taxes fund a wide range of programs and services that are essential to our society.

In this post, we’ll take a comprehensive look at tax and revenue collection statistics to help you better understand how taxes impact our economy and our daily lives.

Federal Tax Collection

The federal government collects taxes from a wide range of sources, including income taxes, corporate taxes, and excise taxes. Here are some key statistics related to federal tax collection:

• The Internal Revenue Service (IRS) collected approximately $3.5 trillion in federal taxes in 2020.
• In 2020, corporate taxes accounted for approximately 7.6% of federal tax revenue.
• The top 1% of taxpayers in the United States pay approximately 40% of all federal income taxes.
• The top 20% of income earners in the United States pay approximately 87% of all federal income taxes.
• The Internal Revenue Service (IRS) audited approximately 0.45% of individual tax returns in 2020.

State and Local Tax Collection

In addition to federal taxes, state and local governments also collect taxes to fund a range of services and programs. Here are some key statistics related to state and local tax collection:

• State and local governments in the United States collected approximately $1.4 trillion in taxes in 2019.
• The state with the highest state and local tax burden per capita in 2021 is New York, with a burden of $8,957 per person.
• The tax gap, which is the difference between taxes owed and taxes paid, is estimated to be around $441 billion per year in the United States.

Taxation and Income Inequality

One of the most significant issues related to taxation is its impact on income inequality. Here are some key statistics related to taxation and income inequality:

• The top 1% of taxpayers in the United States have an average income of approximately $2.2 million per year.
• The bottom 50% of taxpayers in the United States pay approximately 3% of all federal income taxes.
• The top 1% of taxpayers in the United States pay an average tax rate of approximately 24%, while the bottom 50% of taxpayers pay an average tax rate of approximately 3%.

Conclusion

Taxes play a crucial role in funding the programs and services that are essential to our society. While taxes can be a source of frustration for many individuals, it’s important to understand the role they play in our economy and our daily lives. By taking a comprehensive look at tax and revenue collection statistics, we can gain a better understanding of the impact of taxes on our society and work to improve the system for everyone.