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Recent Trends in the Federal Tax Burden (CRS Report for Congress)

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Release Date March 27, 2000
Report Number RS20059
Report Type Report
Authors Gregg A. Esenwein, Economics Division
Source Agency Congressional Research Service
Summary:

In FY1998, federal tax revenue measured as a percentage of Gross Domestic Product (GDP) was at a record high level; it is projected to remain at high levels into the future. Yet at the same time, the average federal tax rate within each income group has not risen. That these two seemingly contradictory trends can occur simultaneously is primarily the result of the rapid income growth concentrated at the high end of the income distribution where marginal income tax rates are at their highest, coupled with tax reductions enacted in the Taxpayer Relief Act of 1997. This report discusses these trends.
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