FLAT AT THE TOP

Federal taxes are progressive up to $200,000 a year, then they flatten out, an article in the LA Times points out. The article has this interesting tidbit:

Though most pay at least somewhat less in taxes than they did a few years ago, the Federal Reserve Board, in its latest three-year examination of family finances, found that average family income fell by 2% between 2001 and 2004 after adjusting for inflation. In the previous three-year period, average family income grew by 17%.

Here's a table of the effective tax rates by income level:

The average percentage of their income that people paid in combined federal income and payroll taxes in 2005:
Income What people actually paid
(In thousands of 2005 dollars)

Less than $10 2.3%
$10-20 3.7
$20-30 9.1
$30-40 13.6
$40-50 15.8
$50-75 17.4
$75-100 18.9
$100-200 20.6
$200-500 21.5
$500-1,000 22.0
Over $1,000 22.0