Who Pays For The Bailout?

Jonathan Garthwaite
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Posted: Sep 19, 2008 3:50 PM
So, the banking bailout is going to cost taxpayers as much as $1,000,000,000,000.   

While the media discusses the "bad-debt bailout" being put together over the next few days and how much it's going to cost all of us taxpayers, it's worth taking a look at who will actually be paying that bill when it comes due. 

Based on the 2006 IRS "Who pays taxes" data, the top income brackets will be the ones bailing out all the bad decisons of home-mortgage lenders and home-owners.

Percentiles Ranked by AGI

AGI Threshold on Percentiles

Percentage of Federal Personal Income Tax Paid

Top 1%

$388,806

39.89

Top 5%

$153,542

60.14

Top 10%

$108,904

70.79

Top 25%

$64,702

86.27

Top 50%

$31,987

97.01

Bottom 50%

<$31,987

2.99

Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service 2006