(b) of Figure 15.8 "Tax Incidence and the Elasticity of Demand and of Supply" Taking these adjustments into account, the CBO’s results, showing progressivity in federal taxes, are reported inTable 15.2 "Federal Tax Burdens in the United States" Table 15.2 Federal Tax Burdens in the United States Households (number, millions) Average pretax comprehensive household income Effective federal tax rate, 2006 (percent) Lowest quintile 24.0 $18,568 5.6 Second quintile 22.8 $42,619 12.1 Middle quintile 23.3 $64,178 15.7 Fourth quintile 23.2 $94,211 19.8 Highest quintile 24.3 $227,677 26.5 All quintiles 118.3 $89,476 21.6 Income category In a regressive tax system, people in the lowest quintiles face the highest tax rates A proportional system imposes the same rates on everyone; a progressive system imposes higher rates on people in higher deciles The table gives estimates by the CBO of the burden on each quintile of federal taxes in 2006 As you can see, the tax structure in the United States is progressive Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 818