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Chart of the Day: Growth in High-Income Taxpayers

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by

James A. Bacon
in ,

The Tax Foundation has conducted an interesting exercise: tracking the growth in the number of high-income tax payers (making more than $200,000 per year) between 1999 and 2009 and adjusting for growth in the number of taxpayers generally. North Dakota made the top of the list, presumably benefiting from the natural resource boom in the state, while Alaska ranked second. And No. 3? Why, that would be Virginia, followed by Maryland and Washington, D.C.

That should not come as a surprise to anyone who has been following reports that Washington-region localities dominate the list of richest jurisdictions in the country when ranked by average household income. What the Tax Foundation data tells us is that a surge in the number of taxpayers making more than $200,000 a year — or “millionaires and billionaires,” as our president refers to them — accounts for much of that prosperity.

Moral of the story: Rent seeking is fast becoming the most lucrative economic activity in the United States. (Ritual aside: Yes, Groveton, I know you make your money in the private sector. But you are not like most Northern Virginians.)

— James A. Bacon

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10 responses to “Chart of the Day: Growth in High-Income Taxpayers”

  1. Groveton Avatar
    Groveton

    Interesting theories. No facts but interesting theories.

    Any chance you have a theory to explain West Virginia?

  2. James A. Bacon Avatar
    James A. Bacon

    Metro Washington does spill into small area of West Virginia but I don’t think that’s the explanation. I classify West Virginia in the same category as North Dakota, an energy play. With coal prices rising and exports going gangbusters, I’m guessing that a lot more West Virginians are making money these days than did 10 years ago.

  3. Groveton Avatar
    Groveton

    Hard to buy your WVa theory without seeing something similar in Ky.

    This is a pretty interesting phenomenon. West Virginia has 76% more people making $200,000 per year than was the case 10 years ago (after adjusting for overall population growth).

  4. Hydra Avatar
    Hydra

    Here is a thought, what happens when wealthy aging boomers start liquidating their 401Ks and downsizing their homes?

    Sounds like the younger generation will get some great buys. Maybe we should not worry so.about the debt we hand them.

  5. larryg Avatar
    larryg

    well some of the younger generation is busy trying to figure out how to get Uncle Sam to pay for their parents health care and nursing homes so they can then inherit their assets.

    It’s safe to say that Medicare is the greatest senior asset preservation program in the history of the country, eh?

    take away Medicare and SS, and seniors won’t have anything left to give their kids…after they pay their medical bills and retirement living expenses…..except the rich of course…

    so…everyone is trying to figure out how to use Uncle Same to shield the assets of their parents – at the same time they are advocating for getting rid of Medicare and SS…..

    hmmmm….

  6. Peter Galuszka Avatar
    Peter Galuszka

    A lot more West Virginians are making money than 10 years ago? Jim,
    when was the last time you were actually IN West Virginia?

    Peter Galuszka

  7. James A. Bacon Avatar
    James A. Bacon

    Peter, I haven’t been to West Virginia in a while. You have. But do you really want to argue with the Tax Foundation data that says that there has been a 76.6% increase in the number of West Virginians making more than $200,000 a year?

  8. Peter Galuszka Avatar
    Peter Galuszka

    All three of them?

  9. Groveton Avatar
    Groveton

    Took a look at the raw data.

    WVa added 10,000 taxpayers making $200,000 or more between 1999 and 2009. From about 5,000 to about 10,000. The 2009 percentage of tax returns with more than $200,000 was 1.3% in the Mountaineer State. Per capita income in 2009 was $32,219. In 2008, 17% of WVa’s population was living below the poverty line.

    Kentucky added about 10,000 to the “over $200,000” count. They ended with 1.7%. Per capita income in 2009 was $31,883. In 2008, Ky has 17.3% of its population living below the poverty line.

    Virginia added 83,916 people making $200,000 or more over the period. Virginia ended at 4.1%. Per capita income in 2009 was $43,874. In 2008, Va had 10.2% of its population living below the poverty line.

    DC ended the period with 5.4%. Per capita income in 2009 was $66,000. In 2008, DC had 10.0% of its population living below the poverty line.

  10. Darrell Avatar
    Darrell

    “76.6% increase in the number of West Virginians making more than $200,000 a year?”

    Yeah, I see their names highlighted every week in the county paper as they get busted for running meth labs.

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