Distribution of Wealth in America

Analysis of Wealth Distribution in America Based off of IRS and

Federal Reserve Board Data
Ne w Th in k Ta n k .c om

Sources
Federal Reserve Boards Survey of Consumer Finances
IRS Tax Stats
My goal is to get you to look at the facts and come to your own
conclusions
I did my best to turn thousands of documents into easy to follow
pie charts and graphs

One Pie Chart that Says it All

2%
3%
4%
8%

13%

70%

Avg Net Worth Bottom 20%

Avg Net Worth Next 20-40%
Avg Net Worth Next 40-60%
Avg Net Worth Next 60-80%
Avg Net Worth Next 80-90%
Avg Net Worth Top 10%

Average Net Worth in 2007

Avg Net Worth Bottom 25%: $4,600
Avg Net Worth Next 25 50%: $21,700
Avg Net Worth Next 50 75%: $78,900
Avg Net Worth Next 75 90%: $242,800
Avg Net Worth Top 10%: $1,606,600
Total Net Worth of the Top 400 (Forbes 2011):
$1,707,250,000,000

Increase of Net Worth of Americans

(1989 2007)
Increase of Net Worth of Citizens Over the Years
2000000
1750000
1500000
1250000
1000000
750000
500000
250000
0

1989

1992

1995

1998

2001

2004

2007

Increase of Net Worth of Americans

(1989 2007)
Year

Bottom 25%

25 - 50%

50 - 75%

75 - 90%

Top 10%

1989

$2,500

$14,000

$41,500

$128,300

$710,500

1992

$2,500

$12,900

$43,100

$119,700

$680,100

1995

$3,700

$16,200

$46,000

$134,400

$875,300

1998

$4,200

$18,900

$65,700

$195,000

$1,202,100

2001

$3,700

$20,500

$78,600

$253,200

$1,599,300

2004

$3,300

$18,900

$69,900

$244,700

$1,486,900

2007

$4,600

$21,700

$78,900

$242,800

$1,606,600

Increase of Net Worth of Americans

(1989 2007)
Bottom 25% : 45.6%
Next 25 - 50% : 35.5%
Next 50 75% : 47.4%
Next 75 90% : 47.2%
Top 10% : 55.8%

Distribution of US Total Net Worth

over the Years
Distribution of US Total Net Worth over the Years
2,000,000
1,750,000
1,500,000
1,250,000
1,000,000
750,000
500,000
250,000
0

1989

1992

1995

1998

2001

2004

2007

Change In Income Distribution Didnt

Cause this
Income Distribution US Citizens 1947

Income Distribution US Citizens 2007

6%

8%
12%
39%

11%

43%

16%

17%

24%

24%

The Amount Income Groups are

Expected to Pay in Federal Taxes
Historical Tax Rates for Different Income Groups (1960 - 2005)
80

60

40

20

0
1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

Nobody Pays What is Expected

0.140

0.400

0.270

0.130

0.300

0.203

0.120

0.200

0.135

0.110

0.100

0.068

0.100

2001

2002

2003

2004

2005

2006

2007

2008

Federal Taxation on the Top .1% (.35)

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007

Federal Taxation on the Top 1% (.35)

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007

Federal Taxation on the Top 5% (.35)

Nobody Pays What is Expected

0.180

0.160

0.130

0.135

0.120

0.098

0.090

0.080

0.065

0.045

0.040

0.033

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on the Top 5 - 10% (.30)

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on the Top 10 - 25% (.30)

1980 1984 1988 1992 1996 2000 2004 2008

Federal Taxation on the Top 25 - 50% (.25)

Nobody Pays What is Expected

0.070

0.053

0.035

0.018

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

Federal Taxation on the Bottom 50% (12.5)

2000

2002

2004

2006

2008

Net Worth Based on Numerous Factors

Net Worth White vs. Non-White

14%

Net Worth Distribution Across US

29%

86%
Net Worth of Whites
Net Worth Non-Whites

22%
Net Worth West
Net Worth South

29%

20%
Net Worth Midwest
Net Worth Northeast

Net Worth Based on Numerous Factors

Net Worth Based on Job Category

25%

1% 14%

Net Worth Based on Job Type

23%

9%
60%
Net Worth Employee
Net Worth Self-Employed
Net Worth Retired
Other

53%

15%
Net Worth Management
Net Worth Tech/Sales/Service
Other
Retired

Net Worth Based on Numerous Factors

Net Worth Homeowners vs. Renters

Net Worth Based on Education Level

8%

9%
14%
56%

21%

92%
Net Worth Homeowner
Net Worth Renter

No High School
Some College

High School
College Degree

How the Housing Collapse Effected Net

Worth
Home Equity as % of Household Net Worth

Average Value of Home Based on Net Worth

26.0
23.4

$138,400
$155,500

20.8
18.2

$757,400

$193,900

15.6
13.0

$270,800

10.4
7.8

$380,600

5.2
2.6
0
1999

2001

2003

2005

2007

2009

Bottom 20%
60 - 80%

20 - 40%
80 - 90%

40 - 60%
Top 10%

Investments Based on Net Worth

Avg Value of Retirement Accts Based on Net Worth

Avg Value of Car Based on Net Worth

$6,000

$5,600

$12,000
$24,000
$48,000

$9,100
$33,800
$14,600

$205,000
$90,400

$20,400
$25,400

Investments Based on Net Worth

Avg Value of Stocks Based on Net Worth
$6,500
$8,400

Avg Value of Bonds Based on Net Worth

$10,000

$17,700

$45,500
$19,500
$19,000

$34,200

$219,600

$62,000

$250,000

$81,000

Investments Based on Net Worth

Avg Value NonFinancial Assets Based on Net Worth

$40,000

Avg of Other Assets Based on Net Worth

$8,800

$77,200

$13,800

$139,000
$799,800

$246,300

$360,100

$50,000
$158,000
$80,000

Net Worth and Income

Average Income Increases of US Households Based on Net Worth
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
1989

1992

1995

1998

2001

2004

2007

Total Debt Based on Net Worth

Average Amount of Total Debt Based on Net Worth
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
1989

1992

1995

1998

2001

2004

2007

Total Credit Card Debt Based on Net

Worth
Average Amount Owed on Credit Cards Based on Net Worth
15000
13125
11250
9375
7500
5625
3750
1875
0
1989

1992

1995

1998

2001

2004

2007

Home Equity Loan Debt Based on Net

Worth
Avg Owed On Home Equity Loans of Households Based on Net Worth
300,000
262,500
225,000
187,500
150,000
112,500
75,000
37,500
0
1989

1992

1995

1998

2001

2004

2007