WASHINGTON - A new Congressional Budget Office report released today shows that the average federal tax rate dropped to a historic low in 2009 - the latest year full data is available - during President Obama’s first year in office. The average federal tax rate fell to 17.4 percent in 2009, down from 18 percent in 2008 and 19.9 percent in 2007. The report is the latest evidence to contradict false GOP claims about tax rates under the Obama administration. Despite the historic lows, Republicans continue to push for even deeper tax breaks for the very wealthiest households, pushing a proposal to cut the top tax rate to 25 percent, blowing a $5 trillion hole in the deficit that would lead to dramatic tax increases on middle- and lower-income households if Republicans follow through on their plans to keep their tax proposal deficit-neutral.
“However much Republicans try to perpetuate false claims, the facts speak for themselves: tax rates have never been lower than under President Obama," said Ways and Means Committee Ranking Member Sander Levin. “Yet instead of asking the very wealthiest to contribute to deficit reduction, Republicans are doubling down on the Bush tax cuts by proposing massive new tax breaks for the very wealthy."
Key point:
* The average federal tax rate fell to 17.4 percent in 2009, down from 18 percent in 2008 and 19.9 percent in 2007. That is the lowest rate on record.
Other key data from the CBO report:
* The top 1 percent saw their share of tax liabilities fall by 4.4 percent from 2007 to 2009
* The top 1 percent had an average income of more than $1.2 million, 13.4 percent of all pre-tax income
