How have federal income and payroll tax bills changed for US families in the last 30 years?




From 1988 to 1993, the average federal income tax bill for American families increased by over $1,000 in 2019 dollars. Families in the top 1%, the middle class and elderly families had increases in their federal income tax bills. But for middle-class families with children, tax bills over that time decreased.

The payroll tax changes caused the average payroll tax liability for employers and employees combined to increase by nearly $400. Payroll tax policy hasn’t changed significantly since the 1993 law.

Publication Date: 26 April 2022

Publication Site: USA Facts