How much do Black American households pay in Federal income taxes? How do those tax payments compare with payments by the rest of the nation? What could a Black American nation do with the income taxes that we pay?
These are important questions to ask today as we confront a US Government that is increasingly unable to meet fully Black America’s requirements. Also, the questions are germane as the idea (prospect) of Black Liberty in the form of nation formation is forming in Black Americans’ consciousness.
To answer these questions, we collected 2019 data from the primary source of US tax information: The US Department of the Treasury, Internal Revenue Service, Statistics of Income (SOI) Division. While SOI tax data are available by income size, they are not available by race. Therefore, we prepared a rough estimate of Black income taxes using ratios of Black Household Income to total US Household income from the US Department of Commerce, Bureau of the Census, Current Population Survey (CPS) for 2019.
Comparing Table 1 (below) with the just- mentioned source data will reveal that we collapsed certain income size categories to force consistency between SOI and the CPS statistics. Panels A and B of Table 1 indicate that we associated CPS Total Household Income with SOI Adjusted Gross Income (AGI), which are similar, but not perfectly matched, concepts. Notably, the difference between CPS Total Household Income and SOI Total AGI is only about USD 400 billion. Similarly, the difference between CPS Total Black Household Income and our rough estimate of SOI Total Black AGI is only about USD 50 billion.