Who Really Pays Income Tax

According to the IRS Winter 2009 Statistics of Income Bulletin, taxpayers in the top 1% of Adjusted Gross Income (AGI) reported AGI of at least $388,806. This group accounted for 40% of the total income tax reported, compared to 39% in 2005. Taxpayers in the top 5% of AGI reported AGI of at least $153,542 and this group accounted for 60% of total income tax.

Executive Deferred Compensation Donated to Charity is Deductible by Employer

The IRS has privately ruled that a company can claim a tax deduction when an executive donates his deferred compensation to a charity. PLR 200905016.