Internal Revenue Service United States Department of the Treasury
Theme 4: What Is Taxed and WhyLesson 3: Income Tax Facts

 

Activity 1: Income Distribution

One reason that people believe taxes should have vertical equity is that there are wide differences between incomes in the United States. The U.S. Bureau of the Census keeps data about income distribution.

You will be taking a virtual field trip to the U.S. Census Bureau to learn more about income distribution. When you return, you will answer questions about your findings.

To start your field trip, visit U.S. Census Bureau Historical Income Tables, click the Income Inequality link, and look for the table that shows Mean Household Income Received by Each Fifth and Top 5 Percent (All Races). Then, read the questions below. Click on the letter of the response that most closely answers each question. To assess your answers, click the Check My Answers button at the bottom of the page.

  1. What was the mean household income of the lowest fifth of the population in 2012?
  • A.
  • B.
  • C.
  • D.
  1. What was the mean income of the top 5 percent of households in 2012?
  • A.
  • B.
  • C.
  • D.
  1. What was the mean income of the lowest fifth of the population in 2011?
  • A.
  • B.
  • C.
  • D.
  1. What was the difference in the mean income of the lowest fifth of the population for 2011 and 2012?
  • A.
  • B.
  • C.
  • D.
  1. What was the mean income received by the top 5 percent of households in 2011?
  • A.
  • B.
  • C.
  • D.
  1. What was the difference in the mean income of the top 5% of households in 2011 and 2010?
  • A.
  • B.
  • C.
  • D.

 

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