Breaking News: High-speed Amtrak Cascade Train Wreck derails 13 of 14 Trains Off of Track in DuPont, Washington with 77 Injuries and 6 Fatalities — Interstate HIghway 5 Southbound Lanes Closed — Videos

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The solid route is the updated line that opened Monday. Because it's straighter than the old Puget Sound route, trains could go faster See the source imageSee the source imageSee the source image

Train engineer Robert Bregent gives his expertise on the Amtrak derailment

High speed Amtrak train derails in DuPont, Washington

Alex Rozier discusses being on the train earlier in the morning

BREAKING NEWS AMTRAK TRAIN DERAILED DuPont Washington 6 Dead & 77 Injured Crashed onto Interstate

BREAKING NEWS DECEMBER 18, 2017: At least six dead and 77 injured’ after new high-speed Amtrak train derails after it ‘hit something’ on its FIRST day of service sending rail cars flying onto the interstate below.

An Amtrak train making the first-ever run along a faster new route hurtled off an overpass Monday near Tacoma and spilled some of its cars onto the highway below, killing at least six people, authorities said. The death toll was expected to rise.

Seventy-eight passengers and five crew members were aboard when the train moving at more than 80 mph derailed about 40 miles south of Seattle on a route that had raised safety concerns.

An official briefed on the investigation told The Associated Press that preliminary signs indicate that Train 501 may have struck something before going off the track. The official was not authorized to discuss the investigation publicly and spoke to on the condition of anonymity.

The Pierce County Sheriff’s Office said several vehicles on Interstate 5 were struck by falling train cars and multiple motorists were injured. No fatalities of motorists were reported. Train 501 was going south when it derailed while crossing a bridge over Interstate 5 near DuPont, Washington around 7:40am Pacific Time, causing at least one car to fall onto the freeway below.

Amtrak confirmed its train was involved but did not provide further information. ‘We are aware of an incident involving Amtrak train 501,’ the rail operator said on Twitter. ‘We will update with additional details as they become available.’

It was the first day of the new $181million high-speed Cascade service, which rerouted trains down 14 miles of updated track. The new bypass between Tacoma and DuPont is straighter, meaning that trains can go faster than they did on the windy old line.

The possibility that the wreck was caused by something on the tracks fed into concerns voiced by local officials about the risk of high-speed trains crossing busy streets.

The mayor of a town near the derailment had warned about the danger of an accident at a public meeting only two weeks ago.

A Pierce County Sheriff’s spokesman said there were multiple fatalities on the train, but declined to give an official number,

Despite the fact that the train hit several cars and trucks on the freeway below, no motorists were killed.

An estimated 77 people were injured, with some being rushed to the hospital and others treated at the scene. A spokesman for Providence St. Peter Hospital in Olympia said his hospital had received 11 patients. Chris Thomas did not know their specific conditions. Two patients were in the operating room as of early morning, one of them in serious condition, he said.

Right before the bridge, there is a sizable curve in the track and the train. The train was going 81.1 mph moments before the derailment, according to transitdocs.com, a website that maps Amtrak train locations and speeds using data from the railroad’s train tracker app. The maximum speed along the stretch of track, known as Point Defiance Bypass, is 79 mph, according to information about the project posted online by the Washington State Department of Transportation.

Local officials were wary about the new line, voicing their concerns about the high-speed trains going through curves at top speed at a meeting earlier this month.

The mayor of Lakewood, Washington, a city along the new route, predicted a deadly crash — but one involving a fast-moving train hitting a car or pedestrian at a grade-crossing. At a recent public meeting, he called on state planners to build overpass-like rail structures instead of having trains cross busy streets.

‘Come back when there is that accident and try to justify not putting in those safety enhancements,’ Anderson said, according to Seattle television station KOMO. ‘Or you can go back now and advocate for the money to do it, because this project was never needed and endangers our citizens.’

Witness describes ‘unreal’ aftermath of train derailment

Dr. Marc Siegel on injuries suffered in train derailment

[youtube-https://www.youtube.com/watch?v=m48d2OA5KTY]

Official: At least six people killed in train derailment

 

At least 6 dead, scores injured after Amtrak train plunges off bridge onto I-5

 An Amtrak train making the first-ever run along a new route hurtled off an overpass at an estimated 80 mph Monday near Tacoma and spilled some of its cars onto the highway below, killing at least six people, authorities said.

Seventy-seven passengers, six crew members and one technician were aboard when the train derailed about 40 miles south of Seattle before 8 a.m., Amtrak said. At least 50 people were hospitalized, more than a dozen with critical or serious injuries, authorities said.

The Pierce County Sheriff’s Office said five passenger vehicles and two semi trucks on Interstate 5 were struck by falling train cars and multiple motorists were injured. No fatalities of motorists were reported.

In a radio transmission immediately after the accident, the conductor can be heard saying the train was coming around a corner and was crossing a bridge that passed over Interstate 5 when it derailed.

“Emergency! Emergency! Emergency! We are on the ground!” a radio message from the train came into dispatchers, according audio obtained by Broadcastify.com. “We are on the bridge over I-5 near Nisqually… on the freeway. Need EMS [emergency services] ASAP. Looks like they are already starting to show up.”

Dispatch audio also indicated that the engineer survived with bleeding from the head and both eyes swollen shut.

“I’m still figuring that out. We’ve got cars everywhere and down onto the highway,” he tells the dispatcher, who asks if everyone is OK.

Trooper Brooke Bova with the Washington State Patrol says the train had 12 passenger cars and two engines, and all but one engine derailed. Five vehicles and two semi trucks were struck by the falling train cars on I-5 causing injuries, but no fatalities on the freeway. The extent of the injuires to those on the freeway is not known.

Chris Karnes was on the train, three or four cars back from the front.

“We had just passed the city of DuPont and maybe two or three minutes after that and we felt a little bit of wobbling and then the next thing that we knew we were being catapulted into the seats in front of us and we could hear the train derailing and metal crunching,” Chris Karns told KOMO NewsRadio. “There were people screaming — everything was dark. We had to kick out the window in order to get off the train.”

Gov. Jay Inslee has declared a State of Emergency for the disaster and has activated the State Emergency Operations Center.

In a conference call with reporters, Amtrak President and Co-CEO Richard Anderson said “Positive Train Control” was not activated on the tracks at the time of the derailment. Positive Train Control is a technology that automatically slows down, and eventually stops, a train if it senses the train is going too fast and could derail or get in an accident.

‘Prepared for the Worst and Hoped for the Best’

Motorists said they drove up to find a train car hanging off the bridge, and dozens of Amtrak passengers stranding along the freeway. Motorists on both sides of the freeway began to help them.

Dr. Nathan Selden, a neurosurgeon at the Oregon Health & Science University in Portland, said he and his son drove through the accident scene while traveling north to visit Seattle. The doctor asked if he could help and was ushered to a medical triage tent in the highway median.

The most seriously injured had already been whisked away, but the patients he helped appeared to have open head wounds and skull, pelvic or leg fractures, as well as small cuts and neck sprains, he said.

He called it a miracle that an infant child he saw from the scene appeared completely unharmed.

Daniel Konzelman, 24, was driving parallel to the train on his way to work as an accountant in Olympia. He was about 30 seconds ahead of the train on the freeway when he saw it derail.

Konzelman, who was driving with a friend, told the Associtaed Press he pulled off the freeway and then ran down along the tracks and over the bridge to get to the scene. They saw three cars and a semi-truck on the freeway that had been damaged by the derailment. There were train cars with their roofs ripped off, or that were tipped upside down, on both sides of the track or turned sideways on the bridge.

They climbed into train cars and found people hurt – some pinned underneath the train, others who appeared to be dead, he said. If they were mobile and seemed stable, he helped them climb out. If they appeared seriously hurt, he tried to comfort them by talking to them.

“I just wanted to help people because I would want people to help me,” he said. “I’m an Eagle Scout. I have a lot of first-aid training and emergency response training.”

They stayed for nearly two hours before hitting the road again.

“I prepared for the worst and hoped for the best. I saw a little bit of both,” he said.

Southbound I-5 To Remain Closed For Extened Period

All southbound lanes of Interstate 5 are closed south of Joint Base Lewis-McChord and are expected to remain closed for the rest of the day, according to the State Patrol. Troopers have set up a number of detours, including one allowing drivers to cut through Joint Base Lewis-McChord.

“We have a detour that’s going through Center Drive through the base,” Trooper Brooke Bova said. “JBLM is being amazing and they’re really helping us get traffic through there but please expect congestion through that area. That is one of our biggest detours.”

Other detours take drivers around into Kitsap County or far into eastern Pierce and Thurston County.

High-speed Amtrak train ‘hit something’ before derailing on Washington State line – killing at least six and injuring 77 – as it’s revealed high-tech system designed to PREVENT accident was NOT enabled

  • An Amtrak train derailed near DuPont, Washington around 7:40am Monday, killing at least six and injuring 77
  • Seventy-eight passengers were on board, in addition to five crew members 
  • The train derailed while crossing a bridge over Interstate 5, causing one car to crash onto the freeway below 
  • Five cars and two semi-trucks were struck by the falling car, but no motorists were killed
  • It was the first day of a new high-speed service linking Seattle, Washington and Portland, Oregon
  • A local mayor voiced his fear about the new train causing a deadly accident earlier this month 
  • An anonymous official said it appears the train may have struck something right before the derailment 
  • High-tech Positive Train Control (PTC) system that each of the brand Amtrak Cascade engines are equipped with was not switched on
  • The NTSB is sending a 20-person team to DuPont to investigate the derailment 
  • Records show that the train was going 81 mph before it derailed, when it was supposed to only be going 79 
  • The president of Amtrak said the train was not equipped with positive train control, which automatically slows a train if it’s going too fast  
  • President Trump blamed the crash on ‘crumbling infrastructure’ in a tweet 

An Amtrak train making the first-ever run along a faster new route hurtled off an overpass Monday near Tacoma and spilled some of its cars onto the highway below, killing at least six people, authorities said. The death toll was expected to rise.

Seventy-eight passengers and five crew members were aboard when the train moving at more than 80 mph derailed about 40 miles south of Seattle on a route that had raised safety concerns.

An official briefed on the investigation told The Associated Press that preliminary signs indicate that Train 501 may have struck something before going off the track. The official was not authorized to discuss the investigation publicly and spoke on the condition of anonymity.

In addition, the new high-tech Positive Train Control (PTC) system that each of the brand Amtrak Cascade engines are equipped with was not switched on.

The PTC computer system which prevents a train from exceeding a speed limit and can detect objects or collisions ahead is fitted to all the new Charger locomotives on the Seattle to Portland line.

However, according to CNN, at a conference call today, Amtrak President and Co-CEO Richard Anderson said Positive Train Control was not activated on the tracks at the time.

The Pierce County Sheriff’s Office said thirteen of the train’s fourteen cars derailed. One of them crashed onto freeway below, hitting five cars and two semi-trucks. Multiple motorists were injured, but none killed. Police have not given an official death count, but the Seattle Times says it’s at least six.

Seventy-seven people have been hospitalized, with hospital officials saying at least two people are in critical condition and 11 are seriously injured.

Scroll down for video 

An Amtrak train derailed near DuPont, Washington around 7:40am Monday - causing multiple injuries and fatalities 

An Amtrak train derailed near DuPont, Washington around 7:40am Monday – causing multiple injuries and fatalities

The train derailed while crossing a bridge over Interstate 5, causing at least one car to crash onto the freeway below

The train derailed while crossing a bridge over Interstate 5, causing at least one car to crash onto the freeway below

Thirteen of the 14 cars on the train derailed in the early Monday morning incident 

In addition to the six fatalities, seventy-seven people were injured - including both passengers and motorists  

In addition to the six fatalities, seventy-seven people were injured – including both passengers and motorists

The train set off from Seattle at 6am and planned to get into Portland, Oregon a little more than three hours later

The train set off from Seattle at 6am and planned to get into Portland, Oregon a little more than three hours later

The derailment happened near the town of DuPont, Washington, on an updated set of train line 

Monday was the first day of the updated Cascade Line service between Seattle and Portland  

Monday was the first day of the updated Cascade Line service between Seattle and Portland

The train was headed south towards Portland, Oregon at the time of the derailment. Passengers are seen disembarking the derailed train 

Seventy-eight passengers were on board at the time, in addition to five crew. The train can fit around 250 people

Train 501 was going south to Portland, Oregon when it derailed while crossing a bridge over Interstate 5 near DuPont, Washington around 7:40am Pacific Time, causing at least one car to fall onto the freeway below.

The train was making the inaugural run on the new Cascade route as part of a $180.7 million project designed to speed up service by removing passenger trains from a route along Puget Sound that’s bogged down by curves, single-track tunnels and freight traffic.

WHAT IS POSITIVE TRAIN CONTROL?

The brand new Amtrak Cascade trains are pulled by the brand new Charger locomotive as part of the $181m infrastructure investment.

Each of the Charger engines is equipped with the high tech Positive Train Control (PTC) which enables trains to be automatically or remotely stopped when trouble is found on the line.

The PTC for Train 501 was not due to be switched on until next year.

 PTC is a computer program which enables a the system to monitor the train using GPS and sensors on trains that are tripped along the tracks.

The program operates simultaneously with the running train and slows a locomotive if it exceeds its speed limit and will trip a red light if a collision is imminent or an obstacle has been seen or detected.

The Amtrak schedule called for the train to leave Seattle around 6am and arrive in Portland about 3 1/2 hours later.

The new route includes a bypass built on an existing inland rail line that runs along Interstate 5 from Tacoma to DuPont, near where Train 501 derailed. Track testing was completed in January and February in advance of Monday’s launch, according to the Washington State Department of Transportation.

The possibility that the wreck was caused by something on the tracks fed into concerns voiced by local officials about the risk of high-speed trains crossing busy streets. The mayor of a town near the derailment had warned about the danger of an accident at a public meeting only two weeks ago.

Right before the bridge, there is a sizable curve in the track and the train.  The train was going 81.1 mph moments before the derailment, according to transitdocs.com, a website that maps Amtrak train locations and speeds using data from the railroad’s train tracker app.

The maximum speed along the stretch of track, known as Point Defiance Bypass, is 79 mph, according to information about the project posted online by the Washington State Department of Transportation.

The president of Amtrak revealed at an afternoon press conference that the new train was not equipped with positive train control, a mechanism that automatically slows the train if it starts going too fast. This is despite the fact that the technology was supposed to be added to the trains as part of the revamp.

DESPERATE EMERGENCY CALL FROM CREW OF AMTRAK TRAIN

The call made by a member of the crew of the Amtrak train in the seconds after the deadly crash has been released.

The call is believed to have been made by the engineer.

CREW OF TRAIN: ‘Amtrak 501 emergency, emergency, emergency… we are on the ground (inaudible) We are on the bridge (inaudible) …on the freeway.’

‘We need EMS ASAP. Looks like they are already starting to show up.

OPERATOR: ‘Hey guys what happened?’

CREW OF TRAIN: ‘We were coming round the corner to take the bridge on the I5 and right there on the Nissqually we were on the ground.’

OPERATOR: ‘Are you… is everybody okay?’

CREW OF TRAIN: ‘I am still figuring that out… we’ve got cars everywhere and down onto the highway.’

Local officials were wary about the new line, voicing their concerns about the high-speed trains going through curves at top speed at a meeting earlier this month.

The mayor of Lakewood, Washington, a city along the new route, predicted a deadly crash — but one involving a fast-moving train hitting a car or pedestrian at a grade-crossing. At a recent public meeting, he called on state planners to build overpass-like rail structures instead of having trains cross busy streets.

‘Come back when there is that accident and try to justify not putting in those safety enhancements,’ Anderson said, according to Seattle television station KOMO. ‘Or you can go back now and advocate for the money to do it, because this project was never needed and endangers our citizens.’

Two semi-trucks were damaged when one of the train cars fell onto the freeway below 

Five cars were damaged when the train car fell onto the freeway - but no motorist was killed 

A worker walks the tracks at the scene of a Amtrak train derailment on December 18, 2017 in DuPont, Washington

All southbound lands on I-5 have been shut down while local officials investigate 

All southbound lands on I-5 have been shut down while local officials investigate

A train car's wheels are seen detached from the car on Interstate 5  

A train car’s wheels are seen detached from the car on Interstate 5

Firefighters are seen looking for more survivors on Monday 

A look at some of the tools firefighters brought to free survivors on the train 

A look at some of the tools firefighters brought to free survivors on the train

It's still unclear what caused the train to derail Monday morning. The NTSB will be investigating 

It’s still unclear what caused the train to derail Monday morning. The NTSB will be investigating

The train was traveling on an updated set of tracks that run between Tacoma and DuPont, Washington 

The train was traveling on an updated set of tracks that run between Tacoma and DuPont, Washington

The NTSB will be looking to get the black box fro the train, which will tell how fast the train was traveling when it derailed 

No motorists were killed in the derailment, despite the fact that a car fell on the road below 

No motorists were killed in the derailment, despite the fact that a car fell on the road below

The NTSB is sending a 20 person team to investigate the derailment. Board member Bella Dinh-Zarr addresses reporters about the derailment at a press conference in Washington, DC on Monday 

A look at the new locomotives for the Cascade line

Today was the first day of the new multi-million Amtrak Cascades train service daily along the Portland-Seattle corridor.

The more direct route diverged from the shared track which operated with freight trains.

The project was known as the Point Defiance Bypass.

Avoiding a more scene route along the area’s iconic Puget Sound, the new high speed line is designed to take 10 minutes off the travel time and travel at up to 80mph.

Amtrak issued a press released last week to say that using this route would allow for two more daily round-trips between Seattle and Portland.

It would also help trains avoid traveling around tight corners and tunnels.

The Amtrak/Cascade trains are pulled by a state-of-the art locomotive known as a ‘Charger’.

Weighing 42,000 pounds and able to produce 4,400-horsepower they new, quieter and faster engines have been testing for the last month.

They are equipped with positive train control systems which automatically stop trains when troubled is detected. However, these are not due to be activate till 2018.

The Washington State Department of Transportation said that at the moment it has no theories as to what caused the derailment.

 The NTSB will be investigating the cause of the crash, but most won’t be on the scene for several hours because they’re flying commercial. The 20-person go team’s  flight is scheduled for 6:55pm and its a five-hour flight.

When they finally get to the scene, the investigators will obtain the black box which will show how fast the train was going when it derailed and whether the engineer braked when they needed to. They will also look at the condition of the tracks and question the train crew.

Mary Schiavo, a transportation analyst for CNN, hinted that the curve in the road might be to blame for the derailment.

‘This train was about to enter or was entering a curve and while they had to modify the tracks and test the tracks – and all of this work was done at the beginning of December – local officials in Washington were highly critical of sending a train at this speed through his area…they specifically warned that it needed to slow down at the curves in the track.

‘I always like to say, whether its a train crash or a plane crash, the laws of physics are the only laws you can’t break. And while they tested it…testing as opposed to running a full-sized, fully-loaded train over the track changes the physics. It changes the dynamics of the forces that you have in that curve.

‘It’s like racing a motorcycle. As you approached that curve, the centrifugal forces on the train change dramatically and I bet the NTSB is gonna pay a lot of attention to the topography and whether the train was entering a curve,’ Schiavo said.

Audio has been released of the engineer talking to emergency dispatchers immediately after the crash.

‘Amtrak 501 emergency, emergency, emergency, we are on the ground!’ the engineer is heard saying.

‘Need EMS ASAP. It looks like they are already starting to show up,’ the engineer continues.

‘He guys, what happened?’ a dispatcher asks.

‘We were coming around the corner to take the bridge over 1-5 there right north of Nisqually and we went on the ground,’ the engineer responds.

‘Ok, is everybody ok?’ the dispatcher asks.

‘I’m still figuring that out,’ the engineer responds. ‘We’ve got cars everywhere and down onto the highway.’

Passenger Chris Karnes was on his way to do some Christmas shipping with his boyfriend with the derailment happened.

He told KIRO that he was on the third for fourth car, and said the emergency doors were not functioning so they had to kick out the train windows to escape.

Photos from the scene show three to four cars rolled off the track and into the woods on the side of the road.

‘We had just passed the city of DuPont and it seemed like we were going around a curve,’ Karnes said. ‘All of a sudden, we felt this rocking and creaking noise, and it felt like we were heading down a hill. The next thing we know, we’re being slammed into the front of our seats, windows are breaking, we stop, and there’s water gushing out of the train. People were screaming.’

‘The tracks for this line were supposed to be upgraded to be able to handle higher speeds,’ he continued. ‘I’m not sure what happened at this juncture.’

Maria Hetland was driving to work on the northbound lanes when traffic slowed and she noticed the crash.

‘As we were coming up the hill I rolled my window down and saw the train,’ she told the Seattle Times. ‘It was awful.’

Hetland said she could see people walking around the roadway near the derailment, and people sitting on the side of the freeway wrapped in blankets.

Many rail enthusiasts were on the train to make the first trip of the new high-speed service

Amtrak derailment onto I-5 in Washington State on Monday

Amtrak derailment onto I-5 in Washington State on Monday

Numerous paramedics were seen at the scene on Monday 

Numerous paramedics were seen at the scene on Monday

Above is the train tracks where the train derailed Monday morning 

Above is the train tracks where the train derailed Monday morning

Konzelman, who was driving with a friend, said he pulled off the freeway and then ran down along the tracks and over the bridge to get to the scene. They saw three cars and a semi-truck on the freeway that had been damaged by the derailment. There were train cars with their roofs ripped off, or that were tipped upside down, on both sides of the track or turned sideways on the bridge.

They climbed into train cars and found people hurt — some pinned underneath the train, others who appeared to be dead, he said. If they were mobile and seemed stable, he helped them climb out. If they appeared seriously hurt, he tried to comfort them by talking to them.

‘I just wanted to help people because I would want people to help me,’ he said. ‘I’m an Eagle Scout. I have a lot of first-aid training and emergency response training.’

They stayed for nearly two hours before hitting the road again.

‘I prepared for the worst and hoped for the best. I saw a little bit of both,’ he said.

Alex Rozier, a King TV reporter, told NBC News that he got off the train about 10 minutes before the derailment, after taking footage early on in the inaugural trip.

He said there were many people on the train for its first trip, including rail enthusiasts. Passengers were given commemorative lanyards for the journey.

The new service is supposed to make the journey between Portland and Seattle in 3 hours and 20 minutes, about 10 minutes faster than previous services.

Part of the reason why the new route is faster is because it diverges from the main line on a 14-mile bypass between DuPont and Tacoma.

The new track is a straighter line so the train can go faster, while the old track was windy and made the journey slower.

The bypass already existed but had the tracks needed to be updated for high-speed trains, which heat up the metal on the tracks more significantly

Monday’s inaugural trip was the culmination of the $181million project, that also included construction of a new train station at Tacoma.

Amtrak service south of Seattle on the line is temporarily suspended. Service is continuing to the north and east of the crash.

The derailment has also caused traffic chaos on Interstate 5, with all southbound lanes shut down and just two lanes getting by northbound.

The State Police said that the southbound lanes will at least be closed down for the rest of the day.

They are asking that people stay off I-5 if they don’t need to use it.

The freeway is a heavily trafficked road, with even more Washingtonians expected to be on the road this week to do Christmas shopping in sales-tax-free Oregon.

Family of victims are being asked to report to the DuPont City Hall to be reunited with their loved ones. They are being told not to come to the scene.

President Trump used the deadly derailment to call for more infrastructure spending in a tweet sent about three hours after the accident. He said the wreck, on a newly completed bypass, shows ‘more than ever why our soon to be submitted infrastructure plan must be approved quickly.’

Ten minutes later, he expressed his sympathies for those who were killed.

‘My thoughts and prayers are with everyone involved in the train accident in DuPont, Washington. Thank you to all of our wonderful First Responders who are on the scene. We are currently monitoring here at the White house, he added.

http://www.dailymail.co.uk/news/article-5191431/Amtrak-train-derails-highway-bridge-Washington-state-media.html#ixzz51emnm2C3

 

 

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Story 1: Economic Illiterate Obama On Life’s Lottery Winners — Wealth, Job and Income Creators Pay  Over 70% of Federal Income Taxes — Obama Wants More — Greedy Progressive Politicians Use Government To Steal Other People’s Money — Videos

“But how is this legal plunder to be identified?

Quite simply. See if the law takes from some persons what belongs to them and gives it to other persons to whom it does not belong.

See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.”

“The state is that great fiction by which everyone tries to live at the expense of everyone else.”

~Frédéric Bastiat

Obama Dismisses Wealthy Americans As ‘Society’s Lottery Winners’

Obama: Tax Hedge Funds More

EAT THE RICH!

IDIOTS – Who pays the most taxes – Franklin vs Marx

Why the Rich Never Pay Taxes

Why The Rich Pay Lower Taxes

Summary of Latest Federal Income Tax Data

December 22, 2014
By Kyle Pomerleau,Andrew Lundeen

The Internal Revenue Service has recently released new data on individual income taxes for calendar year 2012, showing the number of taxpayers, adjusted gross income, and income tax shares by income percentiles.[1]

The data demonstrates that the U.S. individual income tax continues to be very progressive, borne mainly by the highest income earners.

  • In 2012, 136.1 million taxpayers reported earning $9.04 trillion in adjusted gross income and paid $1.1 trillion in income taxes.
  • All income groups increased their income and taxes paid over the previous year.
  • The top 1 percent of taxpayers earned their largest share of income since 2007 at 21.9 percent of total AGI and paid their largest share of the income tax burden since the same year at 38.1 percent of total income taxes.
  • In 2012, the top 50 percent of all taxpayers (68 million filers) paid 97.2 percent of all income taxes while the bottom 50 percent paid the remaining 2.8 percent.
  • The top 1 percent (1.3 million filers) paid a greater share of income taxes (38.1 percent) than the bottom 90 percent (122.4 million filers) combined (29.8 percent).
  • The top 1 percent of taxpayers paid a higher effective income tax rate than any other group at 22.8 percent, which is nearly 7 times higher than taxpayers in the bottom 50 percent (3.28 percent).

Taxpayers Reported $9.04 Trillion in Adjusted Gross Income and Paid $1.19 Trillion in Income Taxes in 2012

Taxpayers reported $9.04 trillion in adjusted gross income (AGI) on 136.1 million tax returns in 2012. This represents $725 billion in additional income over 2011 on 500,000 fewer tax returns. While the majority of the income gain went to the top 5 percent of taxpayers (those making $175,817 or more), every income group experienced an increase in income in 2012. Due to the increase in incomes, taxes paid increased by $142 billion to $1.185 trillion in 2012. Taxes paid increased for all income groups.

The share of income earned by the top 1 percent increased to 21.9 percent of total AGI, the highest level since the peak year of 2007 (22.9 percent of total AGI). The share of the income tax burden for the top 1 percent increased to 38.1 percent from 35.1 percent in 2011, also the highest level since the peak in 2007 (39.8 percent).

Table 1. Summary of Federal Income Tax Data, 2012

Number of Returns*

AGI ($ millions)

Income Taxes Paid ($ millions)

Group’s Share of Total AGI (IRS)

Group’s Share of Income Taxes

Income Split Point

Average Tax Rate

All Taxpayers

136,080,353

9,041,744

1,184,978

100.0%

100.0%

Top 1%

1,360,804

1,976,738

451,328

21.9%

38.1%

> $434,682

22.8%

1-5%

5,443,214

1,354,206

247,215

15.0%

20.9%

18.3%

Top 5%

6,804,018

3,330,944

698,543

36.8%

58.9%

> $175,817

21.0%

5-10%

6,804,017

996,955

132,902

11.0%

11.2%

13.3%

Top 10%

13,608,035

4,327,899

831,445

47.9%

70.2%

> $125,195

19.2%

10-25%

20,412,053

1,933,778

192,601

21.4%

16.3%

10.0%

Top 25%

34,020,088

6,261,677

1,024,046

69.3%

86.4%

> $73,354

16.4%

25-50%

34,020,089

1,776,123

128,017

19.6%

10.8%

7.2%

Top 50%

68,040,177

8,037,800

1,152,063

88.9%

97.2%

> $36,055

14.3%

Bottom 50%

68,040,177

1,003,944

32,915

11.1%

2.8%

< $36,055

3.3%

*Does not include dependent filers.

Top 50 Percent of All Taxpayers Paid 97.2 Percent of All Federal Income Taxes; Top 1 Percent Paid 38.1 Percent; and Bottom 90 Percent Paid 29.7 Percent of All Federal Income Taxes

Figure 1 shows the distribution of AGI and income taxes paid by income percentiles in 2012. In 2012, the bottom 50 percent of taxpayers (those with AGIs below $36,055) earned 11.1 percent of total AGI. This group of taxpayers paid approximately $33 billion in taxes, or 2.8 percent of all income taxes in 2012.

In contrast, the top 1 percent of all taxpayers (taxpayers with AGIs of $434,682 and above), earned 21.9 percent of all AGI in 2012, but paid 38.1 percent of all federal income taxes.

Combined, the top 1 percent of taxpayers (those with AGIs above $434,682) accounted for more income taxes paid than the bottom 90 percent (those with AGIs below $125,195) combined. In 2012, the top 1 percent of taxpayers paid $451 billion in income taxes, or 38.1 percent of all income taxes while the bottom 90 percent paid $353 billion in income taxes, or 29.8 percent of all income taxes paid.

The Top 1 Percent’s Effective Tax Rate Is Nearly Seven Times Higher than the Bottom 50 percent’s

The 2012 IRS data shows that taxpayers with higher incomes pay much higher effective income tax rates than lower-income taxpayers.

The bottom 50 percent of taxpayers (taxpayers with AGIs under $36,055) faced an average effective income tax rate of 3.3 percent. As taxpayer AGI increases, the IRS data shows that average income tax rates rise. For example, taxpayers with AGIs between the 10th and 5th percentile ($125,195 and $175,817) pay an average effective rate of 13.3 percent—four times the rate paid by those in the bottom 50 percent.

The top 1 percent of taxpayers (AGI of $434,682 and higher) paid the highest effective income tax rate at 22.8 percent, 6.9 times the rate faced by the bottom 50 percent of taxpayers. The top 1 percent’s average effective tax rate for 2012 of 22.8 percent was slightly lower than that of 2011 (23.5 percent).

Taxpayers at the very top of the income distribution, the top 0.1 percent, which includes taxpayers with incomes over $2.2 million, actually paid a slightly lower income tax rate than the top 1 percent (21.7 percent versus 22.8 percent). This is due to the fact that very high income taxpayers are more likely to report a greater share of their income as taxable capital gains income. This leads to a slightly lower effective tax rate because capital gains and dividends income faces a lower top income tax rate (23.8 percent) than wage and business income (39.6 percent). It is important to note, however, that capital gains taxes at the individual level are the second layer of tax after the corporate income tax (which is 35 percent).

Appendix

 Table 2. Number of Federal Individual Income Tax Returns Filed 1980–2012 (In thousands)
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
1980 93,239 932 4,662 4,662 9,324 13,986 23,310 23,310 46,619 46,619
1981 94,587 946 4,729 4,729 9,459 14,188 23,647 23,647 47,293 47,293
1982 94,426 944 4,721 4,721 9,443 14,164 23,607 23,607 47,213 47,213
1983 95,331 953 4,767 4,767 9,533 14,300 23,833 23,833 47,665 47,665
1984 98,436 984 4,922 4,922 9,844 14,765 24,609 24,609 49,218 49,219
1985 100,625 1,006 5,031 5,031 10,063 15,094 25,156 25,156 50,313 50,313
1986 102,088 1,021 5,104 5,104 10,209 15,313 25,522 25,522 51,044 51,044
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 106,155 1,062 5,308 5,308 10,615 15,923 26,539 26,539 53,077 53,077
1988 108,873 1,089 5,444 5,444 10,887 16,331 27,218 27,218 54,436 54,436
1989 111,313 1,113 5,566 5,566 11,131 16,697 27,828 27,828 55,656 55,656
1990 112,812 1,128 5,641 5,641 11,281 16,922 28,203 28,203 56,406 56,406
1991 113,804 1,138 5,690 5,690 11,380 17,071 28,451 28,451 56,902 56,902
1992 112,653 1,127 5,633 5,633 11,265 16,898 28,163 28,163 56,326 56,326
1993 113,681 1,137 5,684 5,684 11,368 17,052 28,420 28,420 56,841 56,841
1994 114,990 1,150 5,749 5,749 11,499 17,248 28,747 28,747 57,495 57,495
1995 117,274 1,173 5,864 5,864 11,727 17,591 29,319 29,319 58,637 58,637
1996 119,442 1,194 5,972 5,972 11,944 17,916 29,860 29,860 59,721 59,721
1997 121,503 1,215 6,075 6,075 12,150 18,225 30,376 30,376 60,752 60,752
1998 123,776 1,238 6,189 6,189 12,378 18,566 30,944 30,944 61,888 61,888
1999 126,009 1,260 6,300 6,300 12,601 18,901 31,502 31,502 63,004 63,004
2000 128,227 1,282 6,411 6,411 12,823 19,234 32,057 32,057 64,114 64,114
IRS changed methodology, so data above and below this line not strictly comparable
2001 119,371 119 1,194 5,969 5,969 11,937 17,906 29,843 29,843 59,685 59,685
2002 119,851 120 1,199 5,993 5,993 11,985 17,978 29,963 29,963 59,925 59,925
2003 120,759 121 1,208 6,038 6,038 12,076 18,114 30,190 30,190 60,379 60,379
2004 122,510 123 1,225 6,125 6,125 12,251 18,376 30,627 30,627 61,255 61,255
2005 124,673 125 1,247 6,234 6,234 12,467 18,701 31,168 31,168 62,337 62,337
2006 128,441 128 1,284 6,422 6,422 12,844 19,266 32,110 32,110 64,221 64,221
2007 132,655 133 1,327 6,633 6,633 13,265 19,898 33,164 33,164 66,327 66,327
2008 132,892 133 1,329 6,645 6,645 13,289 19,934 33,223 33,223 66,446 66,446
2009 132,620 133 1,326 6,631 6,631 13,262 19,893 33,155 33,155 66,310 66,310
2010 135,033 135 1,350 6,752 6,752 13,503 20,255 33,758 33,758 67,517 67,517
2011 136,586 137 1,366 6,829 6,829 13,659 20,488 34,146 34,146 68,293 68,293
2012 136,080 136 1,361 6,804 6,804 13,608 20,412 34,020 34,020 68,040 68,040
Source: Internal Revenue Service.
Table 3. Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980–2012 ($Billions)
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
1980 $1,627 $138 $342 $181 $523 $400 $922 $417 $1,339 $288
1981 $1,791 $149 $372 $201 $573 $442 $1,015 $458 $1,473 $318
1982 $1,876 $167 $398 $207 $605 $460 $1,065 $478 $1,544 $332
1983 $1,970 $183 $428 $217 $646 $481 $1,127 $498 $1,625 $344
1984 $2,173 $210 $482 $240 $723 $528 $1,251 $543 $1,794 $379
1985 $2,344 $235 $531 $260 $791 $567 $1,359 $580 $1,939 $405
1986 $2,524 $285 $608 $278 $887 $604 $1,490 $613 $2,104 $421
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $2,814 $347 $722 $316 $1,038 $671 $1,709 $664 $2,374 $440
1988 $3,124 $474 $891 $342 $1,233 $718 $1,951 $707 $2,658 $466
1989 $3,299 $468 $918 $368 $1,287 $768 $2,054 $751 $2,805 $494
1990 $3,451 $483 $953 $385 $1,338 $806 $2,144 $788 $2,933 $519
1991 $3,516 $457 $943 $400 $1,343 $832 $2,175 $809 $2,984 $532
1992 $3,681 $524 $1,031 $413 $1,444 $856 $2,299 $832 $3,131 $549
1993 $3,776 $521 $1,048 $426 $1,474 $883 $2,358 $854 $3,212 $563
1994 $3,961 $547 $1,103 $449 $1,552 $929 $2,481 $890 $3,371 $590
1995 $4,245 $620 $1,223 $482 $1,705 $985 $2,690 $938 $3,628 $617
1996 $4,591 $737 $1,394 $515 $1,909 $1,043 $2,953 $992 $3,944 $646
1997 $5,023 $873 $1,597 $554 $2,151 $1,116 $3,268 $1,060 $4,328 $695
1998 $5,469 $1,010 $1,797 $597 $2,394 $1,196 $3,590 $1,132 $4,721 $748
1999 $5,909 $1,153 $2,012 $641 $2,653 $1,274 $3,927 $1,199 $5,126 $783
2000 $6,424 $1,337 $2,267 $688 $2,955 $1,358 $4,314 $1,276 $5,590 $834
IRS changed methodology, so data above and below this line not strictly comparable
2001 $6,116 $492 $1,065 $1,934 $666 $2,600 $1,334 $3,933 $1,302 $5,235 $881
2002 $5,982 $421 $960 $1,812 $660 $2,472 $1,339 $3,812 $1,303 $5,115 $867
2003 $6,157 $466 $1,030 $1,908 $679 $2,587 $1,375 $3,962 $1,325 $5,287 $870
2004 $6,735 $615 $1,279 $2,243 $725 $2,968 $1,455 $4,423 $1,403 $5,826 $908
2005 $7,366 $784 $1,561 $2,623 $778 $3,401 $1,540 $4,940 $1,473 $6,413 $953
2006 $7,970 $895 $1,761 $2,918 $841 $3,760 $1,652 $5,412 $1,568 $6,980 $990
2007 $8,622 $1,030 $1,971 $3,223 $905 $4,128 $1,770 $5,898 $1,673 $7,571 $1,051
2008 $8,206 $826 $1,657 $2,868 $905 $3,773 $1,782 $5,555 $1,673 $7,228 $978
2009 $7,579 $602 $1,305 $2,439 $878 $3,317 $1,740 $5,058 $1,620 $6,678 $900
2010 $8,040 $743 $1,517 $2,716 $915 $3,631 $1,800 $5,431 $1,665 $7,096 $944
2011 $8,317 $737 $1,556 $2,819 $956 $3,775 $1,866 $5,641 $1,716 $7,357 $961
2012 $9,042 $1,017 $1,977 $3,331 $997 $4,328 $1,934 $6,262 $1,776 $8,038 $1,004
Source: Internal Revenue Service.
 Table 4. Total Income Tax after Credits, 1980–2012 ($Billions)
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
1980 $249 $47 $92 $31 $123 $59 $182 $50 $232 $18
1981 $282 $50 $99 $36 $135 $69 $204 $57 $261 $21
1982 $276 $53 $100 $34 $134 $66 $200 $56 $256 $20
1983 $272 $55 $101 $34 $135 $64 $199 $54 $252 $19
1984 $297 $63 $113 $37 $150 $68 $219 $57 $276 $22
1985 $322 $70 $125 $41 $166 $73 $238 $60 $299 $23
1986 $367 $94 $156 $44 $201 $78 $279 $64 $343 $24
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $369 $92 $160 $46 $205 $79 $284 $63 $347 $22
1988 $413 $114 $188 $48 $236 $85 $321 $68 $389 $24
1989 $433 $109 $190 $51 $241 $93 $334 $73 $408 $25
1990 $447 $112 $195 $52 $248 $97 $344 $77 $421 $26
1991 $448 $111 $194 $56 $250 $96 $347 $77 $424 $25
1992 $476 $131 $218 $58 $276 $97 $374 $78 $452 $24
1993 $503 $146 $238 $60 $298 $101 $399 $80 $479 $24
1994 $535 $154 $254 $64 $318 $108 $425 $84 $509 $25
1995 $588 $178 $288 $70 $357 $115 $473 $88 $561 $27
1996 $658 $213 $335 $76 $411 $124 $535 $95 $630 $28
1997 $727 $241 $377 $82 $460 $134 $594 $102 $696 $31
1998 $788 $274 $425 $88 $513 $139 $652 $103 $755 $33
1999 $877 $317 $486 $97 $583 $150 $733 $109 $842 $35
2000 $981 $367 $554 $106 $660 $164 $824 $118 $942 $38
IRS changed methodology, so data above and below this line not strictly comparable
2001 $885 $139 $294 $462 $101 $564 $158 $722 $120 $842 $43
2002 $794 $120 $263 $420 $93 $513 $143 $657 $104 $761 $33
2003 $746 $115 $251 $399 $85 $484 $133 $617 $98 $715 $30
2004 $829 $142 $301 $467 $91 $558 $137 $695 $102 $797 $32
2005 $932 $176 $361 $549 $98 $647 $145 $793 $106 $898 $33
2006 $1,020 $196 $402 $607 $108 $715 $157 $872 $113 $986 $35
2007 $1,112 $221 $443 $666 $117 $783 $170 $953 $122 $1,075 $37
2008 $1,029 $187 $386 $597 $115 $712 $168 $880 $117 $997 $32
2009 $863 $146 $314 $502 $101 $604 $146 $749 $93 $842 $21
2010 $949 $170 $355 $561 $110 $670 $156 $827 $100 $927 $22
2011 $1,043 $168 $366 $589 $123 $712 $181 $893 $120 $1,012 $30
2012 $1,185 $220 $451 $699 $133 $831 $193 $1,024 $128 $1,152 $33
Source: Internal Revenue Service.
Table 5. Adjusted Gross Income Shares, 1980–2012 (percent of total AGI earned by each group)
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
1980 100% 8.46% 21.01% 11.12% 32.13% 24.57% 56.70% 25.62% 82.32% 17.68%
1981 100% 8.30% 20.78% 11.20% 31.98% 24.69% 56.67% 25.59% 82.25% 17.75%
1982 100% 8.91% 21.23% 11.03% 32.26% 24.53% 56.79% 25.50% 82.29% 17.71%
1983 100% 9.29% 21.74% 11.04% 32.78% 24.44% 57.22% 25.30% 82.52% 17.48%
1984 100% 9.66% 22.19% 11.06% 33.25% 24.31% 57.56% 25.00% 82.56% 17.44%
1985 100% 10.03% 22.67% 11.10% 33.77% 24.21% 57.97% 24.77% 82.74% 17.26%
1986 100% 11.30% 24.11% 11.02% 35.12% 23.92% 59.04% 24.30% 83.34% 16.66%
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 100% 12.32% 25.67% 11.23% 36.90% 23.85% 60.75% 23.62% 84.37% 15.63%
1988 100% 15.16% 28.51% 10.94% 39.45% 22.99% 62.44% 22.63% 85.07% 14.93%
1989 100% 14.19% 27.84% 11.16% 39.00% 23.28% 62.28% 22.76% 85.04% 14.96%
1990 100% 14.00% 27.62% 11.15% 38.77% 23.36% 62.13% 22.84% 84.97% 15.03%
1991 100% 12.99% 26.83% 11.37% 38.20% 23.65% 61.85% 23.01% 84.87% 15.13%
1992 100% 14.23% 28.01% 11.21% 39.23% 23.25% 62.47% 22.61% 85.08% 14.92%
1993 100% 13.79% 27.76% 11.29% 39.05% 23.40% 62.45% 22.63% 85.08% 14.92%
1994 100% 13.80% 27.85% 11.34% 39.19% 23.45% 62.64% 22.48% 85.11% 14.89%
1995 100% 14.60% 28.81% 11.35% 40.16% 23.21% 63.37% 22.09% 85.46% 14.54%
1996 100% 16.04% 30.36% 11.23% 41.59% 22.73% 64.32% 21.60% 85.92% 14.08%
1997 100% 17.38% 31.79% 11.03% 42.83% 22.22% 65.05% 21.11% 86.16% 13.84%
1998 100% 18.47% 32.85% 10.92% 43.77% 21.87% 65.63% 20.69% 86.33% 13.67%
1999 100% 19.51% 34.04% 10.85% 44.89% 21.57% 66.46% 20.29% 86.75% 13.25%
2000 100% 20.81% 35.30% 10.71% 46.01% 21.15% 67.15% 19.86% 87.01% 12.99%
IRS changed methodology, so data above and below this line not strictly comparable
2001 100% 8.05% 17.41% 31.61% 10.89% 42.50% 21.80% 64.31% 21.29% 85.60% 14.40%
2002 100% 7.04% 16.05% 30.29% 11.04% 41.33% 22.39% 63.71% 21.79% 85.50% 14.50%
2003 100% 7.56% 16.73% 30.99% 11.03% 42.01% 22.33% 64.34% 21.52% 85.87% 14.13%
2004 100% 9.14% 18.99% 33.31% 10.77% 44.07% 21.60% 65.68% 20.83% 86.51% 13.49%
2005 100% 10.64% 21.19% 35.61% 10.56% 46.17% 20.90% 67.07% 19.99% 87.06% 12.94%
2006 100% 11.23% 22.10% 36.62% 10.56% 47.17% 20.73% 67.91% 19.68% 87.58% 12.42%
2007 100% 11.95% 22.86% 37.39% 10.49% 47.88% 20.53% 68.41% 19.40% 87.81% 12.19%
2008 100% 10.06% 20.19% 34.95% 11.03% 45.98% 21.71% 67.69% 20.39% 88.08% 11.92%
2009 100% 7.94% 17.21% 32.18% 11.59% 43.77% 22.96% 66.74% 21.38% 88.12% 11.88%
2010 100% 9.24% 18.87% 33.78% 11.38% 45.17% 22.38% 67.55% 20.71% 88.26% 11.74%
2011 100% 8.86% 18.70% 33.89% 11.50% 45.39% 22.43% 67.82% 20.63% 88.45% 11.55%
2012 100% 11.25% 21.86% 36.84% 11.03% 47.87% 21.39% 69.25% 19.64% 88.90% 11.10%
Source: Internal Revenue Service.
Table 6. Total Income Tax Shares, 1980–2012 (percent of federal income tax paid by each group)
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
1980 100% 19.05% 36.84% 12.44% 49.28% 23.74% 73.02% 19.93% 92.95% 7.05%
1981 100% 17.58% 35.06% 12.90% 47.96% 24.33% 72.29% 20.26% 92.55% 7.45%
1982 100% 19.03% 36.13% 12.45% 48.59% 23.91% 72.50% 20.15% 92.65% 7.35%
1983 100% 20.32% 37.26% 12.44% 49.71% 23.39% 73.10% 19.73% 92.83% 7.17%
1984 100% 21.12% 37.98% 12.58% 50.56% 22.92% 73.49% 19.16% 92.65% 7.35%
1985 100% 21.81% 38.78% 12.67% 51.46% 22.60% 74.06% 18.77% 92.83% 7.17%
1986 100% 25.75% 42.57% 12.12% 54.69% 21.33% 76.02% 17.52% 93.54% 6.46%
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 100% 24.81% 43.26% 12.35% 55.61% 21.31% 76.92% 17.02% 93.93% 6.07%
1988 100% 27.58% 45.62% 11.66% 57.28% 20.57% 77.84% 16.44% 94.28% 5.72%
1989 100% 25.24% 43.94% 11.85% 55.78% 21.44% 77.22% 16.94% 94.17% 5.83%
1990 100% 25.13% 43.64% 11.73% 55.36% 21.66% 77.02% 17.16% 94.19% 5.81%
1991 100% 24.82% 43.38% 12.45% 55.82% 21.46% 77.29% 17.23% 94.52% 5.48%
1992 100% 27.54% 45.88% 12.12% 58.01% 20.47% 78.48% 16.46% 94.94% 5.06%
1993 100% 29.01% 47.36% 11.88% 59.24% 20.03% 79.27% 15.92% 95.19% 4.81%
1994 100% 28.86% 47.52% 11.93% 59.45% 20.10% 79.55% 15.68% 95.23% 4.77%
1995 100% 30.26% 48.91% 11.84% 60.75% 19.62% 80.36% 15.03% 95.39% 4.61%
1996 100% 32.31% 50.97% 11.54% 62.51% 18.80% 81.32% 14.36% 95.68% 4.32%
1997 100% 33.17% 51.87% 11.33% 63.20% 18.47% 81.67% 14.05% 95.72% 4.28%
1998 100% 34.75% 53.84% 11.20% 65.04% 17.65% 82.69% 13.10% 95.79% 4.21%
1999 100% 36.18% 55.45% 11.00% 66.45% 17.09% 83.54% 12.46% 96.00% 4.00%
2000 100% 37.42% 56.47% 10.86% 67.33% 16.68% 84.01% 12.08% 96.09% 3.91%
IRS changed methodology, so data above and below this line not strictly comparable
2001 100% 15.68% 33.22% 52.24% 11.44% 63.68% 17.88% 81.56% 13.54% 95.10% 4.90%
2002 100% 15.09% 33.09% 52.86% 11.77% 64.63% 18.04% 82.67% 13.12% 95.79% 4.21%
2003 100% 15.37% 33.69% 53.54% 11.35% 64.89% 17.87% 82.76% 13.17% 95.93% 4.07%
2004 100% 17.12% 36.28% 56.35% 10.96% 67.30% 16.52% 83.82% 12.31% 96.13% 3.87%
2005 100% 18.91% 38.78% 58.93% 10.52% 69.46% 15.61% 85.07% 11.35% 96.41% 3.59%
2006 100% 19.24% 39.36% 59.49% 10.59% 70.08% 15.41% 85.49% 11.10% 96.59% 3.41%
2007 100% 19.84% 39.81% 59.90% 10.51% 70.41% 15.30% 85.71% 10.93% 96.64% 3.36%
2008 100% 18.20% 37.51% 58.06% 11.14% 69.20% 16.37% 85.57% 11.33% 96.90% 3.10%
2009 100% 16.91% 36.34% 58.17% 11.72% 69.89% 16.85% 86.74% 10.80% 97.54% 2.46%
2010 100% 17.88% 37.38% 59.07% 11.55% 70.62% 16.49% 87.11% 10.53% 97.64% 2.36%
2011 100% 16.14% 35.06% 56.49% 11.77% 68.26% 17.36% 85.62% 11.50% 97.11% 2.89%
2012 100% 18.60% 38.09% 58.95% 11.22% 70.17% 16.25% 86.42% 10.80% 97.22% 2.78%
Source: Internal Revenue Service.
Table 7. Dollar Cut-Off, 1980–2012 (minimum AGI for tax return to fall into various percentiles; thresholds not adjusted for inflation)
Year Top 0.1% Top 1% Top 5% Top 10% Top 25% Top 50%
1980 $80,580 $43,792 $35,070 $23,606 $12,936
1981 $85,428 $47,845 $38,283 $25,655 $14,000
1982 $89,388 $49,284 $39,676 $27,027 $14,539
1983 $93,512 $51,553 $41,222 $27,827 $15,044
1984 $100,889 $55,423 $43,956 $29,360 $15,998
1985 $108,134 $58,883 $46,322 $30,928 $16,688
1986 $118,818 $62,377 $48,656 $32,242 $17,302
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $139,289 $68,414 $52,921 $33,983 $17,768
1988 $157,136 $72,735 $55,437 $35,398 $18,367
1989 $163,869 $76,933 $58,263 $36,839 $18,993
1990 $167,421 $79,064 $60,287 $38,080 $19,767
1991 $170,139 $81,720 $61,944 $38,929 $20,097
1992 $181,904 $85,103 $64,457 $40,378 $20,803
1993 $185,715 $87,386 $66,077 $41,210 $21,179
1994 $195,726 $91,226 $68,753 $42,742 $21,802
1995 $209,406 $96,221 $72,094 $44,207 $22,344
1996 $227,546 $101,141 $74,986 $45,757 $23,174
1997 $250,736 $108,048 $79,212 $48,173 $24,393
1998 $269,496 $114,729 $83,220 $50,607 $25,491
1999 $293,415 $120,846 $87,682 $52,965 $26,415
2000 $313,469 $128,336 $92,144 $55,225 $27,682
IRS changed methodology, so data above and below this line not strictly comparable
2001 $1,393,718 $306,635 $132,082 $96,151 $59,026 $31,418
2002 $1,245,352 $296,194 $130,750 $95,699 $59,066 $31,299
2003 $1,317,088 $305,939 $133,741 $97,470 $59,896 $31,447
2004 $1,617,918 $339,993 $140,758 $101,838 $62,794 $32,622
2005 $1,938,175 $379,261 $149,216 $106,864 $64,821 $33,484
2006 $2,124,625 $402,603 $157,390 $112,016 $67,291 $34,417
2007 $2,251,017 $426,439 $164,883 $116,396 $69,559 $35,541
2008 $1,867,652 $392,513 $163,512 $116,813 $69,813 $35,340
2009 $1,469,393 $351,968 $157,342 $114,181 $68,216 $34,156
2010 $1,634,386 $369,691 $161,579 $116,623 $69,126 $34,338
2011 $1,717,675 $388,905 $167,728 $120,136 $70,492 $34,823
2012 $2,161,175 $434,682 $175,817 $125,195 $73,354 $36,055
Source: Internal Revenue Service.
Table 8. Average Tax Rate, 1980–2012 (percent of AGI paid in income taxes)
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
1980 15.31% 34.47% 26.85% 17.13% 23.49% 14.80% 19.72% 11.91% 17.29% 6.10%
1981 15.76% 33.37% 26.59% 18.16% 23.64% 15.53% 20.11% 12.48% 17.73% 6.62%
1982 14.72% 31.43% 25.05% 16.61% 22.17% 14.35% 18.79% 11.63% 16.57% 6.10%
1983 13.79% 30.18% 23.64% 15.54% 20.91% 13.20% 17.62% 10.76% 15.52% 5.66%
1984 13.68% 29.92% 23.42% 15.57% 20.81% 12.90% 17.47% 10.48% 15.35% 5.77%
1985 13.73% 29.86% 23.50% 15.69% 20.93% 12.83% 17.55% 10.41% 15.41% 5.70%
1986 14.54% 33.13% 25.68% 15.99% 22.64% 12.97% 18.72% 10.48% 16.32% 5.63%
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 13.12% 26.41% 22.10% 14.43% 19.77% 11.71% 16.61% 9.45% 14.60% 5.09%
1988 13.21% 24.04% 21.14% 14.07% 19.18% 11.82% 16.47% 9.60% 14.64% 5.06%
1989 13.12% 23.34% 20.71% 13.93% 18.77% 12.08% 16.27% 9.77% 14.53% 5.11%
1990 12.95% 23.25% 20.46% 13.63% 18.50% 12.01% 16.06% 9.73% 14.36% 5.01%
1991 12.75% 24.37% 20.62% 13.96% 18.63% 11.57% 15.93% 9.55% 14.20% 4.62%
1992 12.94% 25.05% 21.19% 13.99% 19.13% 11.39% 16.25% 9.42% 14.44% 4.39%
1993 13.32% 28.01% 22.71% 14.01% 20.20% 11.40% 16.90% 9.37% 14.90% 4.29%
1994 13.50% 28.23% 23.04% 14.20% 20.48% 11.57% 17.15% 9.42% 15.11% 4.32%
1995 13.86% 28.73% 23.53% 14.46% 20.97% 11.71% 17.58% 9.43% 15.47% 4.39%
1996 14.34% 28.87% 24.07% 14.74% 21.55% 11.86% 18.12% 9.53% 15.96% 4.40%
1997 14.48% 27.64% 23.62% 14.87% 21.36% 12.04% 18.18% 9.63% 16.09% 4.48%
1998 14.42% 27.12% 23.63% 14.79% 21.42% 11.63% 18.16% 9.12% 16.00% 4.44%
1999 14.85% 27.53% 24.18% 15.06% 21.98% 11.76% 18.66% 9.12% 16.43% 4.48%
2000 15.26% 27.45% 24.42% 15.48% 22.34% 12.04% 19.09% 9.28% 16.86% 4.60%
IRS changed methodology, so data above and below this line not strictly comparable
2001 14.47% 28.17% 27.60% 23.91% 15.20% 21.68% 11.87% 18.35% 9.20% 16.08% 4.92%
2002 13.28% 28.48% 27.37% 23.17% 14.15% 20.76% 10.70% 17.23% 8.00% 14.87% 3.86%
2003 12.11% 24.60% 24.38% 20.92% 12.46% 18.70% 9.69% 15.57% 7.41% 13.53% 3.49%
2004 12.31% 23.06% 23.52% 20.83% 12.53% 18.80% 9.41% 15.71% 7.27% 13.68% 3.53%
2005 12.65% 22.48% 23.15% 20.93% 12.61% 19.03% 9.45% 16.04% 7.18% 14.01% 3.51%
2006 12.80% 21.94% 22.80% 20.80% 12.84% 19.02% 9.52% 16.12% 7.22% 14.12% 3.51%
2007 12.90% 21.42% 22.46% 20.66% 12.92% 18.96% 9.61% 16.16% 7.27% 14.19% 3.56%
2008 12.54% 22.67% 23.29% 20.83% 12.66% 18.87% 9.45% 15.85% 6.97% 13.79% 3.26%
2009 11.39% 24.28% 24.05% 20.59% 11.53% 18.19% 8.36% 14.81% 5.76% 12.61% 2.35%
2010 11.81% 22.84% 23.39% 20.64% 11.98% 18.46% 8.70% 15.22% 6.01% 13.06% 2.37%
2011 12.54% 22.82% 23.50% 20.89% 12.83% 18.85% 9.70% 15.82% 6.98% 13.76% 3.13%
2012 13.11% 21.67% 22.83% 20.97% 13.33% 19.21% 9.96% 16.35% 7.21% 14.33% 3.28%
Source: Internal Revenue Service.

(1) For data prior to 2001, all tax returns that have a positive AGI are included, even those that do not have a positive income tax liability. For data from 2001 forward, returns with negative AGI are also included, but dependent returns are excluded.

(2) Income tax after credits (the tax measure above) does not account for the refundable portion of EITC. If it were included (as is often the case with other organizations), the tax share of the top income groups would be higher. The refundable portion is legally classified as a spending program by the Office of Management and Budget and therefore is not included by the IRS in these figures.

(3) The only tax analyzed here is the federal individual income tax, which is responsible for about 25 percent of the nation’s taxes paid (at all levels of government). Federal income taxes are much more progressive than payroll taxes, which are responsible for about 20 percent of all taxes paid (at all levels of government), and are more progressive than most state and local taxes (depending upon the economic assumption made about property taxes and corporate income taxes).

(4) AGI is a fairly narrow income concept and does not include income items like government transfers (except for the portion of Social Security benefits that is taxed), the value of employer-provided health insurance, underreported or unreported income (most notably that of sole proprietors), income derived from municipal bond interest, net imputed rental income, worker’s compensation benefits, and others.

(5) Tax return is the unit of analysis, which is broader than households, especially for those at the bottom end, many of which are dependent returns (prior to 2001). Some dependent returns are included in the figures here prior to 2001, and under other units of analysis (like the Treasury Department’s Family Economic Unit) would likely be paired with their parents’ returns.

(6) These figures represent the legal incidence of the income tax, although most distributional tables (such as those from CBO, Tax Policy Center, Citizens for Tax Justice, the Treasury Department, and JCT) assume that the entire economic incidence of personal income taxes falls on the income earner.


[1] Internal Revenue Service, SOI Tax Stats–Individual Income Tax Rates and Tax Shares,http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Income-Tax-Rates-and-Tax-Shares.

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Hell On Wheels — Government Train Wreck Kills 8, Injures 200 Plus — Speeding At Over 100 Miles Per Hour in A 50 MPH Zone — Northeast Regional Train 188, from Washington to New York — Democrats Want More Money and Subsidies For Amtrak — Stop Subsidizing Silly Walks — $1 Billion Per Year For 44 Years in Subsidies To Amtrak — $45 Billion Total — Hell of A Way To Run A Railroad — Shut It Down — Videos

Posted on May 14, 2015. Filed under: American History, Banking, Blogroll, Business, College, Communications, Computers, Constitution, Corruption, Culture, Documentary, Economics, Education, Federal Government, Federal Government Budget, Fiscal Policy, Freedom, Friends, government, government spending, history, Investments, IRS, Law, liberty, Life, Links, Literacy, media, Microeconomics, Monetary Policy, Money, Movies, Music, People, Philosophy, Photos, Police, Politics, Press, Radio, Railroads, Rants, Raves, Regulations, Speech, Strategy, Talk Radio, Tax Policy, Taxes, Technology, Transportation, Video, Wealth, Welfare, Wisdom, Writing | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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Story 1: Hell On Wheels — Government Train Wreck Kills 8, Injures 200 Plus — Speeding At Over 100 Miles Per Hour in A 50 MPH Zone —  Northeast Regional Train 188, from Washington to New York — Democrats Want More Money and Subsidies For Amtrak — Stop Subsidizing Silly Walks — $1 Billion Per Year For 44 Years in Subsidies To Amtrak — $45 Billion Total — Hell of A Way To Run A Railroad — Shut It Down —  Videos

In an aerial photo, emergency personnel work at the scene of a deadly train wreck, Wednesday, May 13, 2015, in Philadelphia, after a fatal Amtrak derailment Tuesday night, in the Port Richmond section of Philadelphia. Federal investigators arrived Wednesday to determine why an Amtrak train jumped the tracks in a wreck that killed at least six people, and injured dozens. (AP Photo/Patrick Semansky)

In an aerial photo, emergency personnel work at the scene of a deadly train wreck, Wednesday, May 13, 2015, in Philadelphia, after a fatal Amtrak derailment Tuesday night, in the Port Richmond section of Philadelphia. Federal investigators arrived Wednesday to determine why an Amtrak train jumped the tracks in a wreck that killed at least six people, and injured dozens. (AP Photo/Patrick Semansky)

image.adapt.960.high.amtrak_train_derailment

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Source: Amtrak train thought to be going twice as fast as it should have been

Amtrak Train That Derailed Was Going 100 M.P.H., Officials Say; 7 Killed

Amtrak Bill Continues History of Wasted Subsidies

Congressional Republicans were elected on a platform of cutting spending, but taxpayers will continue to pay for Amtrak’s losses for at least 5 more years if a bill that just passed the House becomes law.  Can’t Congress do better?

Amtrak has cost the government over $45 billion in subsidies over the last 44 years, allowing it to finance the upkeep of unprofitable routes, overstaffed trains, and the mismanagement of its food services.

The bipartisan Passenger Rail Reform and Investment Act of 2015 would subsidize Amtrak by an estimated $7 billion from 2016 to 2020.  It passed the House by 316 votes to 101 votes on Wednesday and is now headed to the Senate and, presumably, President Obama’s signature.  Amtrak has been operating without official funding authorization since the previous bill expired in October 2013.

Despite generous taxpayer subsidies, Amtrak has run operating losses every year since it began operating in 1971. Although these losses are declining, in 2014, the railroad reported what it described as a “strong” result, with an operating loss of only $227 million.

The operating loss is unlikely to continue to decline due to the losses in Amtrak’s long-distance routes, which bleed about $600 million annually. After factoring in depreciation and other expenses, Amtrak lost a total of $1.1 billion in 2014.

The railroad’s food and beverage service has been singled out in recent years by both government watchdogs and Congress for its wasteful use of government subsidies.  Amtrak lost over $900 million from 2003 to 2013 on food services alone.

In a 2012 congressional hearing, Rep. John Mica (R-FL) noted that a $9 cheeseburger sold on an Amtrak train actually costs $16 after factoring in the services’ operating expenses, and the $7 shortfall is subsidized taxpayers.  A 2013 Inspector General report found that employee-pass riders who are offered free trips on Amtrak also received complimentary meals, resulting in a $240,000 loss for the railroad in 2012.

A provision in the 2015 bill requires Amtrak to develop and implement a plan to eliminate the losses from its food and beverage in five years, but a similar rule passed decades ago failed to achieve savings. Amtrak was required by Congress to turn a profit from its food and beverage service in 1981, but the railroad never complied. A 1997 law went a step further by requiring Amtrak to operate subsidy-free by 2002, but losses continued, along with government subsidies.

The 2015 bill lacks an effective mechanism to force Amtrak’s food service to become solvent in an enforceable timeframe, thus allowing Amtrak to continue losing money without fear of losing its subsidies.  The millions lost from its food services are dwarfed by the billions spent on labor costs and mismanagement of funds, and will continue as long as subsidies prevent accountability for the losses.

The $1 billion in annual subsidies have not covered all of Amtrak’s expenses, and the company has incurred an estimated $1 billion in non-federal debt.  The 2015 bill authorizes $625 million in federal funds to pre-pay Amtrak’s non-federal debt as the railroad has been unable to renegotiate favorable terms to result in savings.

Amtrak’s largest expense is labor, salary, and benefits, which cost over $2 billion in 2014.  Maintaining fully-staffed trains on infrequently-traveled routes has contributed to high labor costs, but the pay rate of Amtrak’s employees raise its costs substantially. The average onboard employee made $41.19 an hour on Amtrak in 2012, while railroads that contracted out services to private companies paid their employees $7.75 to $13.00 an hour.

Base pay may already be substantial, but regulations and poor oversight allowed employees to pocket $185 million in overtime pay in 2013.  The management allowed employee misconduct and wasteful business practices to thrive, even as at the same time it hindered plans to make train stations accessible to the disabled to comply with the Americans with Disability Program.

Amtrak’s did not meet ADA’s goals due to lack of structure and a strategy, according to a 2014 IG report.  Management activities took up 46% of the $100 million budget, $6.5 million was spent on unrelated projects, and an undetermined amount was shipped out of state on non-ADA projects.

The ADA program’s failure was rooted in a lack of vision, goals and objectives, and was compounded by a lack of accountability and decision making authority. The IG’s summation of the ADA program reflects problems inherent to Amtrak’s culture. Its promises of reform have never fully materialized into solvency, and its failure to follow congressional mandates never resulted in penalties.  Amtrak has never made a profit because it doesn’t need to.

Privatizing Amtrak is the only option certain to prevent billions of taxpayer dollars from being wasted while providing the benefits that accompany competitive services. Congress should develop a plan to privatize the railroad and allow for private companies to compete for routes.

America has successfully privatized rail before, as freight railroads were once unprofitable enterprises subsidized by the federal government until the industry was deregulated and sold to private investors in the 1980s.  The industry has thrived since routes were opened up to competition.

Amtrak has had 44 years to become solvent without success.  Reducing labor costs can be an effective interim measure, but deregulating the passenger rail system is the best way to ensure improved service and lower fares for consumers. Cutting Amtrak’s subsidies and ending its monopoly is a responsible alternative to passing inneffective reforms.

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Listen To Pronk Pops Podcast or Download Shows 55-57

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Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 01-09

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