As the prospect of a double-dip recession rises again, new data from the Internal Revenue Service provide a preview of what to expect if the economy again slams income—and a reminder of how hard a double dip would be on American families. As David Cay Johnston of Reuters points out, average incomes plunged nearly 14 percent from 2007 to 2009 as the financial crisis unfolded.
Here’s a by-the-numbers look at the Great Income Drop that accompanied the Great Recession.
$54,283
The average adjusted gross income of American taxpayers reported to the IRS for 2009, the lowest level since 1997.
$8.69 trillion
Total adjusted gross income reported on tax returns for 2007
$8.26 trillion
Total adjusted gross income reported on tax returns for 2008
$7.63 trillion
Total adjusted gross income reported on tax returns for 2009, a drop of nearly 8 percent from 2008 and more than 12 percent from 2007.
4.18 million
Drop in total number of tax returns showing any earnings from a job in 2009 compared with 2007.
11,298,837
2009 tax returns showing unemployment compensation, a 48 percent jump from 2007 levels.
$29.42 billion
Total amount of unemployment compensation reported to the IRS in 2007.
$83.54 billion
Total amount of unemployment compensation reported to the IRS in 2009.
391, 261
Taxpayers who reported earning $1 million or more in 2007
235,413
Taxpayers who reported earning $1 million or more in 2009
959
Taxpayers earning $1 million or more who paid no income tax for 2007
1,470
Taxpayers earning $1 million or more who paid no income tax for 2009
8,274
Taxpayers reporting income of $10 million or more in 2009, down 55 percent from 2007
