IRS News Release  
July 11, 1991

Newly Released Statistics Show
Rise in 1989 Adjusted Gross Income

Individual income tax return statistics for 1989 show adjusted gross income to be nearly $3.3 trillion, according to the Spring 1991 issue of the Internal Revenue Service quarterly publication, the "Statistics of Income Bulletin" available now.

That $3.3 trillion is an increase of 6.8 percent over 1988, according to the Bulletin. Other preliminary data on individual income tax returns in this issue indicate a sharp rise of 15.5 percent in taxable interest and a decline of 6.2 percent in net capital gains. Itemized deductions increased 7.5 percent, even though the personal interest deduction dropped by almost 51 percent. Total income tax rose from $412.9 billion for 1988 to $439.4 billion for 1989, an increase of 6.4 percent.

An analysis of private foundation returns for 1986 and 1987 explains the changes in foundation revenue, and the impact of stock market conditions and the Tax Reform Act of 1986. Total constant-dollar revenue of private foundations fell by 17.2 percent, or $3.4 billion, from 1986 to 1987, partly reflecting major declines in contributions received and in net gains, less losses, from sales of assets.

For 1987, the largest foundations earned a median real rate of return on investments of 1.4 percent, a large decline compared to the 13.9 return for 1986. Nevertheless, the constant-dollar value of grants made by foundations increased by 5.8 percent over 1986.

The bulletin also has selected historical data and other statistics based on corporation, individual income and other tax returns; tax collections and refunds; and projections of returns to be filed. The historical data include a detailed analysis of 1989 individual income and tax data by state and size of adjusted gross income.

The "Statistics of Income Bulletin" is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. The annual subscription rate is $20 for four issues; a single issue is $7.50. It is published four times a year.

For other statistical information, write to the Director, Statistics of Income Division, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013.

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