My favorite acts tend to be singer-songwriter solo types who are known for their lyrics. Since people aren’t restricting themselves to bands, I will mention Robbie Fulks, Hank Williams, and Nick Lowe.
Figured I’d get beaten to The Smiths, but I’m surprised I’m the first to bring up The Replacements.
I thought someone would have mentioned the Doors by now, so I will.
Assemblage 23.
**Jeff Tweedy **of **Wilco **writes amazing lyrics. Especially from the “Summerteeth” album forward.
Yes, the painter Francis Bacon. While I have no idea whether he really originated that toast, he’s certainly a more likely source than a person who lived mostly in the 16th century, who would never have heard of a type of wine called “champagne.”
Agree with Wilco and Modest Mouse, would like to add:
The Weakerthans
Bright Eyes
I’m not even sure if there’s even a current incarnation, but for my money, the best lyrics - hands down - in rock, were created by King Crimson (In the Court of the Crimson King in particular) as well as some of their later work like Larks’ Tongues in Aspic. IIRC, the band considered the lyrics so important, that one member’s role was exclusively to write them (Pete Sinfield).
The Agents of Fortune album didn’t provide lyrics but there was an address you could write to for the band’s lyrics, so I did. About 18 months later, no exaggeration, I got a huge envelope in the mail. All the lyrics had been printed out on greenbar paper. I was really disappointed that the lyrics which sounded so cool on the record were really meaningless when you saw them written down.
Younger folks will have to Wiki “greenbar” – hmm, and maybe “album” too.
Never cared much for lyrics in ItCotCK personally, but the KC album Discipline has fantastic lyrics throughout. It’s also a kickass album.
Sinfield provided lyrics for the first four King Crimson albums only. He then fell out of favor with Robert Fripp, and by the time of Larks’ Tongues in Aspic, Richard Palmer-James had been recruited as lyricist. That association lasted for three albums, until that version of the band broke up in 1974. All subsequent incarnations of the band, starting with Discipline in 1981, have had singer/guitarist Adrian Belew providing his own lyrics.
Just funny to note that each of the specific albums mentioned is the first album by each of the three Crimson lyricists. 
How about Pink Floyd?
Some of my favorite lyrical heavy weights(hiphop)…
Aesop Rock
Busdriver
Illogic
Lupe Fiasco
Pharoahe Monch
Sage Francis
Saul Williams
Talib Kweli
Very, very interesting. Thanks for this.
Seconded. Most underrated band of all time. They got pretty close to success with SELF TITLED but otherwise never really got big.
Them and the Supersuckers.
Right, exactly that Francis Bacon. I’d like to think Tom Waits is a fan of Bacon’s art, as it’s just as odd and beautiful and off-putting as Tom Waits’ work.
Let me add Neko Case to the list of great lyricists.
Since we’re adding solo acts, for me the best lyricist ever was Warren Zevon. As Rolling Stone said, “He took the California music scene and kicked it in the ass.”
And if California slides into the ocean,
Like the mystics and statistics say it will,
I predict this motel will be standing,
Until I pay my bill.
Song Noir. One of the only practitioners of it.
Here’s two of mine:
the electro-goth band Diary of Dreams
Marc Almond
I’m disappointed no one has yet mentioned Cake. “The Distance” and “Short Skirt, Long Jacket” have some nigh-poetic imagery.
Squeeze consistently churned out songs with clever, memorable lyrics.
Unlike a lot of other bands known for lyrics, their music was also very good.