Top 1% Now Pays More in Tax Than Bottom 95%

[Mistermj]

Top 1% Now Pays More in Tax Than Bottom 95%
CARPE DIEM
By Mark J. Perry

TAX POLICY BLOG -- Newly released data from the IRS clearly debunks the conventional Beltway rhetoric that the "rich" are not paying their fair share of taxes and disproportionately benefited from the Bush tax cuts.

Indeed, the IRS data shows that in 2007—the most recent data available—the top 1% of taxpayers paid 40.4% of the total income taxes collected by the federal government. This is the highest percentage in modern history. By contrast, the top 1% paid 24.8% of the income tax burden in 1987, the year following the 1986 tax reform act (see chart above).

Remarkably, the share of the tax burden borne by the top 1% now exceeds the share paid by the bottom 95% of taxpayers combined. In 2007, the bottom 95% paid 39.4% of the income tax burden. This is down from the 58% of the total income tax burden they paid twenty years ago.

To put this in perspective, the top 1% is comprised of just 1.4 million taxpayers and they pay a larger share of the income tax burden now than the bottom 134 million taxpayers combined.

Some in Washington say the tax system is still not progressive enough. However, the recent IRS data bolsters the findings of an OECD study released last year showing that the U.S.—not France or Sweden—has the most progressive income tax system among OECD nations. We rely more heavily on the top 10% of taxpayers than does any nation and our poor people have the lowest tax burden of those in any nation.

We are definitely overdue for some honesty in the debate over the progressivity of the nation's tax burden before lawmakers enact any new taxes to pay for expanded health care.

 

[Willie99]

shhhhhhhhhhhh

the retard in chief just yesterday repeated his often told lie that the Bush tax cuts only benefited the wealthiest Americans.

I can say without a doubt that middle America had a significant tax reduction under the 2001 tax cuts, there is no dispute or no argument to be made. It's a fact, a lock, the truth...............................

 

[punter]

What you are seeing is the result of a couple of decades of income graduating to the top percentiles. This is not a healthy situation for any economy. Since the lower income levels have no power to change their lessening cut/the Rich's increasing cut of the income pie, it falls on taxation to do the job. That is tough to get done because the wealthy also have the political clout. http://en.wikipedia.org/wiki/Household_income_in_the_United_States

 

[Mistermj]

What you are seeing is the result of a couple of decades of income graduating to the top percentiles. This is not a healthy situation for any economy. Since the lower income levels have no power to change their lessening cut/the Rich's increasing cut of the income pie, it falls on taxation to do the job. That is tough to get done because the wealthy also have the political clout. http://en.wikipedia.org/wiki/Household_income_in_the_United_States

the Rich's increasing cut of the income pie, it falls on taxation to do the job. That is tough to get done because the wealthy also have the political clout.

Apparently it's not tough to get done...look at the chart again.

 

[punter]

I would think that the progressive nature of income tax would give you a graph like that as all the income is gravitating to the top.

Thing is its still not enough to bring the balance back. We are heading to an economy with all the wealth at the top and the rest of us as peons.

 

[Willie99]

I would think that the progressive nature of income tax would give you a graph like that as all the income is gravitating to the top.

Thing is its still not enough to bring the balance back. We are heading to an economy with all the wealth at the top and the rest of us as peons.

you do know incomes were not decreasing in that time frame, right?

that being the case, your argument makes no sense

 

[punter]

The figures I saw were the bottom 16% going from 14K to 16K in the last 10 years. If that is not going backwards Gods a possum.

 

[Mistermj]

Punters economic plan explained...

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[Willie99]

The figures I saw were the bottom 16% going from 14K to 16K in the last 10 years. If that is not going backwards Gods a possum.

hehehehe

those people don't pay taxes, so their tax bill couldn't go down. They have no bearing on this topic. They probably received larger tax refunds than they used to under the welfare program they call the "Earned Income Credit", which has been increasing over the years.

 

[barman]

Top 1% Now Pays More in Tax Than Bottom 95%


Good

 

[barman]

I guess the lesson learned here is that we all want to strive to squeeze into that top 2-4% tier

 

[ScottL]

My best friend in HS registered Republican at 18. He was the only one of our group to do so. I asked him why. I still remember his reply.

"I intend to work very hard and I want to keep more of what I earn, and not have it taken from me to support people who are able-bodied and don't want to work. I'm going to retire by the time I'm 30 and buy my parents a farm."

He didn't retire at 30 but he could have. He didn't buy that farm either, only because his parents love their house too much. 'H' is still working. Only because he loves to work. And there are 500 people who also love working for him now.

 

[Georgiaboy]

Since the lower income levels have no power to change their lessening cut....

Sure they can its called work harder and work smarter. Take a damn risk. 40hr weeks are for losers.

 

[punter]

Sure they can its called work harder and work smarter. Take a damn risk. 40hr weeks are for losers.

16 to 20 of the population? Get real, there are people working 2 and 3 jobs and still at poverty level. Do you go through life with your eyes closed?

 

[Georgiaboy]

and who do they have to blame?? Wait, I know its those evil rich people. Also, I said work harder and SMARTER. If it was about working hard ditch diggers would be millionaires.

 

[SayHeyKid]

This is flat out theft. Very sickning what is happening to this country, individuals who have the balls not to unjust taxes to this criminal government are true patriots.

I don't condone doing that if you want to keep your family and life, but I must respect true patriots such as Ed and Elaine Brown.

 

[punter]

George, So the key for poor people is to be born smarter.

Maybe they should just be born richer that way they wouldn't be troubled by looking down on those less fortunate than themselves.

 

[Georgiaboy]

Or, they could simply apply themselves, u know like graduate from a 2 year tech school or college. Stop with the "less fortunate" that means people who have money are some how lucky. Also you may have mentioned it previously so I apologize up front. What do you consider "rich". How much does a single person/family have to make?

 

[kcameron95]

Is it fair that top %1 have about 20% of the income?

Is it fair that top %1 have about 34% wealth of the nation?

Since WW2, top %1 has benefited the most. Their income/wealth has increased more then any other group in the country. It only makes sense they give more to the system which has benefited them the most.

Most people don't realize that taxes for the rich were once at around 90%.

 

[Georgiaboy]

In 1918 taxes on the top income earners was 77%.