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Top 1% of Taxpayers Pay Almost 40% of All Taxes

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by

mwkruse
in , , ,

Carpe Diem (Mark Perry): Top 1% of Taxpayers Pay Almost 40% of All Taxes

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Concerning the top tiers, Perry writes, "The tax shares are the highest on record for these groups in comparable IRS data going back to 1986."

This fits well with what I've read about the Bush tax cuts. A greater percentage was cut at the bottom, and the threshold at which taxes are owed was raised. The net effect was fewer people paying federal income taxes and the wealthy paying a higher percentage. You would think the Democrats would applaud such an outcome, but because the wealthy got a greater dollar amount, there is the endless wail of "tax cuts for the wealthy." It just shows the opportunities for demonization are far more important than the actual outcomes. 🙂

Comments

7 responses to “Top 1% of Taxpayers Pay Almost 40% of All Taxes”

  1. Peggy Avatar
    Peggy

    How can we break through this barrier? It is exactly this kind of simplistic thinking that is causing so many problems. There has to be a way to do it….

    Reply
  2. Michael W. Kruse Avatar
    Michael W. Kruse

    When you find the answer, be sure to include me in the memo circulation.
    🙂

    Reply
  3. Rob Decker Avatar
    Rob Decker

    One thing to note: though the post title says “…of all taxes,” it really only refers to non-FICA income taxes. The percentages would be much different if social security and Medicare taxes were included. And even more different is the “employer contribution” of medicare were counted as an employee contribution which, in the long run, they really are.
    Unfortunately, most people still think of social security and medicare taxes as if they were contributions rather than taxes. What would happen to a pension fund or insurance company if they ran a fund in the same way?

    Reply
  4. Michael W. Kruse Avatar
    Michael W. Kruse

    I noticed that about the title as well. Not quite accurate.
    Of course, if we add capital gains taxes and estate taxes we balance things back the other direction. Then we get into various local taxes. I think overall the wealthy do contribute a higher percentage than most realize.

    Reply
  5. Rob Decker Avatar
    Rob Decker

    Michael:
    I think capital gains and estate taxes are included in the chart, since they are part of the 1040 process.
    But I agree that the urban legend of the rich guy who pays no taxes through loopholes has become largely untrue in recent years, from what it seems.

    Reply
  6. ZZMike Avatar
    ZZMike

    If, as the Left insists, it really wants “fairness”, we should really cut “taxes for the rich”.

    Reply
  7. Michael W. Kruse Avatar
    Michael W. Kruse

    Rob, mea culpa. Trying to do too many things at once. I’m too young for senior moments. 🙂
    Mike, of course the issue become is deciding what is fair. Is the same percentage for everyone fair? Do the weatlhy recieve a disproportionate benefit from public goods and therefore owe more? All depends on what fair means.
    Whatever the case I think it is a bit off the mark to say the rich are sliding by.

    Reply

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