“There exists also in the human heart a depraved taste for equality which impels the weak to attempt to lower the powerful to their own level, and reduces men to prefer equality in slavery to inequality with freedom.”
- Alexis de Tocqueville -
Looks like the rich pay more than their fair share of taxes after all.
Scott Hodge of the Tax Policy Center Blog wrote today about newly released IRS statistics that show,
[T]he top 1 percent of taxpayers paid 40.4 percent of the total income taxes collected by the federal government. This is the highest percentage in modern history. By contrast, the top 1 percent paid 24.8 percent of the income tax burden in 1987, the year following the 1986 tax reform act.
Remarkably, the share of the tax burden borne by the top 1 percent now exceeds the share paid by the bottom 95 percent of taxpayers combined. In 2007, the bottom 95 percent paid 39.4 percent of the income tax burden. This is down from the 58 percent of the total income tax burden they paid twenty years ago.
To put this in perspective, the top 1 percent 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. (Emphasis Added)
How dare those greedy rich bastards oppose tax increases!
Here’s Hodge’s final observation:
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 percent of taxpayers than does any nation and our poor people have the lowest tax burden of those in any nation.
These statistics prove that Democrat proposals to further tax the rich are not grounded in principles of good public policy or simple notions of fairness, but rather are designed to pit one class of Americans against another in order to gain political advantage.
Democrats most recent efforts to convince the non-rich majority that the rich minority is the source of all their woes, is cynical, manipulative, and unoriginal.
But most of all it’s just bad for the country.
15 responses so far ↓
1 The Tax Club // Jul 30, 2009 at 10:18 am
I agree I feel that by taxing the wealthy more than everyone else causes classes to clash. It leaves plenty of room for controversy and fights. There has to be something else done.
2 Peter // Jul 30, 2009 at 11:00 am
Tax Club,
Thanks for the comment.
Make no mistake about it, Democrats benefit from the class warfare because there are many more non-rich people than there are rich people.
It’s political!
3 Tax Overhaul Needed Says Brookings Institute // Aug 10, 2009 at 12:36 am
[...] Who Pays Taxes: Top 1% Pay More Than Bottom 95% [...]
4 Obama Will Raise Taxes on Middle Class, Financial Times Says // Aug 11, 2009 at 12:17 am
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5 Obama Will Raise Taxes on Middle Class, Financial Times Says // Aug 11, 2009 at 12:17 am
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6 Deadline EXTENDED: I will be using Obama Bucks to by my 1st house!!! - Page 3 - Political Forum // Nov 6, 2009 at 12:11 am
[...] The top 1 percent of taxpayers paid 40.4 percent of the total income taxes collected by the federal government. This is the highest percentage in modern history. By contrast, the top 1 percent paid 24.8 percent of the income tax burden in 1987, the year following the 1986 tax reform act. Remarkably, the share of the tax burden borne by the top 1 percent now exceeds the share paid by the bottom 95 percent of taxpayers combined. In 2007, the bottom 95 percent paid 39.4 percent of the income tax burden. This is down from the 58 percent of the total income tax burden they paid twenty years ago. To put this in perspective, the top 1 percent 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. http://blog.pappastax.com/index.php/…han-bottom-95/ [...]
7 Oregon’s Original Revenue Raising Idea: Tax the Rich // Jan 24, 2010 at 10:59 am
[...] Who Pays Taxes? Top 1% Pay More than Bottom 95% Bookmark & Share: [...]
8 Obama on Taxes // Jan 28, 2010 at 1:31 am
[...] Who Pays Taxes? Top 1% Pay More than Bottom 95% [...]
9 More Statistics Showing that the Rich Pay Bulk of U.S. Taxes // Jun 21, 2010 at 9:41 am
[...] Who Pays Taxes: Top 1% Pay More Than Bottom 95% [...]
10 The Richest 10% Pay 71% of Federal Income Taxes // Sep 5, 2010 at 11:22 am
[...] Who Pays Taxes: Top 1% Pay More Than Bottom 95% [...]
11 Jason Trask // May 14, 2011 at 12:18 pm
Obviously the top 1% are going to pay more in taxes than the bottom 99%. They own most of the money. And the reason that the amount that they’re paying has increased since 1987 is that back then, the wealth in this country was more equitably distributed. During the past 15 years or so money has trickled up from the middle class to the top 10% of earners. You say that the amount that’s paid in taxes is at an all time high for the top 1%. But that’s not true regarding percentages paid in taxes by that group. For instance, when Eisenhower was president, the top earners paid 91% in income taxes (okay, look it up if you don’t believe me) and during Reagan’s first 6 years, they paid 50%. The tax rates for the wealthy are at an all time low right now and you have the temerity to complain about the fact that Obama may raise taxes on folks earning over $250,000 per year. You’re killing me.
12 Mike Selfridge // Jun 12, 2011 at 2:21 am
Jason Trask, that is where I think you are wrong in your $250k comparison to the Eisenhower era. You mix the facts, though you sound clear in thought – but are you wrong? Help me understand here. Sure, the top earners during Eisenhower presidency paid a marginal tax rate of 91%. In 1954, the marginal tax rate on those who made plus $250k was 91%, and that dropped to 89% in 1956 for that specific tax bracket. But what about the time value of money? In today’s dollars (assuming an average inflation rate of 3% inflation, compounded annually, over 61 years ), that $250k in annual income is actually $1.5 million in today’s dollars (2011). The same $250k you are using today in comparison to the Eisenhower era was the equivalent of making $41k back then. And during Eisenhower’s term, the marginal tax rate for $41k in 1956 (just to pick a year during his term) was just 38% (dropped from 56% when he took office). So help me understand your point? Are you comparing apples to apples, or are you just caught up in political rhetoric of the past?
13 Kevin Grail // Jul 19, 2011 at 1:07 pm
Jason and Mike, you both make good points. Tax rates were higher years ago, even adjusted for inflation. The rich and powerful make the rules and over the years have increasingly benefited greatly from our economic system.
Our system over-rewards the few while the many languish. Are the super-rich really working so much harder than the poor? Are they really so much smarter? I don’t think so.
The rich can afford to pay more because they have more.
14 The Huffington Post: 99.33% of Millionaires Pay Income Taxes // Aug 6, 2011 at 12:11 pm
[...] Who Pays Taxes: Top 1% Pay More than Bottom 95% [...]
15 Wizard Prang // Sep 29, 2011 at 4:51 pm
>> The rich can afford to pay more because they have more. <<
They can also afford to leave…
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