Tax Lawyer's Blog

Scott Hodge of Tax Policy Blog reports:

A new report by the Congressional Budget Office undermines President Obama’s constant refrain that the “rich” are paying less than their share of federal taxes and that the middle class is over burdened.

The report, Average Federal Tax Rates in 2007, shows that the wealthiest 20 percent of households earned 55.9 percent of all income but paid 86 percent of federal income taxes and 68.9 percent of all federal taxes.

By contrast, every other income group earned a greater share of income than their share of the tax burden. For example, the lowest earning households – those with an average pre-tax income of $18,400 – earned 4 percent of the nation’s income but paid 0.8 percent of all federal taxes.

Those in the middle income group – with an average pre-tax income of $64,500 – earned 13.1 percent of the income but paid 9.2 percent of all federal taxes. Even households in the fourth quintile – with an average pre-tax income of $94,100 – earned 19.3 percent of the income but paid 16.5 percent of all federal taxes.

This study, like the myriad studies that preceded it, does not conform to the left’s view of the world as one consisting only of victims (the poor and the middle class) and their oppressors (the rich). Consequently, it will be demeaned, diminished and denied.

Here’s the CBO chart anyway:

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