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Tax Burden of Top 1% Now Exceeds That of Bottom 95%

hypocritexposer

Well-known member
July 29, 2009
Tax Burden of Top 1% Now Exceeds That of Bottom 95%

by Scott A. Hodge

Newly released data from the IRS clearly debunks the conventional Beltway rhetoric that the "rich" are not paying their fair share of taxes.

Indeed, the IRS data shows that in 2007—the most recent data available—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.

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.

http://www.taxfoundation.org/blog/show/24944.html
 

Lonecowboy

Well-known member
Now Hypo if I'm reading this right there are only 135.4 million taxpayers in America??
for 2007 top 1% paid 40.0%
bottom 95% paid 39.4%
who paid the rest, 20.6%-- business??
where is the other 4% figured in??

something is not adding up for me here.
 

hypocritexposer

Well-known member
here's the bottom part of the article, just in case you are interested.

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.

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.

blog20090729-chart1.jpg
 

Lonecowboy

Well-known member
hypocritexposer said:
That would leave 4% between the top 1% and the bottom 95%

so that the top 5% pays 60.6%

they should have outlined that in the article

I didn't click on the link, just what you had quoted.
Thanks Hypo- that makes sense now.


outrageous isn't it.
and look what the money is spent on-- even more outrageous!!
guess that why we're seeing more TEA parties, the outrage has to be expressed somewhere.
May as well be in a constructive manner.
 
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