Tax Burden Lies

Time to debunk another Republican lie with some facts.

Here is the latest version of this ever-present canard, from Power Line:

"the "rich" are already paying far more than their fair share. The latest IRS figures show that the top 1 percent of taxpayers pay more in Federal income taxes than the bottom 95 percent combined....That is simply ridiculous. It is questionable whether democracy can survive in a situation where a tiny minority is paying the bills for just about everyone else."

Power Line showed a bar graph claiming that the top 10% of earners paid 72% of all taxes, and the top 1% paid 27% of all taxes.

But, is this so "ridiculous?"

Consider this:

"The year 2006, the latest year for which data is available, has seen concentration of income by the top percentiles which has not been observed since the late 1920’s. Following a three-decade long process of increasing concentration of income by top percentiles, in 2006, a tenth of the U.S. population controlled half the national income, a hundredth of the population controlled a quarter of the income, a thousandth of the population controlled an eighth of the income and one ten-thousandth of the population controlled one-sixteenth of the income."

Here's a chart:

















As you can see, in 2006, the top 10% of earners got close to 50% of all the income; the top 1% got about 23%. So, yes, the people in the top 10% pay a higher share of their income than the people in the bottom 90%. That's what the progressive tax system is supposed to do. But surprisingly (I think) the top 1%, the really rich, pay barely more in relation to what they earn than do all of the rest of us- they make 23% of the money, and pay 27% of the taxes.

Between 1980 and 2006, the average federal tax rate for the top 1% of earners fell by 34%; for the top 10% it fell by 26%.

That tiny minority Power Line talks about is not paying for all of the rest of us- it's barely paying for itself. Yes, the current distribution of tax burden is, as Power Line says, ridiculous. That is because the distribution of wealth is ridiculous. It's time for these people in the top 1% to pay their fair share to the country that made it possible for them to have so much.

And, in my opinion, it's time for them to not have so much.

Comments

Derek said…
"Time to debunk another Republican lie with some facts."

What did you debunk? Nothing. MORE THAN THEIR SHARE.

"The top fifth of households made 56% of pre-tax income in 2006 but paid 86% of all individual income tax revenue collected, according to the most recent data available from the Congressional Budget Office."

Aka they paid 50% more than their fair share.

"Narrowing in further: The top 1% of households, which made 19% of pre-tax income, paid 39% of all individual income taxes."

Aka they paid 100% more than their fair share.

http://money.cnn.com/2009/04/15/pf/taxes/who_pays_most_least/index.htm

How much did the bottom 43% pay?

Nothing, or they actually received money. Socialism at its finest.
Poll P. said…
I'm pretty sure that in "Socialism" there aren't hundreds of billionaires, tens of thousands of millionaires, etc. I though it ws about the resources we own in common being shared in commone and benefited from in common? I never studied it though. I grew up believing whole-heartedly that the Capitalist way was the ONLY sensible,f air way of organizing a society/government/economy. But lately, I'm not so sure. The greed of the Wall Street gangs stunned me!
Green Eagle said…
Grow up, Derek. We don't have time to explain the facts of life to you.
Derek said…
"I'm pretty sure that in "Socialism" there aren't hundreds of billionaires"

There are now more billionaires in Moscow than in NY. France, Sweden, China, all have billionaires.

There are usually less billionaires in socialist countries because they have more money, and the poor have less. Gini index. look it up.

GE: no, you don't have the integrity to back up your claims or to admit you were wrong.

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