from the Tax Foundation
by Scott A. Hodge
The “superrich” the top 1% now pay 27.6 % of all federal taxes and a record 38.8% of the income taxes. The bottom 80%, 90 million households, pay 31.1 % of all federal taxes and just 13.7 % of income taxes.
In 1980 the bottom 80% paid 43.5% of all federal taxes compared to a 15% share paid by the wealthiest, even though the top marginal tax bracket was then double what is is today.
In 2000 the wealthiest households earned 17.8% of the nation’s income compared to 13.5% in 2002. This is because of the drop in their income from the bust in the technology sector.
from HKO
1. On its face the claim that the rich are paying a smaller share is just a myth and does not stand up to basic facts.
2. The claims ignore the dynamics of our economy. While we do have rich it is rarely the same group that was rich ten years ago. In the 1960’s the rich were asset based, today the wealthiest are knowledge and entrepreneurial based- the Waltons, Bill Gates and the Warren Buffets.
3. As the proportion of taxes paid has shifted far more to the wealthy it is easier for the lower income to support higher tax increases since they pay a much lower part of the burden.
4. When you rob Peter to pay Paul you can always count on Paul’s approval. But in a global economy you also expect Peter to find a friendlier home. The rest of the world is experiencing the success of a friendlier capital environment. When the rich start leaving who then will pay the taxes?
5. The class warfare tactics of the left is a losing political strategy.
tips to Doug Ott