January 12, 2007

The Rich Are Soaked

The top 1% of American earners paid 35% of all taxes paid to the IRS, according to the IRS's annual study of income tax data.

The Top 1% Pay 35%

Here's a way to think of the distribution of current income-tax payments: Imagine a banquet attended by 100 random Americans. If the bill for the meal is distributed like the income tax, the richest person in the room is required to pay one-third of the tab -- or more than all 50 attendees with a below-average income. The three richest people are charged as much as the other 97. And the 30 or so lowest-income people in the room -- those with a family income of $30,000 or less -- pay nothing and eat for free.

This is by any definition a "progressive" tax system. Make that highly progressive. It's true that lower-income workers are also dunned with payroll taxes, but that still doesn't do much to alter the fact that the current tax code really does soak the rich.

Posted by Jill Fallon at January 12, 2007 11:06 AM | TrackBack | Permalink
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