Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: rhytonen
I'm not certain exactly how your examples exactly "debunked" anything, considering there wasn't (as far as I can tell) a definitive relationship that could be established that corrects for economic trends. Sure, there have been times of greater and lesser revenues (as a percentage of GDP), but the percentage has hovered around 20%. Sure, you can raise tax rates today, and gain revenues tomorrow, until the economy adjusts to the new paradigm, and revenues decline the day after.

Heres some more figures for you to chew on.

Income taxes are only a portion of the taxes Americans pay to the Federal government. Americans pay income, payroll, excise, and corporate taxes to the Federal government.

According to the CBO (in 2007)..

The TOTAL effective Federal individual tax rate (all personal taxes including payroll/excise/corporate) is as follows....

Lowest Quintle 4.0%
Second Quintile 10.6%
Third Quintile 14.3% (This is where the median would be)
Fourth Quintile 17.4%
Fifth (Highest) Quintile 25.1%

Average for all quintles is 20.4%.



Here's something that many people aren't aware of......

Most people are aware that income taxes are paid by those in the top half of all households, but also believe the proportion of taxes paid by all quintiles evens out once you include payroll (and other) taxes.

This is not true.

According to the CBO (in 2007) the percentage of all federal taxes paid including income/payroll/corporate/excise taxes is as follows:

Lowest Quintle 0.8%
Second Quintile 4.4%
Third Quintile 9.2%
Fourth Quintile 16.5%
Fifth (Highest) Quintile 68.9%

Top 10% 55.0%
Top 5% 44.3%
Top 1% 28.1%

See that? That means the top 40% of all households in America pay 85.4% of all Federal taxes (NOT just income taxes). The Top 10% pays more than half.



How about Social insurance (a.k.a. payroll) taxes? (see same link above)

Lowest Quintle 4.8%
Second Quintile 10.8%
Third Quintile 16.6%
Fourth Quintile 24.7%
Fifth (Highest) Quintile 42.9%

Interesting don't you think that the Top 40% pay 2/3 of all payroll taxes?

So the next time you hear somebody say the "rich don't pay their fair share", you can let them in on the secret.
59 posted on 08/18/2011 7:48:20 PM PDT by RangerM
[ Post Reply | Private Reply | To 58 | View Replies ]


To: RangerM

Top 10% 55.0%
Top 5% 44.3%
Top 1% 28.1%

You have just identified why we now are an Oligarchy.

“Progressive” taxation...illustrated here...by you...is the ONLY means by which the very rich-who can buy anything they want otherwise-can buy a government. And We the People have sold it to them...and then wonder what happened to the Constitution.


60 posted on 08/18/2011 7:57:58 PM PDT by mo
[ Post Reply | Private Reply | To 59 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson