The top 1% income earners ($296,828 +) paid 18.6% of all income tax in 2000 ?

Question

http://www.house.gov/jct/x-45-00.pdf

So who here is going to sit here and tell me that the top 1% pay the majority of taxes ?

Keep in mind that this chart released by the house starts the top 1% at $296,828 and higher..... this includes all the millionaires / billionaires in this country... Meaning if you dwindled this percentage down to the top .01 percent... the percent of overall tax they paid goes even lower.

So can anyone find me evidence to refute this document which is a government document ?

From what i'm seeing here.... the "middle class" which most would consider the 50k - 130k range.... is paying upwards of 70% of all taxes in this country. Those on the extreme low end of income obviously pay very little 2% - 8%... but the middle class from what i'm seeing here is getting screwed royally.

Can you prove me wrong ?

KEY TO READING THIS CHART CORRECTLY > The highest 10% begins at $100,928, the highest 5% at $134,308 and the highest 1% at $296,828.

CONSERVATIVE...that is correct... the "top 5%".... includes people who make up to 134k... For a family of 4 or 5...this is still middle class my friend. The information they released is designed to confuse you by lumping middle income people in with millionaires. When people complain that the "uber rich" aren't paying their fair share.... I don't think they are referring to people who make $296,828.. .they are referring to people who make 750k to millions per year. These people are getting off easy compared to what is considered middle class.

Ron4prez: I get what your saying, because i'm saying the same thing... the numbers are purposefully maneuvered so that one can look at this and say...the top 10% pay 80% of the taxes... but that top 10 percent is comprised ENTIRELY of the middle class 50k - 134k. btw- i'm surprised you support Ron Paul and would make such a statement.

Jim - No i'm upset that I pay 15.4% in taxes each week, while someone making over a million dollars per year pays 2.2%

Explain how that's fair please...

Ritch... the UBER RICH...i'm not talking about 200k now alright...i'm talking about millionaires.... they pay less than 3% of all the taxes in this country. You need to look again buddy.

Answer 1

Warren Buffett has criticized this system as well stating that he pays 17% of income toward taxes while his secretary pays 30%.

Answer 2

Well, here are some updated numbers (2004). I think what might be worth noting is the differences in the KINDS of tax each bracket is paying. According to the CBO document I've provided (from the government, as requested) the top 1% have 25.3% of the ENTIRE federal tax liability. However, if we narrow that down to INDIVIDUAL income taxes then their share of the total rises to 36.7%. This is all in the document, look at page 6. So can I prove you wrong? Well, I can prove you inaccurate.

Edit-
I did some more analysis of the document I provided, and found something interesting. The top quintile (1/5) has an average income of $207,200, while the top 10% has an average income of $297,800. Simple math says then that the 80%-90% range is an average of $116,600 a year. Now, let's use the actual definition of the word "middle" to go a step further. Let's throw out the bottom 20% as being lower class, and the top 20% (starting at $116,600) as being the upper class. A six figure salary IS upper class, as defined by the word. So we've got 60% of America in the middle class, the 20% - 80% range. Guess what? They're only paying 31.8% of ALL federal taxes. Now, this is not what you CONSIDER middle class, this is what IS DEFINED as middle class by the meaning of the word.

Answer 3

You are reading the numbers right, but drawing some unusual conclusions.

First, it mentions "individual" many times throughout the document, so it may not apply to households or family, but to individuals.

You would consider those individuals earning up to $130k as "middle class?" Maybe in Manhattan or Beverly Hills. For most of the rest of the nation, $130k is a damn fine living!

I for one would consider an individual making $100k or more rich. By that standard, rich (the top 10%) individuals are paying 40% of the taxes.

But even using your standard, remember that's 1% of the people paying 15% of all the taxes. Are they getting 15 times more gov't benefits to match their contribution?

Also, this report counts all taxes, including social security payroll taxes, which stop at $97k, because SS is not just another tax, but it is a contribution to a disability and retirement insurance program. Also counted are excise taxes, etc.

When you look strictly at income tax data linked below. You see the top 10% paying 68% of the taxes.

Maybe if the liberals would stop trying to nickel and dime us to death by taxing every little thing we do, the taxes would be paid more by the rich and less on the rest of us.

Answer 4

So, let me get this straight, you're upset that 1% of the population isn't paying more than 18.6% of the income tax collected by the US Government. Your answer lies in the numbers, with a population of over 300,000,000 people there are simply a huge difference in the number of tax payers in the "middle class" group. In otherwords, If $100 is 100% of the money and 100 people are 100% of the contributors to get that money, and 1 person gives $18.60 and then 99 people pay $83.40 total or about $0.85 each you don't think the guy paying $18.60 is doing his fair share? Now consider that that 1% at the top are the ones employing a big chunk of the other 99%. That's the great thing about statistics, if you look at them one way the rich are the bad guys but if you look at it in terms of economies of scale, it makes more sense.

Answer 5

Who said that the top 1% pay the majority of the taxes? Find me that statement and ask who ever said it. What is true is the fact that the top 5% pay 54% of the taxes in this country, a small minority of Americans pay the majority of taxes. Even that's obvious from your little chart. And did you notice? There are some that pay 'negative taxes'. How's that possible? Oh yeah, they not only don't pay taxes, but Mommy and Daddy government give their little dependents an allowance.

Answer 6

The tax system was originally meant to tax the rich. But the really rich people use accountants and tax attorneys to advise them, and they use corporations to pay less taxes. The government designed the tax system to favor corporations because corporations create jobs and are the engines of the economy.

So, the tax burden falls upon the middle class who do not use or don't know how to use corporations to reduce their tax burden. So, the middle class ends up shouldering the tax burden. Corporate tax is on business profits only, and it is a flat 15%, as opposed to up to 50% for those earning without corporate structure.

Yes, in essence, you're right: we are getting screwed royally. But you and I can do something about it.

1. We can complain about it (which does not help).
2. We can educate ourselves about taxes and corporate structures and how to build businesses.
3. We can work with politicians to make a change in the tax system.

The federal income tax did not exist before 1913. Before that, we had no federal income tax, and Americans did just fine without it. Now, under the burden of taxes and other middle class problems such as the stock market crash, the slowing economy, the mortgage crisis, and the aging baby boomers needing more medical care, the middle class is getting smaller and smaller, and the burden will fall upon the poor and the lower middle class, unless the middle class and poor educate themselves financially.

Answer 7

If you take into consideration that the economy has shifted since those old 2000 numbers the disparity is even grater.

In 2000 the US had 11 Billionaires Now we have just under 1000. And maybe more by the time you read this.

Answer 8

For the love of god please read what you have written. The top 1% pay 18% - does their water come out 18% colder, 18% better road, 18% better more whatever?

If you want to live in a FREE nation, everything should be equal, should it not? 1% paying 18% I think that is more then their fair share.

And I don't know of anyone on here that said the top 1% paid the majority of income taxes. If they did, it was in error. Now the top 20% do pay the majority of income taxes, again, NOT their fair share.

Finally, Buffett pays taxes as CAPITAL GAINS, his secretary pays as regular income!!!! Big big difference/.

Answer 9

These stats are such lies... i believe more than 1% of the country makes more than 300,000 dollars a year. And if 5 percent of the population control 95 percent of the wealth. Well than they should pay 95 percent of the taxes.

Answer 10

Good point. Also, although they wrote the check, a portion of the funds were paid by their company (compensation package) which does not impact their bank accounts whatsoever.

ALSO, if they receive a housing allowance (compensation package), this is not considered as personal income and therefor non taxable. Through in a company car which alleviates the need to pay a car note/lease then the real picture begins to emerge.