Do the rich pay their fair share in taxes?

by / 0 Comments / 46 View / May 13, 2015

 

Misleading Claim: The rich don’t pay their “fair share” in taxes.

The Refutation:
“Estimates from Congress’s Joint Committee on Taxation and recently highlighted in the Wall Street Journal make it abundantly clear that high-income earners pay a disproportionate share of taxes in relation to their income in the U.S.”

• Higher-income households will pay practically ALL of the federal income tax in 2014. Specifically, taxpayers with incomes over $100,000 a year will pay 95.2% of the income taxes in the United States.

• Higher-income households pay a higher share of OVERALL federal taxes as well: 75.7% to be exact. This includes income taxes, but ALSO includes payroll taxes and excise taxes, etc. The disproportionate burden on the wealthy is still present, albeit less severe.

• On the other hand, taxpayers making less than $50,000 a year, which make up about half of the country, pay only 5.6% of overall federal taxes.

• It’s even worse when looking only at income taxes. These same people earning less than $50,000 a year will have what’s called a “negative income tax rate.” This means they’ll actually get MORE money BACK from the income tax system than they paid in.

Conclusion:
Once aware of these numbers, it should be self evident that funding 95.2% of America’s income tax revenue means wealthy individuals aren’t guilty of paying “too little.”
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Sources:
https://www.jct.gov/publications.html?func=download&id=4568&chk=4568&no_html=1

http://taxfoundation.org/blog/do-rich-pay-their-fair-share

http://m.us.wsj.com/articles/BL-WB-44750

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