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