The CBO, in a report released on July 10, 2012, detailed the Distribution of Household Income and Federal Taxes for the years 2008 and 2009. Here are the findings:
- The top 1% earned 13.3% of all income and paid 22.3% of all taxes, or 67% more than their fair share of income.
- The top 20% earned 50.8% of all income and paid 67.9% of all taxes, or 33% more than their fair share of income.
- The middle 20% (middle class) earned 14.1% of all income and paid 9.4% of all taxes, or 33% less than their fair share of income.
- The bottom 40% earned 14.9% of all income and paid 4.1% of all taxes, or 73% less than their fair share of income.
Or if you prefer pictures, here’s a simple graph from The Heritage Foundation:
Here are some additional insights from the report:
- The top 1% have an effective tax rate (the amount you actually pay as a percent of income after all deductions) of 29%.
- Under Obama, the top 20% have seen their share of income fall, while lower percentile groups have seen it rise (income redistribution, well on its way).
So, what have we learned?
- The wealthy are paying far more federal income tax than their share of income
- The middle class is paying far less in federal taxes than its share of income
- And “the poor” are paying almost no federal income tax at all.
The wealthy, the successful, are not only paying their fair share they’re providing federal services for more than 60% of Americans who are not paying their fair share.
Just say thank you, Class Warriors. And be on your way.
Update: In December, 2013, CBO released the same report for 2010. To see those results, read my post: No, The Rich Aren’t Getting Tax Breaks.