Propaganda: The Rich are not paying their fair share! They’re greedy, evil, and don’t care about the rest of us!
In my post Yes, The Rich Are Paying More Than Their Fair Share we looked into the disparity of federal income tax paid by the wealthy, relative to their share of earned income. The post was based on the CBO report detailing Distribution of Household Income and Federal Income Taxes for 2009.
The CBO updated that report in December of 2013, to include 2010. And guess what? It got worse.
- The top 1% earned 14.9% of all income and paid 39% of all income taxes, or 262% of their fair share.
- The top 20% earned 51.9% of all income and paid 92% of all taxes, or 178% of their fair share.
- The middle 20% (middle class) earned 14.2% of all income and paid 2.9% of all taxes, or 20% of their fair share.
- The bottom 40% earned 9.6% of all income and actually got paid by the IRS to 2.9% of all taxes
- The bottom 20% earned 5.1% and actually got paid by the IRS to 6.2% of all taxes paid.
Here’s a chart summarizing the above:
On page 13 of the report, Table 3, the CBO actually provides the following: The top 40% of income earners pay 106% of all federal income taxes.
How is that possible? The CBO includes taxes that are paid with refundable tax credits, government transfers of money back to “taxpayers” in the form of social security and food stamps.
So what have we learned?
- The top 1% pay 262% of their fare share of income taxes
- The top 20% pay 178% of their fare share of income taxes
- The middle class pays almost no income tax
- The bottom 40% of income earners not only pay no income tax, they are actually subsidized by the IRS at the expense of the top 60%.
The top 20% are funding the entire Federal leviathan, including all the social welfare programs demanded by the remaining 80%. All by themselves.
This is fair?