@Frank Apisa,
Quote:In America, the nuts on the right want the government to redistribute what little the poor have to the rich.
Uh huh, and would you care to cite your reference for this ridiculous statement? (it's pretty hard to redistribute zero taxes or a negative tax number)
The rich do not pay the most taxes, they pay ALL the taxes
Jane Wells | @janewells
Wednesday, 11 Dec 2013 | 11:56 AM ET
Buried inside a Congressional Budget Office report this week was this nugget: when it comes to individual income taxes, the top 40 percent of wage earners in America pay 106 percent of the taxes. The bottom 40 percent...pay negative 9 percent.
You read that right. One group is paying more than 100 percent of individual income taxes, the other is paying less than zero.
It's right there in Table 3 on page 13 of the report. The numbers are based on 2010 IRS and Census Bureau figures.
How does someone pay negative taxes? The CBO's formula offsets whatever taxes are paid with "refundable tax credits." Some of these are due to "government transfers" of money back to the taxpayer in the form of social security and food stamps.
According to the CBO, the wealthiest 1 percent of Americans saw before-tax income grow more than 16 percent from 2009 to 2010, which isn't such a surprise since the stock market was coming off the bottom. Most of the rest of the country only saw gross incomes grow about 1 percent. When it comes to federal taxes,the top bracket paid 69 percent of the total last year. The bottom bracket paid 0.4 percent.
However, the greatest disparity in the report is the one mentioned above, regarding the share of individual income taxes paid by various income groups.
First, let's look at incomes. The report shows the lowest-paid Americans earned on average $8,100 in 2010 but received nearly $25,000 in government aid. You begin to see how "transfers" create a negative tax burden.
But wait, there more. The CBO says about a quarter of the lowest earning group actually paid negative 15 percent of all individual income taxes. Contrast that with the combined share of the wealthiest two groups, which totals more than 100 percent.
April 17, 2014
By Andrew Lundeen
The question is often asked: Do the rich pay their “fair share” in taxes? It’s never particularly clear what the rich currently pay, nor is it clear what share of taxes is fair for them to pay. A good place to start would be to determine exactly what high-income earners currently pay.
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 disproportion share of taxes in relation to their income in the U.S.
According to the Journal, taxpayers with income over $100,000 a year earn 60 percent of the nation’s income and pay 95.2 percent of the income taxes in the United States. If we consider all federal taxes paid (income, payroll, and excise taxes), those making over $100,000 (a little over 20 percent of taxpayers) pay for 75.7 percent of total federal taxes (this excludes the burden on corporate and investment taxes).
If we break this down further (as in the chart below), the level of progressivity in the tax code becomes even clearer. Those making over $200,000 comprise just over 5 percent of the nation’s taxpayers, earn 32.3 percent of the income, but pay 46.7 percent of total federal taxes and 70 percent of federal income taxes.
As we move down the income scale the ratio of taxes to income decreases. Those making between $100,000 and $200,000 a year make up 15.6 percent of all taxpayers, earn 27.7 percent of income, pay 29 percent of total federal taxes and 25.2 percent of federal income taxes.
Those between $50,000 and $100,000 make up about a quarter of the country, earn 23.6 percent of all income, pay 18.6 percent of federal taxes and 11.3 percent of federal income taxes. Finally, taxpayers making less than $50,000 a year represent about half of the country, earn 16.4 percent of the nation’s income, pay 5.6 percent of taxes and have a negative share of income taxes because they receive more back then they pay out (largely due to refundable tax credit programs).