Economics
Federal Income Taxes
If the numbers are objectively interpreted, the rich pay more than their “fair share” of income taxes.
The Internal Revenue Service (IRS) and Office of Management and Budget (OMB) supply the numbers:
1) From the IRS SOI Tax Stats - Individual Statistical Tables by Tax Rate and Income Percentile Web page, taxes classified by:
Table 3.5: “Tax Rate and Size of Adjusted Gross Income”, tax years 1996 - 2003
Table 5: “Selected Descending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year”, tax years 1985 - 2003
Table 6: “Selected Ascending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year”, tax years 1985 - 2003
2) from the OMB Budget of the United States Government Fiscal Year 2007 Web page:
Table 2.1: “Receipts by Source: 1934-2011”, tax years 1991 - 2011
All tables are Excel spreadsheets.
IRS Table 3.5
This table details 2 key stats:
1) Number of returns; and
2) Taxable income.
The IRS segregates these stats by the size of the reported Adjusted Gross Income (AGI); eg, $2,000 - $4,000, or $50,000 - $75,000.
In and of themselves, these stats are trees and not forest. As we shall see, IRS tables 5 and 6 directly inform and clarify more than table 3.5 does. What tables 5 and 6 do is specify the percentage of total income taxes the top or bottom NNN% of taxpayers pay. For example, in 2003, the bottom 75% of taxpayers paid 16.1% of total income taxes; the top 5%, 54.36%.
I superimposed this methodology on table 3.5. Starting at both the smallest and largest AGI categories, I summed the number of returns and taxable incomes for the next-larger and next-smaller AGI categories, respectively, until these cumulative sums met at a midpoint. Serendipitously, in 1996, the earliest year for table 3.5 data, 50% of total income tax returns fell below $30,000, and 50% above. Thus, $30,000 became the midpoint for all 8 year's data. I then calculated the percentage of these 2 cumulative sums versus the total number of returns and the total income tax dollars. The following tables resulted.
Table FIT-1A
Number of Returns and Income Taxes Paid
Values Themselves Plus Percent Of Cumulative Totals
By Adjusted Gross Income Categories
Tax years 1996 - 1999
| AGI Income Level |
# of Returns / Total FIT $ In Thousands |
Percent Of Cumulative Total |
| |
| |
1996 |
1997 |
1998 |
1999 |
1996 |
1997 |
1998 |
1999 |
| |
| # of Returns |
96,513,833 |
99,217,293 |
100,793,438 |
102,831,402 |
100.0% |
100.0% |
100.0% |
100.0% |
| < $2,000 |
1,297,522 |
1,320,795 |
841,235 |
817,976 |
1.3% |
1.3% |
0.8% |
0.8% |
| $2,000 - $4,000 |
2,678,745 |
2,782,801 |
1,542,300 |
1,569,720 |
2.8% |
2.8% |
1.5% |
1.5% |
| $4,000 - $6,000 |
4,520,531 |
4,723,231 |
3,386,041 |
3,297,866 |
4.7% |
4.8% |
3.4% |
3.2% |
| $6,000 - $8,000 |
7,228,809 |
7,050,536 |
5,613,071 |
5,501,424 |
7.5% |
7.1% |
5.6% |
5.3% |
| $8,000 - $10,000 |
10,508,653 |
10,425,122 |
8,843,813 |
8,630,284 |
10.9% |
10.5% |
8.8% |
8.4% |
| $10,000 - $12,000 |
13,947,388 |
13,746,784 |
11,981,074 |
11,584,037 |
14.5% |
13.9% |
11.9% |
11.3% |
| $12,000 - $14,000 |
17,833,897 |
18,551,107 |
15,674,640 |
15,219,647 |
18.5% |
17.7% |
15.6% |
14.8% |
| $14,000 - $16,000 |
22,349,023 |
21,982,333 |
20,030,487 |
19,398,460 |
23.2% |
22.2% |
19.9% |
18.9% |
| $16,000 - $18,000 |
26,776,762 |
26,038,237 |
24,230,425 |
23,692,563 |
27.7% |
26.2% |
24.0% |
23.0% |
| $18,000 - $20,000 |
30,906,120 |
30,209,513 |
28,534,771 |
27,809,674 |
32.0% |
30.4% |
28.3% |
27.0% |
| $20,000 - $25,000 |
40,343,346 |
39,829,261 |
38,316,367 |
37,469,247 |
41.8% |
40.1% |
38.0% |
36.4% |
| $25,000 - $30,000 |
48,297,538 |
47,799,331 |
46,395,890 |
45,737,267 |
50.0% |
48.2% |
46.0% |
44.5% |
| Midpoint |
| $30,000 - $40,000 |
48,216,295 |
51,417,962 |
54,397,548 |
57,094,135 |
50.0% |
51.8% |
54.0% |
55.5% |
| $40,000 - $50,000 |
35,735,167 |
38,532,946 |
41,353,958 |
43,890,810 |
37.0% |
38.8% |
41.0% |
42.7% |
| $50,000 - $75,000 |
26,228,243 |
28,780,061 |
31,418,816 |
34,053,357 |
27.2% |
29.0% |
31.2% |
33.1% |
| $75,000 - $100,000 |
11,928,123 |
13,623,177 |
15,559,734 |
17,331,490 |
12.4% |
13.7% |
15.4% |
16.9% |
| $100,000 - $200,000 |
6,130,559 |
7,179,047 |
8,345,345 |
9,523,933 |
6.4% |
7.2% |
8.3% |
9.3% |
| $200,000 - $500,000 |
1,521,405 |
1,806,158 |
2,083,164 |
2,427,242 |
1.6% |
1.8% |
2.1% |
2.4% |
| $500,000 - $1,000,000 |
324,285 |
405,752 |
478,383 |
552,486 |
0.3% |
0.4% |
0.5% |
0.5% |
| > $1,000,000 |
110,762 |
144,252 |
171,707 |
204,751 |
0.1% |
0.1% |
0.2% |
0.2% |
| |
| Total FIT $ |
$666,574,904 |
$738,816,217 |
$813,245,403 |
$906,396,887 |
100.0% |
100.0% |
100.0% |
100.0% |
| < $2,000 |
$81,957 |
$80,956 |
$59,535 |
$59,862 |
0.0% |
0.0% |
0.0% |
0.0% |
| $2,000 - $4,000 |
$273,053 |
$307,555 |
$222,361 |
$237,288 |
0.0% |
0.0% |
0.0% |
0.0% |
| $4,000 - $6,000 |
$615,578 |
$676,633 |
$543,946 |
$558,030 |
0.1% |
0.1% |
0.1% |
0.1% |
| $6,000 - $8,000 |
$1,265,840 |
$1,310,405 |
$1,164,193 |
$1,162,246 |
0.2% |
0.2% |
0.1% |
0.1% |
| $8,000 - $10,000 |
$2,574,495 |
$2,593,841 |
$2,324,176 |
$2,336,643 |
0.4% |
0.4% |
0.3% |
0.3% |
| $10,000 - $12,000 |
$4,641,435 |
$4,578,202 |
$4,169,380 |
$4,122,493 |
0.7% |
0.6% |
0.5% |
0.5% |
| $12,000 - $14,000 |
$7,417,495 |
$7,289,367 |
$6,798,749 |
$6,690,948 |
1.1% |
1.0% |
0.8% |
0.7% |
| $14,000 - $16,000 |
$11,280,634 |
$11,000,471 |
$10,446,188 |
$10,184,333 |
1.7% |
1.5% |
1.3% |
1.1% |
| $16,000 - $18,000 |
$16,104,752 |
$15,188,491 |
$14,831,103 |
$14,615,470 |
2.4% |
2.1% |
1.8% |
1.6% |
| $18,000 - $20,000 |
$21,661,916 |
$20,534,660 |
$20,380,296 |
$19,718,759 |
3.2% |
2.8% |
2.5% |
2.2% |
| $20,000 - $25,000 |
$38,314,807 |
$37,253,118 |
$37,003,619 |
$36,105,957 |
5.7% |
5.0% |
4.6% |
4.0% |
| $25,000 - $30,000 |
$57,568,106 |
$56,418,351 |
$56,036,181 |
$55,529,501 |
8.6% |
7.6% |
6.9% |
6.1% |
| Midpoint |
| $30,000 - $40,000 |
$609,006,798 |
$682,397,866 |
$757,209,222 |
$850,867,386 |
91.4% |
92.4% |
93.1% |
93.9% |
| $40,000 - $50,000 |
$566,160,848 |
$638,972,126 |
$713,637,249 |
$807,075,506 |
84.9% |
86.5% |
87.8% |
89.0% |
| $50,000 - $75,000 |
$519,497,491 |
$591,807,502 |
$665,650,925 |
$759,773,419 |
77.9% |
80.1% |
81.9% |
83.8% |
| $75,000 - $100,000 |
$413,742,660 |
$480,773,356 |
$550,652,341 |
$638,685,302 |
62.1% |
65.1% |
67.7% |
70.5% |
| $100,000 - $200,000 |
$339,925,826 |
$400,574,716 |
$462,402,67 |
$543,165,841 |
51.0% |
54.2% |
56.9% |
59.9% |
| $200,000 - $500,000 |
$229,595,310 |
$273,923,718 |
$317,849,822 |
$380,147,963 |
34.4% |
37.1% |
39.1% |
41.9% |
| $500,000 - $1,000,000 |
$141,702,171 |
$174,803,718 |
$206,731,208 |
$250,607,696 |
21.3% |
23.7% |
25.4% |
27.6% |
| > $1,000,000 |
$97,956,884 |
$123,132,726 |
$147,958,224 |
$183,711,745 |
14.7% |
16.7% |
18.2% |
20.3% |
Table FIT-1B
Number of Returns & Income Taxes Paid
Values Themselves Plus Percent Of Cumulative Totals
By Adjusted Gross Income Categories
Tax years 2000 - 2003
| AGI Income Level |
# of Returns / Total FIT $ In Thousands |
Percent Of Cumulative Total |
| |
| |
2000 |
2001 |
2002 |
2003 |
2000 |
2001 |
2002 |
2003 |
| |
| # of Returns |
105,254,144 |
104,163,692 |
102,266,929 |
101,386,203 |
100.0% |
100.0% |
100.0% |
100.0% |
| < $2,000 |
728,355 |
519,666 |
328,733 |
306,971 |
0.7% |
0.5% |
0.3% |
0.3% |
| $2,000 - $4,000 |
1,501,044 |
1,010,524 |
647,990 |
559,185 |
1.4% |
1.0% |
0.6% |
0.6% |
| $4,000 - $6,000 |
3,271,197 |
2,408,649 |
1,860,240 |
1,647,967 |
3.1% |
2.3% |
1.8% |
1.6% |
| $6,000 - $8,000 |
5,440,104 |
4,149,222 |
3,295,397 |
2,975,630 |
5.2% |
4.0% |
3.2% |
2.9% |
| $8,000 - $10,000 |
8,416,009 |
7,014,668 |
5,942,678 |
5,683,950 |
8.0% |
6.7% |
5.8% |
5.6% |
| $10,000 - $12,000 |
11,336,236 |
9,727,892 |
8,730,293 |
8,457,104 |
10.8% |
9.3% |
8.5% |
8.3% |
| $12,000 - $14,000 |
14,732,869 |
12,872,692 |
11,663,129 |
11,292,952 |
14.0% |
12.4% |
11.4% |
11.1% |
| $14,000 - $16,000 |
18,710,831 |
16,600,981 |
15,058,868 |
14,453,115 |
17.8% |
15.9% |
14.7% |
14.3% |
| $16,000 - $18,000 |
22,902,958 |
20,690,567 |
18,924,339 |
18,011,233 |
21.8% |
19.9% |
18.5% |
17.8% |
| $18,000 - $20,000 |
27,190,547 |
24,666,436 |
22,906,170 |
21,812,555 |
25.8% |
23.7% |
22.4% |
21.5% |
| $20,000 - $25,000 |
36,775,992 |
34,156,194 |
32,303,772 |
30,829,664 |
34.9% |
32.8% |
31.6% |
30.4% |
| $25,000 - $30,000 |
45,011,555 |
42,546,820 |
40,639,473 |
39,060,834 |
42.8% |
40.8% |
39.7% |
38.5% |
| Midpoint |
| $30,000 - $40,000 |
60,249,589 |
61,616,872 |
61,627,456 |
62,235,369 |
57.2% |
59.2% |
60.3% |
61.5% |
| $40,000 - $50,000 |
46,832,190 |
47,954,413 |
47,856,906 |
48,600,779 |
44.5% |
46.0% |
46.8% |
47.9% |
| $50,000 - $75,000 |
36,445,859 |
37,411,124 |
37,385,071 |
38,244,356 |
34.6% |
35.9% |
36.6% |
37.7% |
| $75,000 - $100,000 |
19,429,445 |
19,904,054 |
20,050,209 |
20,925,494 |
18.5% |
19.1% |
19.6% |
20.6% |
| $100,000 - $200,000 |
10,844,100 |
11,018,442 |
10,819,917 |
11,397,413 |
10.3% |
10.6% |
10.6% |
11.2% |
| $200,000 - $500,000 |
2,767,423 |
2,560,884 |
2,409,860 |
2,533,084 |
2.6% |
2.5% |
2.4% |
2.5% |
| $500,000 - $1,000,000 |
634,678 |
547,128 |
504,437 |
536,434 |
0.6% |
0.5% |
0.5% |
0.5% |
| $1,000,000 - $1,500,000 |
239,265 |
192,510 |
168,446 |
180,908 |
0.2% |
0.2% |
0.2% |
0.2% |
| $1,500,000 - $2,000,000 |
139,932 |
107,315 |
90,591 |
99,383 |
0.1% |
0.1% |
0.1% |
0.1% |
| $2,000,000 - $5,000,000 |
95,428 |
70,986 |
59,367 |
65,433 |
0.1% |
0.1% |
0.1% |
0.1% |
| $5,000,000 - $10,000,000 |
28,777 |
19,018 |
15,284 |
17,257 |
0.0% |
0.0% |
0.0% |
0.0% |
| > $10,000,000 |
11,201 |
6,812 |
5,283 |
6,106 |
0.0% |
0.0% |
0.0% |
0.0% |
| |
| Total FIT $ |
$1,008,640,395 |
$926,646,420 |
$829,830,845 |
$780,309,225 |
100.0% |
100.0% |
100.0% |
100.0% |
| < $2,000 |
$53,222 |
$26,789 |
$16,642 |
$11,228 |
0.0% |
0.0% |
0.0% |
0.0% |
| $2,000 - $4,000 |
$228,872 |
$97,801 |
$61,803 |
$42,131 |
0.0% |
0.0% |
0.0% |
0.0% |
| $4,000 - $6,000 |
$574,061 |
$248,104 |
$164,752 |
$131,119 |
0.1% |
0.0% |
0.0% |
0.0% |
| $6,000 - $8,000 |
$1,234,470 |
$603,554 |
$458,814 |
$385,665 |
0.1% |
0.1% |
0.1% |
0.0% |
| $8,000 - $10,000 |
$2,348,843 |
$1,381,389 |
$1,003,954 |
$920,119 |
0.2% |
0.1% |
0.1% |
0.1% |
| $10,000 - $12,000 |
$4,050,690 |
$2,747,332 |
$1,986,298 |
$1,852,318 |
0.4% |
0.3% |
0.2% |
0.2% |
| $12,000 - $14,000 |
$6,470,228 |
$4,879,190 |
$3,408,274 |
$3,177,924 |
0.6% |
0.5% |
0.4% |
0.4% |
| $14,000 - $16,000 |
$9,812,061 |
$8,009,498 |
$5,478,875 |
$5,076,234 |
1.0% |
0.9% |
0.7% |
0.7% |
| $16,000 - $18,000 |
$14,061,695 |
$11,960,014 |
$8,296,321 |
$7,517,390 |
1.4% |
1.3% |
1.0% |
1.0% |
| $18,000 - $20,000 |
$19,355,172 |
$16,729,256 |
$11,892,372 |
$10,686,547 |
1.9% |
1.8% |
1.4% |
1.4% |
| $20,000 - $25,000 |
$35,464,532 |
$31,999,122 |
$23,474,621 |
$21,318,266 |
3.5% |
3.5% |
2.8% |
2.7% |
| $25,000 - $30,000 |
$54,510,545 |
$50,945,493 |
$38,553,943 |
$35,198,411 |
5.4% |
5.5% |
4.6% |
4.5% |
| Midpoint |
| $30,000 - $40,000 |
$877,627,069 |
$875,700,927 |
$791,276,902 |
$745,110,814 |
87.0% |
94.5% |
95.4% |
95.5% |
| $40,000 - $50,000 |
$833,319,827 |
$831,818,058 |
$753,952,156 |
$710,385,075 |
82.6% |
89.8% |
90.9% |
91.0% |
| $50,000 - $75,000 |
$860,226,019 |
$782,508,683 |
$711,339,814 |
$670,968,525 |
85.3% |
84.4% |
85.7% |
86.0% |
| $75,000 - $100,000 |
$736,836,405 |
$659,210,153 |
$600,979,677 |
$567,414,101 |
73.1% |
71.1% |
72.4% |
72.7% |
| $100,000 - $200,000 |
$632,914,149 |
$555,561,328 |
$502,279,350 |
$477,342,640 |
62.7% |
60.0% |
60.5% |
61.2% |
| $200,000 - $500,000 |
$447,897,858 |
$368,400,335 |
$325,859,633 |
$312,283,921 |
44.4% |
39.8% |
39.3% |
40.0% |
| $500,000 - $1,000,000 |
$303,259,078 |
$234,357,326 |
$201,947,487 |
$194,558,110 |
30.1% |
25.3% |
24.3% |
24.9% |
| $1,000,000 - $1,500,000 |
$227,576,682 |
$166,163,034 |
$138,247,414 |
$134,442,503 |
22.6% |
17.9% |
16.7% |
17.2% |
| $1,500,000 - $2,000,000 |
$192,269,012 |
$135,486,388 |
$110,444,738 |
$108,683,593 |
19.1% |
14.6% |
13.3% |
13.9% |
| $2,000,000 - $5,000,000 |
$169,634,394 |
$116,745,172 |
$94,312,800 |
$93,221,512 |
16.8% |
12.6% |
11.4% |
11.9% |
| $5,000,000 - $10,000,000 |
$111,073,351 |
$70,253,638 |
$54,889,596 |
$55,806,155 |
11.0% |
7.6% |
6.6% |
7.2% |
| > $10,000,000 |
$76,502,781 |
$45,769,129 |
$34,500,461 |
$36,169,017 |
7.6% |
4.9% |
4.2% |
4.6% |
What do these tables evidence? At a minimum, that the rich pay their fair share.
Below is a chart that graphs the percent of number of returns and the percent of income tax dollars paid versus 2003's AGI categories. Note the spread.
Below is a chart that graphs the percent of income tax dollars paid versus the AGI categories for 1996-1999.
The chart visibly indicates that, if income tax rates remain constant, the income tax burden on the rich tends to increase. Hence, we can formulate a general rule:
As total income taxes paid increases, the rich pay a larger percentage of total income taxes.
Below is a similar chart for 2000-2003.
The chart reveals the opposite: That the rich have paid a decreased share of total income taxes since 2000.
However, this condition is an artifact of 2001's income tax rate cuts. In the following portion of Table 1B, note the percentages for AGI categories in the millions. After dropping substantially in 2001 and 2002, the percentage increased again in 2003.
Table FIT-1B Excerpt
Number of Returns & Income Taxes Paid
Values Themselves Plus Percent Of Cumulative Totals
By Adjusted Gross Income Categories
Tax years 2000 - 2003
| AGI Income Level |
Total FIT $ In Thousands |
Percent Of Cumulative Total |
| |
| |
2000 |
2001 |
2002 |
2003 |
2000 |
2001 |
2002 |
2003 |
| |
| $1,000,000 - $1,500,000 |
$227,576,682 |
$166,163,034 |
$138,247,414 |
$134,442,503 |
22.6% |
17.9% |
16.7% |
17.2% |
| $1,500,000 - $2,000,000 |
$192,269,012 |
$135,486,388 |
$110,444,738 |
$108,683,593 |
19.1% |
14.6% |
13.3% |
13.9% |
| $2,000,000 - $5,000,000 |
$169,634,394 |
$116,745,172 |
$94,312,800 |
$93,221,512 |
16.8% |
12.6% |
11.4% |
11.9% |
| $5,000,000 - $10,000,000 |
$111,073,351 |
$70,253,638 |
$54,889,596 |
$55,806,155 |
11.0% |
7.6% |
6.6% |
7.2% |
| > $10,000,000 |
$76,502,781 |
$45,769,129 |
$34,500,461 |
$36,169,017 |
7.6% |
4.9% |
4.2% |
4.6% |
Why an artifact? Examine the following chart.
Total income taxes paid dropped from 1.01 trillion in 2000 to 780 billion in 2003. The inverse of the above general rule is also true:
As total income taxes paid decreases, the rich pay a smaller percentage of total income taxes.
However, income tax receipts bottomed in 2003, increased from 2003 to 2004, and are projected to increase at their usual increasingly-rapid rate each succeeding year. Thus, if income tax rates remain unchanged, the rich will again pay an increasing share of total income taxes each and every year.
Below is the tabular data upon which the OMB chart is based.
Table FIT-2
Income & Corporate Tax Receipts
In Millions Of Dollars
| Year |
Income Tax |
Corporate |
| 1991 |
$467,827 |
$98,086 |
| 1992 |
$475,964 |
$100,270 |
| 1993 |
$509,680 |
$117,520 |
| 1994 |
$543,055 |
$140,385 |
| 1995 |
$590,244 |
$157,004 |
| 1996 |
$656,417 |
$171,824 |
| 1997 |
$737,466 |
$182,293 |
| 1998 |
$828,586 |
$188,677 |
| 1999 |
$879,480 |
$184,680 |
| 2000 |
$1,004,462 |
$207,289 |
| 2001 |
$994,339 |
$151,075 |
| 2002 |
$858,345 |
$148,044 |
| 2003 |
$793,699 |
$131,788 |
| 2004 |
$808,859 |
$189,371 |
| 2005 |
$927,222 |
$278,282 |
| 2006 Est |
$997,599 |
$277,122 |
| 2007 Est |
$1,096,366 |
$260,567 |
| 2008 Est |
$1,208,484 |
$268,498 |
| 2009 Est |
$1,268,446 |
$277,136 |
| 2010 Est |
$1,370,132 |
$281,960 |
| 2011 Est |
$1,466,869 |
$292,012 |
Table 3.5 does not include all income tax returns filed; rather, it includes only those with “modified taxable income”. The IRS has this to say:
A person who has no tax will have no modified taxable income.
Tables 5 and 6 include all income tax returns filed, both with and without modified taxable income. Using this data, let's calculate the number of these returns.
Table FIT-3
Income Tax Returns Filed
Without “Modified Taxable Income”
| Description |
1996 |
1997 |
1998 |
1999 |
| Total returns |
119,441,767 |
121,503,284 |
123,775,831 |
126,008,974 |
| Returns with modified taxable income |
96,513,833 |
99,217,293 |
100,793,438 |
102,831,402 |
| Difference |
22,927,934 |
22,285,991 |
22,982,393 |
23,177,572 |
| Original line "$25,000 - $30,000" |
48,297,538 |
47,799,331 |
46,395,890 |
45,737,267 |
| New line "$25,000 - $30,000" |
71,225,472 |
70,085,322 |
69,378,283 |
68,914,839 |
| |
| Description |
2000 |
2001 |
2002 |
2003 |
| Total returns |
128,227,143 |
128,817,051 |
128,332,986 |
128,609,786 |
| Returns with modified taxable income |
105,254,144 |
104,163,692 |
102,266,929 |
101,386,203 |
| Difference |
22,972,999 |
24,653,359 |
26,066,057 |
27,223,583 |
| Original line "$25,000 - $30,000" |
45,011,555 |
42,546,820 |
40,639,473 |
39,060,834 |
| New line "$25,000 - $30,000" |
67,984,554 |
67,200,179 |
66,705,530 |
66,284,417 |
Now, let's add these returns into Tables 1A and 1B, and recalculate the percentages.
Table FIT-4
Table 1 Recalculated
To Include All Income Tax Returns Filed
| |
Income Level |
# of Returns |
Percent Of Total |
| |
| |
|
1996 |
1997 |
1998 |
1999 |
1996 |
1997 |
1998 |
1999 |
| |
| Original |
Below $30,000 |
48,297,538 |
47,799,331 |
46,395,890 |
45,737,267 |
50.0% |
48.2% |
46.0% |
44.5% |
| New |
|
71,225,472 |
70,085,322 |
69,378,283 |
68,914,839 |
59.6% |
57.7% |
56.1% |
54.7% |
| Midpoint |
| Original |
$30,000 & above |
48,216,295 |
51,417,962 |
54,397,548 |
57,094,135 |
50.0% |
51.8% |
54.0% |
55.5% |
| New |
|
48,216,295 |
51,417,962 |
54,397,548 |
57,094,135 |
40.4% |
42.3% |
43.9% |
45.3% |
| |
| |
|
2000 |
2001 |
2002 |
2003 |
2000 |
2001 |
2002 |
2003 |
| |
| Original |
Below $30,000 |
45,011,555 |
42,546,820 |
40,639,473 |
39,060,834 |
42.8% |
40.8% |
39.7% |
38.5% |
| New |
|
67,984,554 |
67,200,179 |
66,705,530 |
66,284,417 |
53.0% |
52.2% |
52.0% |
51.5% |
| Midpoint |
| Original |
$30,000 & above |
60,249,589 |
61,616,872 |
61,627,456 |
62,235,369 |
57.2% |
59.2% |
60.3% |
61.5% |
| New |
|
60,242,589 |
61,616,872 |
61,627,456 |
62,325,369 |
47.0% |
47.8% |
48.0% |
48.5% |
Take 2003 as an example. If we disregard taxpayers with no modified taxable income, 61.5% paid 95.5% of total income taxes. However, if we include taxpayers filing returns with no modified taxable income, 48.5% of taxpayers paid this same 95.5%, a 13% decrease.
What this table affirms is that high-income taxpayers certainly pay their fair share of income taxes.
IRS Tables 5 And 6
The following charts should be self-explanatory.
Conclusions
Draw your own. You have the info.
Maybe Progressives mean other taxes when they say “fair share”?
Inheritance taxes. So, we work our tails off during our lives to bequeath the fruits of our labor to the government? What happened to working our tails off for our children? I guess Progressives don't much like the family.
Social Security. Perhaps. Too large an issue to address here.
As is, the income tax is already ‘progressive’.
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