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View Diary: Political Jujitsu and the "half don't pay any taxes" lie (97 comments)

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  •  No, not a wealth tax (1+ / 0-)
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    The Angry Architect

    and you're right that would need an amendment (I believe we should have that) but there is no easy way to figure what % of income they control and how that income is defined- earnings, cap gains, stock dividends, etc. so I selected the amount they control and called it wealth.

    If you want to get technical, it's not the top 1% per se but a futher division, the top 1/10th of that 1%, that's who REALLY doesn't pay anywhere near their fair share since they take their money as cap gains subject to a whopping 15%. The average income in that strata is around $20 million. Willard is a perfect example- he doesn't even pay 15%.

    "Our problems stem from our acceptance of this filthy, rotten system." - Dorothy Day

    by Dave925 on Fri Apr 27, 2012 at 09:57:10 AM PDT

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    •  Yes, there is a way to tell how much. (4+ / 0-)

      The IRS reports every year by income category (1) how much of the country's income that category gets, and (2) how much of the country's income tax that category pays.

      The latest IRS data is reprinted here.  The top 1% has 17% of the income and pays 37% of the income tax, for the last year that the IRS reported data, tax year 2009.  2010 data should be coming out soon.  

      If you want to see what percentage of income each income level pays in ALL federal taxes, the CBO keeps that data under "effective federal taxes."  That CBO  data is summarized here.   As that shows, most of the top 1% pays a higher effective tax rate than any other group -- the average effective tax rate -- all taxes -- on the top 1% in 2007 was about 29.5%.  (the first chart there is all federal taxes; the rest break it out by tax.)  It is true that some in the top 1% pay a lower effective federal tax rate -- that is an average.  Which means that some in the top 1% pay an effective federal tax rate (all taxes) of higher than 30%.  

      •  But that income level (0+ / 0-)

        Stretches from the average of 340K to the aforementioned $20 Million.

        That's why it's not useful nor does it tell the full story of what actually happens in that one percentile.

        It really needs to be broken down by tenths at the least to tell the full story because 340K is simply upper middle class in high cost of living locales such as NYC or LA and these people are not "rich" especially when you consider the $20 Million average of that .01% means there's lots of folks in the top 1% that don't make near that 340K average and that's why the CBO information is misleading in the extreme.

        "Our problems stem from our acceptance of this filthy, rotten system." - Dorothy Day

        by Dave925 on Fri Apr 27, 2012 at 08:36:52 PM PDT

        [ Parent ]

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