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View Diary: Surprise! CBO report shows 50% of government tax expenditures go to top 20% of earners (50 comments)

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  •  This is NOT outrageous (5+ / 0-)
    50% of government tax expenditures go to top 20% of earners.  
    When you consider these facts, as supported by IRS data, which can be found here.  That same data is  summarized in an easier to read chart here (so you can check the accuracy yourself).

    The top 10% is a two income household of about AGI $112,000 and up (in other words, two incomes each of $60,000 or more) and the top 10% has 43% of the income and pays 70% of the federal income taxes.  The top 25%, a two-income household of about $66,000 and up, has about 65% of the income and pays about 87% of the federal income taxes.  

    So, the CBO says that the top 20% of households, which is maybe a middle-aged couple each earning $40,000 - $50,000 or so, and which pays maybe 75% of the federal income taxes in this country, gets 50% of the deductions for things like health insurance benefits, mortgage interest, and charitable deductions.  

    And why is that outrageous?  (1) The top 20% is NOT the rich in the eyes of most people; and (2) They pay 75% or so of the federal income taxes, so there's nothing unfair about them getting 50% of the federal income tax deductions.  

    I agree wholeheartedly that our federal income tax system is a complete mess, and needs a major overhaul, including vast simplification (as I discuss in my comment above).  But this particular data is not outrageous if you look at the facts behind the data.  

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