According to 2007 IRS data and some highlights from The Tax Foundation, here are some facts about who pays what when it comes to income taxes:
The top 1% earn 22.8% of all the adjusted gross income. These people pay 40.4% of all the federal income taxes. To make the top 1%, you must have earned $410,100.
You: Gee, Michael, I just missed the cut-off.
You: What do you think?
I know people, personally, who are in the top 1% and who live paycheck to paycheck.
You: Get out of here.
No doubt. Remember, income does not equal wealth. Furthermore, it why, despite all these statistics seeming to tell you otherwise, the rich don’t necessarily pay more in tax than you do.
The top 5% made 37.4% of all AGI. They paid 60.6% of all the income tax. To reach the top 5%, you needed to have earned $160,000 or more.
The top 10% made 48% of all the income and paid 71.2% of all the tax. To make the top 10%, your earnings needed to have reached more than $113,000.
The bottom 50% paid less than 3% of the income taxes. However, they paid a ton of Social Security and Medicare tax (payroll taxes) which are not, technically, income taxes.
You: They sure feel like income taxes to me.
I agree. Such are the joys of statistics. So, your thoughts on these figures? What feels good? What bothers you?