Despite what President Obama and the chorus of liberal democrats continue to shout from the mountaintops, wealthy Americans already pay MORE taxes than everyone else.
Accoeding to the latest Internal Revenue Service data, Americans earning more than $1 million in 2009 paid at an average income tax rate of 25 percent, while the average rate for taxpayers earning $75,000 to $100,000 was 8 percent.
In contrast, Americans making $100,000 to $200,000 paid on average 12 percent in taxes -- but this group paid a quarter of all income taxes collected in 2009, according to IRS data. Add in those making up to $500,000 -- who paid at a rate of 19 percent -- and these two groups contributed 45 percent of all income taxes collected. Americans earning more than $1 million, on the other hand, in 2009 paid just 20 percent of total taxes collected.
The richest one-fifth of Americans accounted for 86 percent of all capital gains and dividend income last year, according to preliminary projections from the Tax Policy Center, a research group and think tank. About two-thirds of that went to the richest 1 percent, and 44 percent went to the top 0.1 percent.
Under the U.S. income tax system, most of the taxes collected are supposed to be paid by the people who make the most money. Thanks to President Bush's tax cuts, that is exactly the way the system works, says the U.S. Treasury Department.
According to the Office of Tax Analysis, the U.S. individual income tax is "highly progressive," with a small group of higher-income taxpayers paying most of the individual income taxes each year.
- In 2002 the latest year of available data, the top 5 percent of taxpayers paid more than one-half (53.8 percent) of all individual income taxes, but reported roughly one-third (30.6 percent) of income.
- The top 1 percent of taxpayers paid 33.7 percent of all individual income taxes in 2002. This group of taxpayers has paid more than 30 percent of individual income taxes since 1995. Moreover, since 1990 this group’s tax share has grown faster than their income share.
- Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all individual income taxes. In all years since 1990, taxpayers in this group have paid over 94 percent of all individual income taxes. In 2000, 2001, and 2002, this group paid over 96 percent of the total.
Treasury Department analysts credit President Bush's tax cuts with shifting a larger share of the individual income taxes paid to higher income taxpayers. In 2005, says the Treasury, when most of the tax cut provisions are fully in effect (e.g., lower tax rates, the $1,000 child credit, marriage penalty relief), the projected tax share for lower-income taxpayers will fall, while the tax share for higher-income taxpayers will rise.
- The share of taxes paid by the bottom 50 percent of taxpayers will fall from 4.1 percent to 3.6 percent.
- The share of taxes paid by the top 1 percent of taxpayers will rise from 32.3 percent to 33.7 percent.
- The average tax rate for the bottom 50 percent of taxpayers falls by 27 percent as compared to a 13 percent decline for taxpayers in the top 1 percent.
The White House has announced it will lobby Congress to pass legislation making most of President Bush's tax cutting measures permanent.
So enough already!