MD-90
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IRS Stats: How Much Do You Pay?

Sun Dec 08, 2002 2:33 pm

The top 1% of wage earners, who earn 20.81% of national income, pay 37.42% of the income tax.

The top 5%, who earn 35.2% of national income, pay 56.47% of the income tax.

The top 10%, who earn 46.01% of national income, pay 67.33% of the income tax.

The top 25%, who earn 67.15% of national income, pay 84.01% of the income tax.

The top 50%, who earn 87.01% of national income, pay 96.09% of the income tax.

The bottom 50%, pay 3.91% of the income tax.

The top 50% were those individuals or couples filing jointly who earned $26,000 and up in 1999. The top 1% earned $293,000 or more.

These are the stats from the IRS itself, by the way.
 
delta-flyer
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RE: IRS Stats: How Much Do You Pay?

Sun Dec 08, 2002 2:54 pm

What is your point -- that upper income people are unfairly taxed?

If so, read an Economics 101 textbook on the subject of "principles of tax equity" paying particular attention to the "ability to pay" and "equal sacrifice" principles. Consideration should also be given to indirect and other taxation that is paid by consumers irregardless of personal income -- such as sales taxes and taxes included in the cost of goods and services, all of which are disproportionately borne by lower income people.

The IRS stats only include direct income taxes.

Pete
"In God we trust, everyone else bring data"
 
MD-90
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RE: IRS Stats: How Much Do You Pay?

Sun Dec 08, 2002 3:46 pm

It's called socialistic redistribution of wealth.

I don't know how it was when you took Economics 101, but now it's divided into Macroeconomics and Microeconomics, and I've only taken macroecon so far, and as an aerospace engineering it is extremely doubtful I'll ever take micro.
 
Guest

RE: IRS Stats: How Much Do You Pay?

Sun Dec 08, 2002 4:42 pm

MD-90 wrote:

"It's called socialistic redistribution of wealth."


Absolutely.  Yeah sure And Bill Clinton was a closet socialist, the Democrats are all Marxist revolutionaries at heart, the EU will transform Europe into a far-left dictatorship, a UN-backed One World Government will take away our sovereignty, the rich will be taken out and shot, and unpatriotic liberals and will take over the world, right? Give me a break.

Seriously, the US, with its long history of free market policies, has far fewer "wealth redistribution" programs than most other countries. Depending on your point of view, this may be good or bad (I see it both ways), but the US is definitely not socialist... not even close. You may disagree with the current tax system, but calling it something that it is clearly not doesn't help your cause.
 
delta-flyer
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Joined: Mon Jul 30, 2001 9:47 am

RE: IRS Stats: How Much Do You Pay?

Mon Dec 09, 2002 1:14 am

MD-90 -- it's Macroeconomics, and you would probably have learned this concept had you been reading the book and/or paying attention.

It has nothing to do with redistributing wealth! It has only to do with fairness and ability to pay. How much can you tax someone making $20K a year? 200K? $2M?

I am an aerospace engineer, and I took the trouble to get an MBA just so I would be aware of what makes our world go around. You should read up on economics before you make statements like "It's called socialistic redistribution of wealth." This goes for PHX also.

I know it's popular in Mississippi (before you get all wound up, I live here, too) to call everything you don't like "socialism" but that does not necessarily make it so!

Pete
"In God we trust, everyone else bring data"
 
KLAX
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RE: IRS Stats: How Much Do You Pay?

Mon Dec 09, 2002 1:48 am

You'd rather tax a guy making 20K a year half his salary then someone making 500Mill a year?
The guy with 500 Mil can easily live off 250 buddy  Big grin The guy on 20K would probably starve off 10K.

-Clovis
 
delta-flyer
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Joined: Mon Jul 30, 2001 9:47 am

RE: IRS Stats: How Much Do You Pay?

Mon Dec 09, 2002 3:47 am

KLAX ... Great post -- That's exactly my point -- if the $500K guy pays $250K, his sacrifice may be the same as the $20K guy paying $1K.

Pete
"In God we trust, everyone else bring data"
 
delta-flyer
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Joined: Mon Jul 30, 2001 9:47 am

RE: IRS Stats: How Much Do You Pay?

Mon Dec 09, 2002 3:47 am

KLAX ... Great post -- That's exactly my point -- if the $500K guy pays $250K, his sacrifice may be the same as the $20K guy paying $1K. That is, in essence, the principle of tax equity.

Pete
"In God we trust, everyone else bring data"
 
Guest

RE: IRS Stats: How Much Do You Pay?

Mon Dec 09, 2002 4:00 am

Delta-flyer wrote:

"This goes for PHX also."


Actually, I agree with you 100%, Delta-flyer. Maybe I didn't make my sarcasm obvious enough in my post...
 
Guest

RE: IRS Stats: How Much Do You Pay?

Mon Dec 09, 2002 4:04 am

Just to make it crystal clear, this is what I said to MD-90 (the non-sarcastic part):

"You may disagree with the current tax system, but calling it something that it is clearly not [socialistic redistribution of wealth] doesn't help your cause."
 
MD-90
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RE: IRS Stats: How Much Do You Pay?

Mon Dec 09, 2002 4:42 am

Bah, we may not be choking on socialistic economic policies like Sweden or Germany is, but if it ain't socialism, then what is it? Fair, I suppose? Or maybe, fairer, back when the income tax on the highest wage earners was 90%?
 
MD-90
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RE: IRS Stats: How Much Do You Pay?

Tue Dec 10, 2002 4:42 am

KLAX, of course not.

And Delta-Flyer, I don't know about you, but if I made $500,000/year, and the government wanted to tax me at a rate of 50%, while the $20,000/year worker is only taxed at $1,000 (which is a 5% tax rate), I'd be upset if I was the guy making half a million. Unless you're born with a trust fund, it's dang hard to make half a million a year. What if you're a doctor, who has shelled out great amounts of money for medical school, and now has to pay for malpractice insurance? How much do you think he'll have left after that 50% tax?

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