- Rich paying largest share of federal taxes since 1979
- Top 1% of earners pay over 35% of income to Washington
- Bottom 20% pay nothing
A new study published by the Tax Policy Center in Washington D.C. finds that the rich are paying the largest share of federal income taxation in decades, which puts into question Obama’s claim that the rich need to pay their “fair share” to fix our government’s debt problem.
Earners in the top 1% pay an average of 35% of their income to the federal government, the study found. The bottom 20% pay nothing, and often, receive more in tax rebate checks than they paid into the system. This amounts to a deficit in tax payments, and essentially, an additional yearly paycheck. Historically, lower income earners are paying lower taxes than ever.
“My sense is that high-income people feel abused by being targeted always for more taxes,” said Roberton Williams of the Tax Policy Center. Not only do higher income earners FEEL targeted by our tax system, they ARE targeted with high, punitive taxes – revenues that are then either wasted or lost within the incomprehensible layers of our government bureaucracy.
The Congressional Budget Office recently predicted that government revenues in 2013 will set new records. Add in the fact that the large majority of those revenues will come from higher income earners, and political rhetoric that demands the rich “pay their fair share”, it does not take much of an imagination to realize just how devastating our tax system is to our nation’s future growth. No wonder the wealthy maintain overseas bank accounts. No wonder businesses outsource labor to other nations. If those resources are kept within the borders of the United States, they are confiscated!
It seems the rich are paying their “fair share” after all. When nearly 1 in 5 Americans pay nothing in taxes at the end of the year, it casts a serious shadow over the merits of progressive taxation and the class-based society that results from those tax tiers.