The Top 10 Percent of Income Earners Paid 71 Percent of Federal Income Tax
Posted by iusbvision on March 26, 2011
You can look at the 2010 Budget Chart Book HERE. Just click on the tabs near the top of the web page for the categories and then you will see sub-categories allowing you to examine almost any meaningful statistic imaginable.
Be sure to look at this chart right HERE to find out just who it is that have been paying taxes and you will see that the top 10% of wage earners paid 71% of federal income tax. But there are two very important thing you should know about this stat.
Starting in 2008 and more so today, this number is going down and more tax burden is being transferred away from the wealthy and investor and production classes. Why? because when you have a government that is this active and when you have this level of economic and regulatory and fiscal uncertainty those who can invest or take risk park their money so it is not taxed or they invest it in a safe place like China, where the leaders have some economic common sense. As a result the tax burden is transfered to the middle class, working poor and small businesses.
To understand how this works in detail please see the following link – Video: How Tax Cuts Work in Our Tax System
The other thing you should know is that for the super rich and the very well connected it does not matter what the wage earner (small business) tax rate is, because they have loopholes in the 6o,000 page tax code made for them and in the case of those like John and Teresa Kerry, or George Soros, much of their income is defined as either non taxable or not taxable at the wage earner rate. Now what party has been saying that we need to have a flatter and more simple tax code to help avoid this problem?