The Truth About Taxes - Part 1

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The Truth About Taxes - Part 1

  1. 1. Taxes - Who Really Pays What? Part 1 a non-partisan look at the real facts behind taxes in the U.S. ?
  2. 2. How much do we collect? Federal Government Current Receipts (shaded areas equal recessions) Source: U.S. Dept of Commerce, Bureau of Economic Analysis 3.0Thousands We collect about 2.5 $2.5 Trillion in tax revenue every year. Thats 2,500 billion 2.0 dollars. 1.5 1.0 0.5 0.0 May-49 Apr-52 Nov-31 Aug-40 Sep-37 Jul-43 Feb-58 Dec-28 Jun-46 Mar-55 Oct-34 Jan-61 Jan-64 Jan-67 Jan-70 Jan-73 Jan-76 Jan-79 Jan-82 Jan-85 Jan-88 Jan-91 Jan-94 Jan-97 Jan-00 Jan-03 Jan-06 Jan-09 Jan-12 Jan-15
  3. 3. Where does that money come from? Federal Government Revenue by Source Of the $2.5 Business and OtherAd-Valorem Taxes trillion, only 57% or Revenue 4% 4% $1.44 trillion comes from personal income taxes. Most of the rest comes from Social Insurance Taxes like Social Insurance Taxes Income Taxes SSI. 35% 57% Source: U.S. Dept of Commerce, Bureau of Economic Analysis
  4. 4. What percent does the Top 50% pay? Share of Total Income Taxes Paid - Top 50%100.00% Source: IRS, Tax Foundation Here are the facts: 90.00% The Top 50% of tax 80.00% payers, pay more than 95% of all the 70.00% income taxes paid in Top 50% this country. 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Bottom 50% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  5. 5. The Top 25%? Share of Total Income Taxes Paid - Top 25%100.00% Source: IRS, Tax Foundation 90.00% 80.00% 70.00% The Top 25% pay almost 90% of all the 60.00% income tax paid. Top 25% 50.00% 40.00% 30.00% 20.00% 10.00% Bottom 75% 0.00% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  6. 6. The Top 10%? Share of Total Income Taxes Paid - Top 10%100.00% Source: IRS, Tax Foundation 90.00% 80.00% The Top 10% are responsible for just 70.00% over 70% of all taxes Top 10% paid. 60.00% 50.00% 40.00% 30.00% 20.00% Bottom 90% 10.00% 0.00% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  7. 7. What about the Top 5%? Share of Total Income Taxes Paid - Top 5%100.00% Source: IRS, Tax Foundation 90.00% 80.00% 70.00% The Top 5% pay Top 5% slightly under 60%. 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% Bottom 95% 0.00% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  8. 8. Finally, what does the 1% pay? Share of Total Income Taxes Paid - Top 1%100.00% Source: IRS, Tax Foundation The Top 1% pay just 90.00% under 40% of all the Top 1% income taxes paid in 80.00% this country. 70.00% Over time, each of these amounts paid 60.00% has increased. 50.00% Does it make sense? 40.00% 30.00% 20.00% Bottom 99% 10.00% 0.00% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  9. 9. Do the rich really pay more than they should? The rich hack and cough about shouldering an unfair amount of the tax burden. The 99% claim the rich don’t pay nearly enough. Fair is an emotionally relative term that has little to do with facts. Here at SFE, we deal with facts. So, in Part 2 we will take a look at 1. What level of income does it take to be “rich”? 2. What share of the total dollar income does each percentile earn? 3. How do the additional incomes compare to the additional tax burdens?

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