Thread by @Brian_Riedl, Seeing a lot of "The Rich Don't Pay Taxes" takes tonight. So [...]

Brian Riedl 🧀

Brian_Riedl

Seeing a lot of "The Rich Don& #39;t Pay Taxes" takes tonight. So let& #39;s go to the CBO, IRS, and OECD data.

These are based on actual taxes paid - including loopholes.

Clearly, federal tax rates rise significantly with income. (1/)

In 2016, the top 1% paid an effective 35% total tax rate - same as in 1979 when we had 70% marginal tax brackets.

(Rates are surely a bit lower with the 2017 tax cuts, but this is the latest CBO data) (2/)

Overall, the top-earning 20% pays 69% of all total federal taxes (3/)

And the top-earning 20% pays 87% of all federal income taxes.

The top-earning 40% pay 101% of all federal income taxes. (4/)

Nope, this is not merely a function of the rich earning a higher share of the income than earlier.

Even if you divide each group& #39;s share of all federal taxes by its share of the income, the federal tax code has become more progressive (5/)

Granted this is from 2008, but OECD data ranks the U.S. as the most progressive income tax in the OECD - even adjusting for differences in income inequality. And this understates the gap because it doesn& #39;t count Europe& #39;s regressive VAT taxes. (6/)

No, none of this suggests that the wealthy& #39;s taxes cannot rise, or loopholes cannot be closed.

The point is that we are stating from the OECD& #39;s most progressive tax code - and one that becomes more progressive each decade (7/7)

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