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Seeing a lot of "The Rich Don't Pay Taxes" takes tonight. So let'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/)
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/)
(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/)
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's share of all federal taxes by its share of the income, the federal tax code has become more progressive (5/)
Even if you divide each group'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't count Europe's regressive VAT taxes. (6/)
No, none of this suggests that the wealthy's taxes cannot rise, or loopholes cannot be closed.
The point is that we are stating from the OECD's most progressive tax code - and one that becomes more progressive each decade (7/7)
The point is that we are stating from the OECD's most progressive tax code - and one that becomes more progressive each decade (7/7)
