The high share of taxes paid by one-percenters is
due partly to their share of income, but also to the progressive tax
code, in which higher earners generally pay higher rates. The one
percenters' share of taxes is 2.7 times their share of income in taxes.
There is no comparable
historical data for the one-percenter tax payments prior to 2012. Yet
the Congressional Budget Office, using a different calculation than the
Tax Policy Center, found that the share of federal taxes paid by the top
1 percent of earners has increased dramatically since 1979 as the
one-percenter's share of earnings has also gone up.
In 1979, the top one percenters earned 8.9 percent of pretax income and paid 18 percent of federal income taxes. In 2011, the top 1 percent earned 14.6 percent of income and paid 25.4 percent in 2011 of federal income taxes.
The CBO said that the average federal income tax rate paid by the top 1 percent has also dropped since 1979—falling from 22.7 percent in 1979 to 20.3 percent in 2011.
In 1979, the top one percenters earned 8.9 percent of pretax income and paid 18 percent of federal income taxes. In 2011, the top 1 percent earned 14.6 percent of income and paid 25.4 percent in 2011 of federal income taxes.
The CBO said that the average federal income tax rate paid by the top 1 percent has also dropped since 1979—falling from 22.7 percent in 1979 to 20.3 percent in 2011.
Whatever the measure, the numbers show just how
dependent the U.S. has become on the earnings of the wealthy. The U.S.
is more dependent on the income tax than other countries, with 37
percent of total government revenue coming from the income tax, compared
with 24 percent in other countries. Those countries depend more on
consumption taxes and other sources of revenue.
With U.S. income taxes more dependent on the wealthy—and those incomes more dependent on the stock market—the U.S. government should hope for a continued rise in stocks to keep its coffers full.
With U.S. income taxes more dependent on the wealthy—and those incomes more dependent on the stock market—the U.S. government should hope for a continued rise in stocks to keep its coffers full.
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