[This was sent to me by a dear friend. Avery smart and educated man, with very strong fiscally conservative beliefs. He did his homework on income tax, and this is what he found. If you’re short on time, just look at the numbered points and graphs.]

Discussion:  

At the outset, and before I’m accused of bias or the use of pejorative terminology in this discussion, I will say that I have chosen the terms “Conservative” and “Progressive” out of respect for the terminology of self-description of each person/group.  If you find that you are neither, please do not be offended that you have been ignored.  Rather, simply consider the validity of the facts asserted.

I’ve heard allusion to the facts and figures set forth below discussed, parried and thrust in cocktail party, political and pseudo-intellectual debates, without substantiation, for years.   

Typically, a Conservative will cite the statistics to support the notion that the “rich” already pay their “more than fair share” of the taxes used for the support of this country and further increased taxation, therefore, is inequitable. 

In response, again typically, a Progressive will deny or ignore the validity of the facts because, if true, they would prove most inconvenient to their argument that the “rich” do not pay their fair share of the tax burden and ought to be subjected to increased income taxes…in the “fairness” they define.  If accepted, a Progressive, typically, will then attempt to dilute the significance of the stark reality of the disproportionate burden of income taxation by reciting the “other” taxes which are paid by the “average man”(read…anyone other than the “rich”).  Most importantly, this argument belies the reality that all taxpayers, rich, average and “poor” alike, pay the same taxes at the same rate, i.e sales tax, FICA, FUTA, SUTA et al. except income taxes.

 Out of more than a little curiosity and in a desire to satisfy myself of the intellectual integrity of these respective positions, I did a little research and lo and behold…the facts won!

Bottom line: 

1. The top 1% of income earners pay 40.4% of all income taxes paid.
2. The top 5% of income earners pay 60.6% of all income taxes paid.
3. The top 10% of income earners pay 71.2% of all income taxes paid.
4. The top 25% of income earners pay 86.6% of all income taxes paid.
5. The top 50% of income earners pay 97.1% of all income taxes paid.

And Finally…

1. The bottom 50% of income earners pay 2.9% of all income taxes paid.

The words of a wise sage, recently quoted in the midst of the Health Care debate by Harry Reid (D), Senate Majority Leader, bear witness to the truth upon which I think we all agree:

You are entitled to your opinion, BUT

You are not entitled to your own facts…

Would that we might all consider the facts of the Reality of the Tax Burden instead of the blind allegiance to demagoguery if we genuinely seek resolution of the issues of our economy, profligate spending, national deficit, national debt and the future of our beloved children, grandchildren and the destiny of our country.  

And in that process, I submit that we consider the prospect of cutting spending…yes, including entitlement programs…instead of increasing anyone’s tax burden.

Please let us not be know as “The WORST Generation”.

Please forward this information to anyone you believe might find a few facts helpful to an understanding of the Reality of the Tax Burden

Who Makes What and Who Pays What, 2007

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http://www.koaradio.com/cc-common/mlib/668/09/668_1253724223.xls