Political Quickie: Who pays income tax?

The Tax Foundation has recently released its summary of the IRS’s data on the 2012 tax year. Click here for the report.

There are two big takeaways:

97.2% The percentage of taxes paid by the top 50% of individual taxpayers
2.8% The percentage of taxes paid by bottom 50%

This tells all we need to know about the progressivity of the federal income tax system. A further tidbit useful in gentle discussions with progressives is this:

38.1% The percentage of all taxes paid by the top 1%

Given that above a certain point tax rate increases produce declining revenues, if government continues to grow, the bottom 50% will start having to pay more. At that point the free ride ends. Shouldn’t we all be pressing for a reduction in the size and scope of government?   Troglo

Troglo

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