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?