April 18, 2010

Soak 'Em




In 2006 (the latest data available), the 40% highest earning American Households paid 86% of Total Federal Tax Liabilities. The 60% lowest earning households paid just 14%. The 40% highest earners have never paid such a large share of total federal tax liabilities as far back as we found tax burden data (back to 1979). You can see that there has been a steady erosion in the bottom 60%'s contribution to total federal taxes. We don't show it in the chart below, but in case you're wondering, the picture is even worse for the top 10% of Americans. The top 10% of Americans paid 55.4% of total federal taxes, which was a higher share than at any time in the data period going back to 1979. In 1979 they paid 40.7% of total federal taxes, so the top 10% highest earners have taken on a substantially larger share of total taxes, ie. funding of the federal government, over time.

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