Showing posts with label tax fairness. Show all posts
Showing posts with label tax fairness. Show all posts
Sunday, February 19, 2023
Wednesday, November 19, 2014
20% of Households Bear 100% of Net Tax Burden
We have already covered the fact that 20% of US households pay 94% of Federal income taxes. The Congressional Budget Office's latest report "The Distribution of Household Income and
Federal Taxes" provides new insight into how the burdens of taxation and the distribution of government payments fall. Mark Perry created this useful summary chart from that data. What it shows is that the entire net burden of the government taxation and redistribution machine falls on the 20% of households with the highest market income (roughly $80,000+ of Adjusted Gross Income) and that 60% of households are net recipients of government monies. But according to the President that top quintile of earners just isn't paying their "fair share".
Note: Transfer payments are payments and benefits from federal, state and local governments including Social Security, Medicare and unemployment insurance., Federal taxes paid by households include income, payroll, corporate, and excise taxes.
Federal Taxes" provides new insight into how the burdens of taxation and the distribution of government payments fall. Mark Perry created this useful summary chart from that data. What it shows is that the entire net burden of the government taxation and redistribution machine falls on the 20% of households with the highest market income (roughly $80,000+ of Adjusted Gross Income) and that 60% of households are net recipients of government monies. But according to the President that top quintile of earners just isn't paying their "fair share".
Note: Transfer payments are payments and benefits from federal, state and local governments including Social Security, Medicare and unemployment insurance., Federal taxes paid by households include income, payroll, corporate, and excise taxes.
Friday, December 28, 2012
The Price of Milk
Nolan Finley, in his Detroit News column, wonders what would happen if milk were priced on the same basis as the federal government uses to structure income taxes.
The average price of milk is $2.49/gallon, so everyone (ignoring for a moment the 47 million people on Food Stamps) now pays $2.49. But if the government applied it's unique way of thinking here, 40 percent of the public wouldn't pay a dime for it. In fact, the government would actually PAY them $1 for every gallon of milk they took home. At the other extreme, 1 percent of the public would be charged $109.81 per gallon for milk. Of course, these people would buy a lot less milk at that price, and most of the scheme would need to be financed by issuing milk bonds to China.
The current tax system is, indeed, unfair, but not because the wealthy don't pay enough.The Rich are paying more for their government milk than it's worth so that most others can pay less. Instead of saying thank you, we're trying to milk them dry.
The average price of milk is $2.49/gallon, so everyone (ignoring for a moment the 47 million people on Food Stamps) now pays $2.49. But if the government applied it's unique way of thinking here, 40 percent of the public wouldn't pay a dime for it. In fact, the government would actually PAY them $1 for every gallon of milk they took home. At the other extreme, 1 percent of the public would be charged $109.81 per gallon for milk. Of course, these people would buy a lot less milk at that price, and most of the scheme would need to be financed by issuing milk bonds to China.
The current tax system is, indeed, unfair, but not because the wealthy don't pay enough.The Rich are paying more for their government milk than it's worth so that most others can pay less. Instead of saying thank you, we're trying to milk them dry.
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