WELL, THAT'S RICH
The Richest One Percent In The US Don't Pay 40 Percent Of The Taxes
A statistic frequently cited by conservatives fails to address the actual truths about America's tax system.
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The Lede
While factually true, the statistic that the top one percent in the country pay 40% of all income taxes doesn't acknowledge the proportion of income the richest people make in relation to the rest of the population. More importantly, citation of the statistic also ignores the fact that income taxes are just one component in the federal tax system and that the federal tax system is also just one part of the overall tax system.
Key Details
- Currently, the American tax system as a whole is slightly progressive, with the richest one percent earning about 21 percent of the income and paying 24 percent of the taxes.
- But while the income tax system is progressive, other components of the tax system, such as the payroll tax and sales tax, are regressive.
- There is much evidence that supports the idea that we can raise taxation levels on the rich without compromising economic growth.
