Who pays tax in America? Of individual (1040 returns) taxpayers, the distribution of taxes is interesting (2009 returns):
|Distribution of Taxes|
Top percentile of taxpayers
|Percent of Federal|
Income Taxes Paid
|Minimum Adjusted Gross Income at this level|
|On the other end of the spectrum, the bottom 50% of taxpayers….||Paid 2.25% of the total|
Federal tax bill
What does this mean? The top 10% of American earners pay 70% of the taxes, while the bottom 50% of earners pay only 2.25% of taxes. Is this fair? The answer depends upon who’s doing the talking. In light of conversations in Congress regarding raising taxes on the wealthy, I thought this was worth sharing.
This information is available in a number of spots – I am using the Kiplinger Tax Letter, Vo. 86, No. 21 (October 14, 2011) as my source material.