Results....(and my estimate was closest)

[reprobayt]

The argument came up when I said that a large majority of people, due to lack of correct information being given in the media and such, thought that the tax burden was evenly distributed throughout the income structure.

I said, in a non-scientific poll, half the people would think the statement in the previous poll was false. My friend said only about 25% would say the statement was false...I was closest, so thanks for helping me win lunch tomorrow.

The answer:

Latest figures from the Congressional Budget Office (here is the whole report in all its' complexity):

The overwhelming majority of federal income taxes are paid by the very highest income earners.

The top 1% of income earners pay about 32% of all income taxes. The top 5% pays 51.4%. The top 10% of high income earners, pay 63.5%. The top 20% of income earners pays 78% of all federal income taxes.

The bottom four-fifths, 80% - the bottom 80% of income earners, pay about 22% of the federal income tax burden.

So in round numbers, The bottom 80% pay only 20% of the burden.

Comments

[darkmattr.livejournal.com]

What percentage of the national income to the top 20% make?

Not fair.

[reprobayt.livejournal.com]

Some numbers I cannot confirm, but found:

In 1999 - the top 20% of households was projected to receive 50.4 percent of the national income, but pay 79.9 percent of the total in total income taxes.

It only makes logical sense that the households at the bottom would make less/no money.

[ex-thevault297.livejournal.com]

*raises her hand as someone who reads Boortz and therefore of course had the correct answer*

[n3m3sis42.livejournal.com]

Bwahahaha... me too. :)

[ex-thevault297.livejournal.com]

Love your journal name. And your icon. I already know you read Boortz now -- shall we be friends?

[n3m3sis42.livejournal.com]

Aw, yay! Yes, sure. :)

Except Income Tax is less than half...

[skellington.livejournal.com]

You statement is true, but only talks about half the picture.

The last numbers I could find with a quick Google were 2000 government income numbers. That year, 1.004B was collected as income taxes, 653B as "payroll taxes", 207B as corporate income taxes. These, combined, were about 92% of the federal taxes. And these numbers exclude "business-like activities" (i.e. federal parks) which represent another 200B or so.

Income taxes in 2000 represented only 49% of the total taxes collected by the federal government.

Poor people pay Social Security Taxes (and to a lesser degree medicare taxes) at a much higher rate than those with high incomes. For example, John Edwards set up an S-Corp to funnel his lawyer income as "dividends" rather than income. He therefore didn't pay Medicare taxes on the vast majority of his earnings (while you and I pay it on the vast majority of our income). Most wealthy people receive much of their income in a form such as dividends, capital gains, etc. which are not subject to these taxes.

Corporate income taxes, as well as most of the other taxes, are also paid, directly or indirectly, by all citizens. They contribute the remaining 18% to the budget. Some of these taxes (such as the gasoline tax) are paid disproportionately (as a percentage of income) by the middle to lower incomes.

So while it is true that the bottom 80% pay only 20% of the INCOME TAX burden, they pay a somewhat higher percentage of the TAX burden. (And I haven't seen any liberal analysis showing how much, because liberals apparently have problems with math.)

Re: Except Income Tax is less than half...

[vernard.livejournal.com]

and mind you, Mr. Boortz doesn't even come close to discussing this most of the time. I wonder why.

I hate getting half the story.

[nyssimi.livejournal.com]

I liked this essay, How Taxes Work at http://right-thoughts.us/index.php/weblog/taxes/