“TOP 20 PER CENT PAY 95% OF TAXES, MIDDLE CLASS ‘SINGLE DIGITS'” – But tax the rich:
OMB later cited internal data to the Washington Examiner that said the top 20 percent of people to pay income taxes account for 94.8 percent of those taxes in 2016.
That appears to be a jump from just a few years ago. In 2015, the Wall Street Journal reported that the top 20 percent of income earners paid 84 percent of income taxes.
If you break the income tax universe into what we call quintiles, so equal sized 20 percent columns, the first two columns, the first quintile and the lower quintile, don’t pay any taxes at all. In fact they net positive. We pay them when they file a tax return.
That middle quintile, which you might describe, some people do, as middle class, pays an effective rate in the low single digits. And all of the taxes are paid by folks in the top two quintiles, and that last quintile pays almost fully, 95 percent I think, of the taxes.
If we increase the taxes on the top income earners, they might eventually account for 100% of taxes paid. Will that be finally considered the “fair share”? Share-wise probably, quantity-wise probably not. The “fair share” crowd would probably also like “the rich” to pay even an even bigger 100% – maybe 150 or 200%.