The Top 20% of Households Pay 88% of Federal Income Taxes

[Anti Federalist]

The Top 20% of Households Pay 88% of Federal Income Taxes

https://www.atr.org/top-20-households-pay-88-federal-income-taxes-0

Posted by Alex Hendrie on Monday, January 7th, 2019, 2:02 PM

Congresswoman Alexandria Ocasio-Cortez (D-NY) recently proposed a 70 percent top federal income tax rate. This would nearly double the current top tax bracket, which is currently at 37 percent. Ocasio-Cortez fails to mention that the tax code is already steeply progressive.

According to the Congressional Budget Office:

-The top one percent of households pay 39.4 percent of federal income taxes and 26.2 percent of total federal taxes.

- The top 20 percent of households pay 88.1 percent of federal income taxes and 69.5 percent of total federal taxes.

- The top one percent of households pay an average income tax rate of 24 percent while the middle quintile pays an average income tax rate of 3 percent.

- The top one percent of households pay an average total tax rate of 33.3 percent while the middle quintile pays an average total tax rate of over 14 percent.

- The top 20 percent of households pay an average total tax rate of 26.7 percent while the middle quintile pays an average total tax rate of 14 percent.

[Anti Globalist]

And of course the American people don't care one bit. As long as they got a house, food, job, and the TV works, their life is going great as far as their concerned.

[phill4paul]

That's what, household incomes around $120k are paying 80% for the 20% under $120k and it's still not enough?

[Krugminator2]

"The Middle Class, Not ‘the Rich,’ Is Where the Money Lies
The top tax rates in comparable Anglosphere countries such as Britain, Canada, Australia, and New Zealand are 45 percent, 33 percent (federal), 45 percent, and 33 percent respectively. There is no 70 percent rate in any of those countries — on millionaires, on billionaires, or otherwise. Hell, there is no 50 percentrate, either.

Why? Well, because that’s where the money is. The U.K.’s 40 percent tax rate kicks in at just $59,178 (I’ve adjusted for U.S. dollars, here and below), and its 45 percent rate starts at just $191,521. In addition, Britain has a 20 percent value-added tax that makes pretty much everything annoyingly expensive. Australia charges 32.5 percent at $26,377, 37 percent at $64,162, and 45 percent at $128,324. New Zealand’s top rate of 33 percent is levied on earnings above $47,319, while Canada charges 26 percent after $69,794, and 33 percent after $154,153 (this is on top of considerable provincial income taxes)."


https://www.nationalreview.com/corner/alexandria-ocasio-cortez-flawed-tax-plan/

[oyarde]

"The Middle Class, Not ‘the Rich,’ Is Where the Money Lies
The top tax rates in comparable Anglosphere countries such as Britain, Canada, Australia, and New Zealand are 45 percent, 33 percent (federal), 45 percent, and 33 percent respectively. There is no 70 percent rate in any of those countries — on millionaires, on billionaires, or otherwise. Hell, there is no 50 percentrate, either.

Why? Well, because that’s where the money is. The U.K.’s 40 percent tax rate kicks in at just $59,178 (I’ve adjusted for U.S. dollars, here and below), and its 45 percent rate starts at just $191,521. In addition, Britain has a 20 percent value-added tax that makes pretty much everything annoyingly expensive. Australia charges 32.5 percent at $26,377, 37 percent at $64,162, and 45 percent at $128,324. New Zealand’s top rate of 33 percent is levied on earnings above $47,319, while Canada charges 26 percent after $69,794, and 33 percent after $154,153 (this is on top of considerable provincial income taxes)."


https://www.nationalreview.com/corner/alexandria-ocasio-cortez-flawed-tax-plan/

Ya , reading that makes canada look like he real " bargain " but there are so many other taxes it is bad too.

[oyarde]

So the top 2/10's pay 90 percent now , I think it used to be 80 .

[oyarde]

Anyway , thanks to any of you in that percentile for funding the country. Now that I am retired I no longer pay .

[jkr]

if we weren't taxed we could literally repair this nation, and my house...but they arent exactly interested in this nation or my house

they
live

we
sleep
are eaten

[devil21]

The biggest difference is that the top tax brackets pays a smaller percentage of gross since most of their taxable earnings comes from capital gains (stock portfolios, real estate, etc) instead of "income". The lower and middle class pay a smaller total overall but they pay a bigger chunk individually, which keeps them firmly in those brackets as the collective "laboring class". What people that insist on playing by the rules should do is incorporate themselves (register your name as a business entity) and then take advantage of the various corporate tax write-offs that businesses are eligible for. IOW, change the legal category that you labor under. Then you can deduct expenses, for example, just like any other business can.

[oyarde]

The biggest difference is that the top tax brackets pays a smaller percentage of gross since most of their taxable earnings comes from capital gains (stock portfolios, real estate, etc) instead of "income". The lower and middle class pay a smaller total overall but they pay a bigger chunk individually, which keeps them firmly in those brackets as the collective "laboring class". What people that insist on playing by the rules should do is incorporate themselves (register your name as a business entity) and then take advantage of the various corporate tax write-offs that businesses are eligible for. IOW, change the legal category that you labor under. Then you can deduct expenses, for example, just like any other business can.

That is pretty much why I pay nothing now that I am retired . All of my income comes in under three businesses that I can deduct all expenses for . I will never pay again. I just used the rules they make to pay none .

[devil21]

That is pretty much why I pay nothing now that I am retired . All of my income comes in under three businesses that I can deduct all expenses for . I will never pay again. I just used the rules they make to pay none .

That's smart.

Additionally, the upper tax brackets keep most assets in trusts and/or under the names of their businesses instead of in their personal name. For example, drive the car that's registered to the business, then maintenance expenses and depreciation can be deducted from the business taxes instead of paying them out of pocket with no deductions when it's registered in your name. Billionaires don't "own" the jets they fly all around in. Their businesses and/or trusts do. They just use them.

[enhanced_deficit]

This if confirmed as non-fakenews would help make the case that MAGA's tax cut for the Richest in America was the morally right thing to do.

But two and two don't seem to add up in some cases, or this was more of an exception:

Jared Kushner Paid No Federal Income Tax for Years, Documents Suggest
Confidential documents reviewed by The Times indicate that Jared Kushner, President Trump’s son-in-law and adviser, probably paid little or no income tax from 2009 to 2016.
Oct. 13, 2018
Over the past decade, Jared Kushner’s family company has spent billions of dollars buying real estate. His personal stock investments have soared. His net worth has quintupled to almost $324 million.
https://www.nytimes.com/2018/10/13/business/jared-kushner-taxes.html


That said, stats like "top 5% have 90% of wealth" (example) if highlighted too much can encourage socialistic movements especially in times of economic turmoil when people working 2 jobs sometimes can't support their families while paying taxes at higgher rate than some Wall Street billionaires.


Pending Validation

Top 20% of Households have 0.1% Representation in US Military

[pcosmar]

So you are working to pay the taxes of living.

sounds like slavery to me.

[oyarde]

So you are working to pay the taxes of living.

sounds like slavery to me.

I agree

[Brian4Liberty]

These statistics are always a double edged sword. They are often used to say that certain people pay most of the taxes. On the other side, these stats are also evidence of an extreme wealth gap.

And let’s not forget that “individual” income tax is not the whole picture. Someone in the top 1% may have relatively small individual taxes with a higher tax rate, but the majority of their income could be sheltered in other places like trusts and corporations.

[Zippyjuan]

So are people here willing to pay more in taxes so the top 20% of earners don't have to pay so much? Do your part in the name of fairness?

Top 20% (those making over $100k a year) earn half of all income. 45% of all income tax filers paid no income tax.

If we kept spending at $4 trillion like it is today what if we go to a straight up head tax per person (everybody pays the exact same and no deficit)? No exemptions, no deduction. Each person in your family would need to come up with $12,121 a year. Would that be fair? For a family of four, that would be $48,500. With median income of $59,000, that leaves you with $11,000 a year to live on.

[oyarde]

So are people here willing to pay more in taxes so the top 20% of earners don't have to pay so much? Do your part in the name of fairness?

Top 20% (those making over $100k a year) earn half of all income. 45% of all income tax filers paid no income tax.

I worked pretty hard to get to my current rate of none .

[devil21]

This if confirmed as non-fakenews would help make the case that MAGA's tax cut for the Richest in America was the morally right thing to do.

But two and two don't seem to add up in some cases, or this was more of an exception:

Jared Kushner Paid No Federal Income Tax for Years, Documents Suggest
Confidential documents reviewed by The Times indicate that Jared Kushner, President Trump’s son-in-law and adviser, probably paid little or no income tax from 2009 to 2016.
Oct. 13, 2018
Over the past decade, Jared Kushner’s family company has spent billions of dollars buying real estate. His personal stock investments have soared. His net worth has quintupled to almost $324 million.
https://www.nytimes.com/2018/10/13/business/jared-kushner-taxes.html


That said, stats like "top 5% have 90% of wealth" (example) if highlighted too much can encourage socialistic movements especially in times of economic turmoil when people working 2 jobs sometimes can't support their families while paying taxes at higgher rate than some Wall Street billionaires.


Pending Validation

Top 20% of Households have 0.1% Representation in US Military

The people that write these articles appear to have a simple misunderstanding of how people like the Kushners operate. That, or it's intentional misdirection so that the little people don't start to question the system. "The Kushner family" doesn't buy or sell anything. THEIR BUSINESS ENTITIES AND TRUSTS DO. Legally, by the paperwork, at least. That's why Jared paid little to no income taxes. "He", meaning the legal entity "JARED KUSHNER", incurred no income and thus was not liable for any taxes. Any taxes are paid by the business entities and trusts that buy/sell/own the properties. This is generally how "wealthy" people operate. It also protects them from being sued personally into poverty. File all the lawsuits you want against Jared Kushner personally. You'll never collect anything because he's actually broke.


I read an old anecdote about Trump that explains it well. One day, Donald and little Ivanka walked out of Trump Plaza onto the Atlantic City boardwalk. A homeless man was near the door and asked Donald for a dollar. Donald declined and continued walking. Ivanka asked him, "Daddy, why didn't you give him a dollar?" Donald replied, "Ivanka, I didn't give him a dollar because he already has more money than I do."

[oyarde]

So are people here willing to pay more in taxes so the top 20% of earners don't have to pay so much? Do your part in the name of fairness?

Top 20% (those making over $100k a year) earn half of all income. 45% of all income tax filers paid no income tax.

If we kept spending at $4 trillion like it is today what if we go to a straight up head tax per person (everybody pays the exact same and no deficit)? No exemptions, no deduction. Each person in your family would need to come up with $12,121 a year. Would that be fair? For a family of four, that would be $48,500. With median income of $59,000, that leaves you with $11,000 a year to live on.

Sounds like some spending cuts are needed . I am sure congress will get right on that .

[Brian4Liberty]

The people that write these articles appear to have a simple misunderstanding of how people like the Kushners operate. That, or it's intentional misdirection so that the little people don't start to question the system. "The Kushner family" doesn't buy or sell anything. THEIR BUSINESS ENTITIES AND TRUSTS DO. Legally, by the paperwork, at least. That's why Jared paid little to no income taxes. "He", meaning the legal entity "JARED KUSHNER", incurred no income and thus was not liable for any taxes. Any taxes are paid by the business entities and trusts that buy/sell/own the properties. This is generally how "wealthy" people operate. It also protects them from being sued personally into poverty. File all the lawsuits you want against Jared Kushner personally. You'll never collect anything because he's actually broke.


I read an old anecdote about Trump that explains it well. One day, Donald and little Ivanka walked out of Trump Plaza onto the Atlantic City boardwalk. A homeless man was near the door and asked Donald for a dollar. Donald declined and continued walking. Ivanka asked him, "Daddy, why didn't you give him a dollar?" Donald replied, "Ivanka, I didn't give him a dollar because he already has more money than I do."

Now let’s imagine a hypothetical situation. Imagine that personal/individual income taxes were eliminated, and all other taxes remained the same. How long would it take before “wealthy” people all of a sudden started filing astronomical annual personal incomes?

[devil21]

Now let’s imagine a hypothetical situation. Imagine that personal/individual income taxes were eliminated, and all other taxes remained the same. How long would it take before “wealthy” people all of a sudden started filing astronomical annual personal incomes?

Since FICA, et al are capped relatively low, they'd probably not file anything and instead send a check to the Treasury for more than their calculated withholdings would otherwise be and consider the rest a "gift" to the Treasury to kindly fuck off.