Monday, December 17, 2007

Tax share of rich continues to grow

Link
  • For 2005, the richest 1% paid about 39% of all income taxes that year.
  • The richest 5% paid a little less than 60%, and the richest 10% paid 70%.
  • The richest 1.3 million tax-filers -- those Americans with adjusted gross incomes of more than $365,000 in 2005 -- paid more income tax than all of the 66 million American tax filers below the median in income; ten times more.

For the political left and most of the media, this means only that the rich are getting richer. However:

  • The rich showed more rapid gains in reported income shares in the 1990s than in the first half of this decade.
  • The share of the richest 1 percent jumped to 20.8% of total income in 2000, from 14% in 1990, but increased only slightly to 21.2% in 2005.
  • Notably, however, the share of taxes paid by the top 1% has kept climbing this decade -- to 39.4% in 2005, from 37.4% in 2000.
  • The share paid by the top 5% has increased even more rapidly.