Wednesday, July 07, 2010

Charts of the Day

President Obama wants the rich to pay more taxes. So does Obama supporter Warren Buffett, arguing that the wealthy are undertaxed.

I've repeatedly disagreed. So here's the latest update from the Congressional Budget Office, with 2007 data:
The federal tax system is progressive--that is, average tax rates generally rise with income. Households in the bottom fifth of the income distribution paid 4.0 percent of their income in federal taxes, the middle quintile paid 14.3 percent, and the highest quintile paid 25.1 percent. Average rates continued to rise within the top quintile: The top 1 percent faced an average rate of 29.5 percent.

source: CBO Graphics

Higher-income groups earn a disproportionate share of pretax income and pay a disproportionate share of federal taxes. In 2007, the highest quintile earned 55.9 percent of pretax income and paid 68.9 percent of federal taxes; the top 1 percent of households earned 19.4 percent of income and paid 28.1 percent of taxes. The share of taxes paid by high-income groups exceeded their share of income because average tax rates rise with income. In all other quintiles, the share of federal taxes was less than the income share. The bottom quintile earned 4.0 percent of income and paid 0.8 percent of taxes, and the middle quintile earned 13.1 percent of income and paid 9.2 percent of taxes.

source: CBO Graphics
I'm not saying this proves my point -- "undertaxed" is opinion. But the data don't make the Dems' case either.

(via Tax Prof Blog)

1 comment:

A_Nonny_Mouse said...

"But the data don't make the Dems' case either."

NOTHING has made the Dems' case for the last 17 months.

That hasn't stopped them from passing ABYSMALLY bad bills.

Additionally, the fact that they don't bother to READ the bills they're passing indicates to me that the whole lot of them should be arrested for treason and hauled in front of a firing squad. (I'd bet it would only take disposing of a few, and the rest of them would suddenly rediscover their sense of duty toward Constitution and Country.)

Just sign me,
Fed. Up.