How to Compare U.S. Income Taxes of the Wealthy to Other Levels

Step-by-Step Guide

1. 1

   Step 1: Check individually -- if you wish -- whether each of these is (1) True or (2) False: The top 10% (ie: rich/wealthy) pay about 70% of income tax'?

   The top 10% pay about 50% of income tax'? The lower 50% pay about 3% of income tax'? The top one percent (1%) make nearly 20% of income but pay close to 40% of all tax'?
2. 2

   Step 2: Search for yourself on the Internet on the topic for totals and percentages of IRS data by several reputable sources.

   Here is one example of a report based on IRS data of the highest 1/10 of income earners which shows, according to the Associated Press, in USA Today, that the top 10% of households:paid more than 50% of "all" Federal taxes, and paid more than 70% of Federal "income" taxes.
   
   USA Today, Money article entitled, "Fact check:
   The wealthy already pay more taxes": "The 10% of households with the highest incomes pay more than half of all federal taxes.
   
   They pay more than 70% of federal income taxes, according to the Congressional Budget Office."(per Congressional Budget Office)., They already pay both the largest total amount of money for taxes, and the largest percentage of taxes paid in the United States based on the averages for income taxes. ,,,,,,, It includes the "burden of taxation and who bears that burden" and "revenue collected through taxes."
3. 3

   Step 3: Verify whether there are or are "not" higher income tax rates on the wealthy on average: And

4. 4

   Step 4: these rates are called progressive tax rates - of a tax or tax system

5. 5

   Step 5: tax rates "go onward

6. 6

   Step 6: upward" with taxes "from the lower rate in a series to the highest rate" on income; "proceeding step by step" -- and "graduated so that the rate increases relative to the amount taxed" -- example: tax rate percentages increase based on taxable income (gifts are not taxed).

7. 7

   Step 7: Examine data for the most recent year 2008

8. 8

   Step 8: for which full data is available

9. 9

   Step 9: according to "IRS Data" reported by the "Tax Foundation".

10. 10

    Step 10: Read that

11. 11

    Step 11: in 2008

12. 12

    Step 12: 1% of all taxpayers had these earnings of: over $380

13. 13

    Step 13: 354 per year paid 38.02% of Federal income taxes.

14. 14

    Step 14: Extract the facts for 2008 relating that: the lower 50% of income earners shouldered just 2.7% of the Federal income tax burden.

15. 15

    Step 15: Read IRS data that show that: the top 50% pay 97% of taxes.

16. 16

    Step 16: See IRS data for 2009 on their income in Federal income taxes taxpayers who made:$1 million or more paid on average 24.4% $100

17. 17

    Step 17: 000 to $125

18. 18

    Step 18: 000 paid on average of 9.9% $50

19. 19

    Step 19: 000 to $60

20. 20

    Step 20: 000 paid an average of 6.3%.

21. 21

    Step 21: Observe that in 2008 those who earned about 20% of income of the nation's adjusted gross income were: the top 1% of income earners but paid nearly 40% of total taxes

22. 22

    Step 22: while you can see the last column on the far right is the "bottom 50%" who had only a tax burden of 2.7% of the total (all the first 5 columns together form the upper 50% of income earners and paid 97.3% of taxes).

23. 23

    Step 23: Check the website of the Congressional Budget Office

24. 24

    Step 24: for example: see their report "Issues in Tax Policy"

25. 25

    Step 25: Douglas W. Elmendorf

26. 26

    Step 26: Director

27. 27

    Step 27: May 19

Detailed Guide

About the Author