Every year, especially at national election time
and at tax time (April 15) there are arguments
as to who pays their fair share of U.S. income
taxes, who should pay more, and who should
pay less. Politicians run on the topic, some
in the first camp, others in the second.
And there are others in the battle as well:
advocates for this program or that cause,
this ideology or that, this presidential candidate
or that, all of them claiming that they require
more and more money from Washington
and/or the state legislatures and/or the
municipal governments, not to mention
those of the counties.
A popular cry from those with left-wing tendencies
is "Tax the rich! They don't pay their fair share!"
They don't think that the wealthier among us pay
enough in income taxes, that they get off easy with
their taxes somehow. Well, your diligent Peasant did
some research on the matter and here are my findings:
Data from the IRS (no less!):
*In 2021, the most recent year for these records, taxpayers
filed 153.6 million tax returns, reporting over $14.7 trillion
in individual income taxes. The average income tax rate for
2021 was 14.9%. The top 1% of taxpayers paid a 25.9 %
rate, nearly eight times higher than the 3.3% average rate
paid by the bottom half of all taxpayers.
*The top 1 per cents' income share rose from 22.2 % in 2020
to 26.3% with its share of federal income taxes paid rose from
42.3% to 45.8%.
*The top 50% of all taxpayers paid 97.7% (!) of all federal
income taxes, while the bottom 50% paid all of just 2.3%.
*The 2021 figures include COVID-19 pandemic-related items
from the ARPA (American Rescue Plan Act), i.e. the
non-refundable part of the third round of the Recovery Rebates,
the expanded child tax credit, and the Earned Income Tax Credit.
*Also noted is the fact that Capital gains realizations topped
$2 trillion to achieve a 40-year high, driving income growth
and taxes paid for high income groups, i.e. the top 1%.
Share of total 2021 income tax paid, from the top earners (1%)
to the bottom earners (50%).
Top 1%: 45.8%. That's nearly half of all income taxes paid, and by
just one per cent of the income earners in the United States.
Top 5%: 65.6%.
Top 10%: 75.8%.
Top 25%: 89.2%.
Top 50%: 97.7%.
Bottom 50%: 2.3%.
All Taxpayers: 100%.
But there's more: Some people want to see the higher earners not only
pay still more in income taxes; what do they, pray tell, consider their
"fair share" of income taxes to pay? But U.S. Sen. Elizabeth Warren
(D-MA) wants to tax the unrealized profits of their investment
portfolios (!!). This means that if you have, say, stocks and you
have not sold any of your shares for a gain, you must STILL pay a
percentage of your portfolio's worth in taxes! And there a few more
politicians like Sen. Warren in Washington with this same socialistic
idea in mind! Then these same people call these high earners "greedy"!
Meanwhile, Uncle Sam keeps spending more and more on programs
that either should not require, and certainly not receive so much money
in order to operate or on programs which should not even exist, as they
are wasteful boondoggles to begin with. So who, then, are the greedy
ones?
Keep these facts and figures in mind on this, here at the annual tax
deadline, as well as when you get into an argument with an advocate
for ever more confiscatory taxes including to the point of taking away
investment gains unrealized EVEN THOUGH THEY HAVEN'T BEEN
SOLD YET (emphasis your exasperated Peasant's)!
Have a Happy Tax Day!
MEM
