Walter Williams writes about who actually pays most of the taxes that support government spending. Some politicians, particularly on the left, argue that the rich must pay their fair share and label the tax cuts in the new tax law as “tax cuts for the rich.”
According to the IRS the top 1 percent of income earners, those having an adjusted annual gross income of $480,930 or higher, pay about 39 percent of federal income taxes. That means about 892,000 Americans are stuck with paying 39 percent of all federal taxes.
The top 10 percent of income earners, those having an adjusted gross income over $138,031, pay about 70.6 percent of federal income taxes.
When it comes to income taxes, over 70% are paid by the top 10% producers in the economy. Therefore, says Williams, any tax breaks will tend to have greater impact, in dollar amounts, on the top 10% of earners. Williams also argues that high taxes on corporations also cost you money, indirectly.
Regardless of how much money you think should be shifted from producers to the government, you cannot argue that the 10% who pay over 70% of the tax burden aren’t paying their fair share or that it benefits you for “the rich” and corporations to be highly taxed.