Friday, April 22, 2011

Since 1979, The Top 1% Of Income Earners Have Increased Their Share Of Taxes Paid Despite Lower Rates

See Tax Rates and Share of Tax Revenues from Top 1% at Carpe Diem by Mark Perry. It shows a great chart. Here is that post:

"The chart above shows the relationship over time (from 1979 to 2007) between: a) the top marginal income tax rate, and b) the share of total income taxes paid by the top 1% (data). In 1979 the top marginal income tax rate was 70% and 18.3% of the total taxes paid were collected from the top 1% of taxpayers. By 2007 the top tax rate was 35% (half of the 1979 rate), and the tax share of the top 1% had more than doubled to 39.5% (from 18.3% in 1979).

The historical record shows an inverse relationship between the highest marginal income tax rate and the share of taxes collected from "the wealthy." It's a relationship to keep in mind during the current tax policy debate, where Obama wants to increase tax revenues by raising tax rates for "the rich," and Rep. Ryan alternatively suggests a cut in the top marginal rate to stimulate economic growth, which would likely increase tax revenues from the wealthy, and increase overall tax revenue. "
Here is the info from the Tax Policy Center Historical Shares of Federal Tax Liabilities for All Households

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