Why A Few Taxpayers Pay So Much Of The Taxes

Stolen from the Bear Left site

Fact of the Week

In 2000, the 400 taxpayers with the highest adjusted gross incomes reported over 1 percent of all income reported to the IRS that year. Their average tax rate was 22.3 percent. If the Bush tax cuts of 2002 and 2003 had been in effect, their tax rate would have declined to 17.5 percent, with an average savings of $8.3 million. These taxpayers are the biggest beneficiaries of these tax cuts. To make the top 400 in 2000, a taxpayer needed taxable income of $86.8 million.

Sources:

New York Times, 26 June 2003;

IRS report, June 2003.

Update – OK, OK… The reason a few taxpayers pay a lot of the income tax is because they get a lot of the income. When the Republicans say that the top X percent pay most of the taxes IT IS BECAUSE THEY HAVE MOST OF THE INCOME. The fact is that people at the top pay a lower tax rate than people in the middle AND DON’T PAY SOCIAL SECURITY – the largest item in most people’s taxes – AT ALL on almost all of their income!!!!