WSJ: Who's paying what in taxes

GrundleStiltzkin said:

Top 20% of Earners Pay 84% of Income Tax

The data comes from estimates by the nonpartisan Tax Policy Center, a Washington-based research group, as Internal Revenue Service data for 2014 won’t be available for at least two years. Unlike IRS data, it includes information about nonfilers—both people who didn’t need to file and people who should have filed but didn’t. The total also includes Americans living overseas and others, which is why it is greater than the U.S. Census estimate of 319 million.

Another important difference: The income cited on the table includes untaxed amounts for employer-provided health coverage, tax-exempt interest and retirement-plan contributions and growth, among other things. This can be significant.
On average, such benefits double the income of people in the bottom quintile and add more than 25% to the income of people in the top quintile, says Roberton Williams, an income-tax specialist at the Tax Policy Center. That means a taxpayer whose stated pay is $130,000 might be reaping another $35,000 annually in untaxed income.

“Most people focus on the income they see in their paychecks or portfolios and forget about untaxed benefits they receive,” Mr. Williams says.

The tables show just how progressive the income tax is. The three million people in the top 1% of earners pay nearly half the income tax.

Why is the share of income taxes negative for 40% of Americans? In recent decades Congress has chosen to funnel important benefits for lower-income earners through the income tax rather than other channels. Some of these benefits, such as the Earned Income Tax Credit and the American Opportunity Credit for education, make cash payments to people who don’t owe income tax.

People receiving such payments do pay other federal taxes, of course, such as those for Social Security and Medicare. If these taxes are included, the share of federal taxes paid by the lowest two quintiles turns positive.

2001400ex said:

"People receiving such payments do pay other federal taxes, of course, such as those for Social Security and Medicare. If these taxes are included, the share of federal taxes paid by the lowest two quintiles turns positive."

I'd like to see this analysis with social security and medicare. Keep in mind, the SS limit is under $120k.

GrundleStiltzkin said:

jecornel said:

Small price to pay to live in a great country.

Soon enough we will be dead and buried without having to deal with the burden of taxes or assholes on HH!!!!

Be sure to download the new death clock app... it tells tells you when you are going to die...so then you calculate when you no longer have to hand over your cash to the guvmint.

I'm worried more about the sun engulfing the earth.