Over the last 30 years, rates have fallen more for the wealthy, and especially the very wealthy, than for any other group. At the same time, their incomes have soared, and the incomes of most workers have grown only moderately faster than inflation.
That's well-documented, in spite of yakkety-yak to the contrary. Not even that magic "47% pay no taxes" is true.
About three-quarters of households pay more in payroll taxes than in income taxes. That’s the portion of American households that owe no income tax for 2009. The number is up from 38 percent in 2007, and it has become a popular talking point on cable television and talk radio. With Tax Day coming on Thursday, 47 percent has become shorthand for the notion that the wealthy face a much higher tax burden than they once did while growing numbers of Americans are effectively on the dole.
Listen carefully to what the deniers on the right are saying. If they're relying on that "47% pay no taxes, " they're lying. If they carefully specify "47% pay no federal or income taxes," they're right and their sin is one of omission.
Income taxes aren’t the only kind of federal taxes that people pay. There are also payroll taxes and capital gains taxes, among others. And, of course, people pay state and local taxes, too.
Even if the discussion is restricted to federal taxes (for which the statistics are better), a vast majority of households end up paying federal taxes. Congressional Budget Office data suggests that, at most, about 10 percent of all households pay no net federal taxes. The number 10 is obviously a lot smaller than 47.
So what's the problem with the yakkers on the right? David Leonhardt is familiar with their carping.
It’s hard not to notice that the talk show hosts themselves tend to be among the very wealthy. No doubt, like the rest of us, they don’t particularly enjoy paying taxes. They are happy with the tax cuts they have received lately. They would prefer if other people had to pick up the bill for Medicare, Social Security and the military — people like, say, firefighters, preschool teachers, computer support specialists, farmers, members of the clergy, mail carriers, secretaries and truck drivers.
More from Leonhardt about who's paying, who's not, and who'll have to pay ...look here. If you prefer misinformation, try this.
