Wednesday, July 23, 2008

Top 5% of Earners Pay 60% of Tax Revenues

The latest figures (2006 tax year) on personal income taxes came out this week. You may have heard about it on the radio or TV or read about it on a blog. Let's just say the math doesn't support the action line of the media as they pimp for Presumptive President Obama.

Under President Bush the share of tax revenue paid by the wealthiest earners has gone up, not down. In fact, the share of tax revenue paid by the top 1%, top 5%, and top 10% of earners is the highest it's been in decades.

The Top 50% of earners now pays 97.01% of tax revenues generated by the personal income tax. The bottom 50% picks up the tab for 2.99%. Which of course means there is a built-in constituency of 50% for a presidential candidate who promises to raise taxes on the rich. Funny how that works out, huh?