As tax day approaches, here are some facts you might not hear from the politicians in Washington about the current progressivity of the income tax:
- The top 1% of households (those earning more than $389,000 per year) earn 22% of America’s income, but pay 40% of America’s income tax. This is up from 26% in 1986 and 37% in 2000
- The top 5% of households (those earning more than $154,000 per year) earn 37% of America’s income, but pay 60% of America’s income tax. This is up from 43% in 1986 and 56% in 2000
- The top 10% of households (those earning more than $109,000 per year) earn 47% of America’s income, but pay over 70% of America’s income tax. This is up from 55% in 1986 and 67% in 2000
- Meanwhile, the lower half of income earners (those earning less than $32,000) pay only 3% of income taxes. This is down from over 6% in 1986 and 4% in 2000
- The story these numbers tell is of an income tax system which is steeply progressive, and has gotten more so over time—not less
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