Top 10% makes $150k.
Top 5% makes $190k.
Top 1% makes $500k or above. After many years of hard work, serious debt, and risks.
Paying one’s fair share should mean an equal pay. If you’re in the top 10% of earners, then you should pay 10% of the gross collection of taxes. 20% earners should pay 20%, and so on. But this not the case.
Top 10% earners, while earning only 43% of all income, pay 71% of taxes. If anything, the top 10% pay more than their fair share.
So do the top 1% earners. They earn 17% of all income, but pay 37% of all federal income taxes.
47% of all earners make $45k/year and often pay little or no taxes.
What about Payroll Taxes, the money we earn to fund social security and Medicare?
h/t Mark Perry’s Wednesday Afternoon Links. Mark J. Perry is concurrently a scholar at AEI and a professor of economics and finance at the University of Michigan’s Flint campus. He is best known as the creator and editor of the popular economics blog Carpe Diem. At AEI, Perry writes about economic and financial issues for American.com and the AEIdeas blog.