Taxes and Your Fair Share


So, there's a lot of people saying that the rich aren't paying enough taxes. That they aren't paying their fair share. The Left successfully villianized Mitt Romney for being rich. The Occupy movement wants the Government to take the rich's money and give it to them. A friend of mine recently posted a status that sounded like he was mad a rich person was looking to move to a place where he wouldn't be taxed so much. On and on it goes...

Let's look at some facts. The top 1% in 2007 payed nearly 30% of the federal tax revenue. (See: Those making an average income payed less than 1% of federal tax revenue. I expect that when data is published for more recent years, the numbers will be similar.

Last time I checked, the top federal tax rate for 2012 was around 35%. The bottom was a lot lower.

Now, to me, when I think of paying my fair share, I think of paying the same amount, or same percentage, as everyone else. After all, in the USA, we're all supposed to be equal, right? Now, another metric could be looking at how much I make of the national income. Then I'd pay enough taxes that my tax rate matches how much I make of the national income. According to that data I referenced, the 1% would need to pay about 20% of federal tax revenue.

In either case, the rich paid a higher rate, and more overall, than everyone else in 2007. And from the 2012 tax rates, they still are paying more than everyone else.

My conclusion? By any sense of fairness that I can understand, the rich are paying MORE than their fair share. If they paid their fair share, they'd pay less than they are now. Think about it.

Submitted by david.reagan on