Engineer
Elite Member
- Oct 9, 1999
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Originally posted by: ElFenix
Originally posted by: Engineer
So the top 1%'s percentage of of total income rose 28.4% ((20.3 - 15.8 ) / 15.8 * 100) from 2002 to 2006 while their percentage total tax rose 18.1% ((39.81 - 33.71) / 33.71 * 100) from your own links. Based on income, their percent of taxation (as a whole) should have rose 28.4% (based on income gains) but it grew at 2/3's pace. Sounds like a much lower "effective" rate than before to me.
that alone doesn't answer the question of whether the tax system is more or less progressive than it was before. you'd also have to answer the question for other parts of the income distribution.
That's why I stated above that you would need to see the effective rates to see whether it was more or less progressive. The OP claimed that the taxes were more progressive because the rich and upper divisions paid more % of national tax burden. My example above shows that income "can" determine the % of total taxes paid just as much or more than rates, and even with equal rates, the rich can pay more. Doesn't mean that paying more of the national % of taxes = more progressive (as claimed by the OP). That claim is simply untrue without looking at the effective tax rates of every percentile
Originally posted by: Orsorum
I would like to see a study that uses not just IRS data but FICA/FUTA collections, sales and use taxes, gasoline taxes, etc., to truly capture the percentage of gross income each taxpayer pays in taxes. Using just the IRS data (for FIT paid) is misleading.
that too
Well, that would be the true tax burden of every single person in society, not just income tax burden. SS payroll tax would effect anyone up to $100,000 more than it would effect people earning millions as their payout would end at the $100,000 (or whatever the payout limit is on SS for that year). That's another thead though as this one is about income taxes from the OP