The one question Obama and the left have never answered during the tax debate is how much do the rich have to pay in order to constitute a “fair share” in their estimation. America has always had the most progressive tax code in the developed world due to the number of people at the bottom of the income ladder who can collect refundable tax credits. Well, due to the McConnell-Obama tax increases, the tax code got even more progressive. Yet, it is not enough for Obama, and you better not call him a socialist.
According to a new analysis of data compiled by the Tax Policy Center, the top 1% of income earners will pay 30.2% of all federal taxes; the top 20% will pay 71.8%. This includes all federal taxes: income payroll, investment, and estate taxes. The bottom 20% actually pay -0.4% because they receive more money than they put into the system.
If you just factor in income taxes, the system is even more progressive. But these numbers include payroll taxes, which means that the bottom 20% receives enough in refundable tax credits to zero out their payroll tax liability in addition to their income tax liability. I would imagine that if you add in state tax liability, the sum total liability for the top income earners is even more imbalanced.
Viewed in total, the tax liability for the rich is the highest its been since 1979.
Now, it will take some time for the tax hikes to slow economic growth, engendering a counterintuitive decrease in revenue to the treasury. So in the meantime the treasury is expected to receive a record level of revenue for the next few years.
Record revenue; record spending= record government intrusion into our lives.
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