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Yes. The tax rate on the highest wage earners has fallen since the 60s (when it was 90%). The 80s were a big time for tax cuts. However, in that period, two important things happened:

1. tax revenues increased dramatically and

2. the tax burden actually shifted toward the wealthy.

In 1980, the wealthiest 5% of Americans paid 37% of the income taxes. Today, the top 5% pays 57%. The top 1% alone pay 37%. And, today, the bottom 50% pay just 3% of all the income tax collected.

Sounds very progressive, but, as I mentioned, other taxes (FICA, sales tax, etc.) are much worse.

posted 2 years, 6 months ago
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But people are right to complain about the regressive nature of FICA. Someone making minimum wage pays 14% of their income into FICA on the first dollar they earn. But someone making $255,000 a year pays just 1.45% on the last $150,000 they earn.

This is what I mean by a regressive tax.  The poor pay a larger percentage than the rich!

posted 2 years, 6 months ago
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Here's a good picture of who pays federal income taxes:

http://www.american.com/archive/2007/november-december-magazine-contents/guess-who-really-pays-the-taxes

They're very progressive. The regressive parts of taxation have to do with Social Security and Medicare, sales taxes, cigarette taxes, lotteries, etc.

posted 2 years, 6 months ago
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But, we need recognize the element of compulsion in taxation.  If you want to pay for your neighbor's health care, then do so. Taxation is about compelling someone else to pay for your neighbor's health care.

posted 2 years, 6 months ago
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I very much agree.  The solution to many of our problems is to shrink the size of that military.

I heard we spend more than the rest of the world combined on our military (no source, sorry).

posted 2 years, 6 months ago
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I think he's including the 7% FICA (Social Security and Medicare) that you pay, then the 7% that your employer pays, plus 10% federal and 8% state tax (both estimates). So that's about 32%. 

Once again, focusing only on income tax muddles the discussion.

posted 2 years, 6 months ago
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I had almost the opposite experience. In college, I was a conservative, convinced that, once I got a job, the government would carve out some huge chunk and leave me with a pittance.

In fact, I got a great job with a great income and found that I was paying a very reasonable 9-10% in federal income tax. Where was this oppressive tax burden?  When you think about what you've been given by the system, the "bite" doesn't seem to eggregious.

posted 2 years, 6 months ago
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Rich folks are paying most of the taxes income taxes in this country. In fact, something approaching half of this country pays no income tax at all.

I think the debate is over what's their "fair share."

posted 2 years, 6 months ago
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It's always strange to me that most of the gripes about taxes focus on payroll taxes (e.g. your small business owner earlier), yet all the political debate focuses on income tax. Who's talking about reducing payroll taxes?

-Levi in Hillsboro

posted 2 years, 6 months ago
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