I’m surprised that today’s Wall Street Journal story on income inequality failed to mention that while the wealthiest 1 percent of Americans earned 21.2 percent of all incomes in 2005, they now pay nearly 40 percent of all taxes.
In 1980, before the Reagan supply-side tax cut revolution was launched, the top 1 percent earned 8.5 percent of all income and paid 19.1 percent of all taxes. So while the rich are getting richer, the rich are also paying the lion’s share of the taxes.
As others have pointed out, the top 5 percent of income earners pay 60 percent of the taxes. The top 25 percent pay 86 percent of taxes. And the top 50 percent pay 97 percent of all taxes.
It kind of puts a different spin on the WSJ story, doesn’t it?