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Individual Income Tax Returns with Positive Adjusted Gross Income (AGI) Number of Returns, Shares of AGI and Total Income Tax, AGI Floor on Percentiles in Current and Constant Dollars, and Average Tax Rates Classified by: Selected Descending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year Published as: SOI Bulletin article - Individual Income Tax Rates and Tax Shares, Table 5 Tax Years: 1986-2004
Number of Returns, Shares of AGI and Total Income Tax, AGI Floor on Percentiles in Current and Constant Dollars, and Average Tax Rates Classified by: Selected Descending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year Published as: SOI Bulletin article - Individual Income Tax Rates and Tax Shares, Table 5 Tax Years: 1986-2004
As you will see, in 2004 (the most recent tax year for which these statistics are available, the top 1% of taxpayers paid 36.89% of Federal Income taxes. That is the largest % paid from 1986-2004 by this income group. From this same factual data, you will see the same statement is true for the top 5%, top 10%, top 25% and top 50%. The top 50% paid 96.7% of the tax bill in 2004, the highest % over the 1986--2004. The US federal tax system has become more progressive over the last 18 years. It's just incredible that you are ignoring the data.
You referred to "lower taxes for the rich" above in the thread. But the truth is that Federal tax rates are lower for all income levels in the US,,,and the cuts have resulted in a more progressive tax system,,,with the wealthier tax payers paying a higher % over time.
You are suggesting that tax policy dictates income distribution, and it's only one factor in determining income distribution. Tax systems can become more progressive, and at the same time income distribution become more unequal, if the higher wage earners increase their before tax incomes more than the rest of the population.
And of course there are other taxes that are less progressive in America--but in general they have not changed, so there is no significant change in tax impact from these taxes. and there are other taxes that are less progressive in Europe, like the VAT's which are 15--20% in many European countries.
Here at ET we don't say that Europe is necessarily doing better but that there is a definite focus on the numbers that make Europe look worse, and thus that it is in "crisis" and needs "reform".
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