Those who earn the most money – and invest the most in the economy – are already paying almost all federal personal income taxes, a recent report reveals.
Congress’ Joint Economic Committee disclosed that the richer half of the American population pays nearly 97 percent of income taxes. Most of that, 54 percent, is paid by those in the top 5 percent, Investor’s Business Daily (IBD) disclosed.
And the richest of the rich – just the top 1 percent – pay a hefty 34 percent of all personal income taxes collected by the federal government.
Meanwhile, about 14 million lower-income Americans have been removed from the income tax rolls since 2000 due to the earned income tax credit and the per-child tax credit, IBD reports.
Despite Bush’s tax cuts, the overall tax burden has been rising. Americans’ average overall tax burden has risen since 2004 and now stands at 31.6 percent of income, according to the Tax Foundation, due in large part to the alternative minimum tax and increases in property taxes.
"With an already rising tax burden, borne disproportionately by those who are successful, and who invest,” the IBD concludes, "the Democrats’ plans for big tax increases could be more damaging to the U.S. economy than ever before.”