Thursday, January 20, 2022

Income Tax Myths Are Wrong

Two common mantras of the Democratic party are 1) The "rich" don't pay their fair share of income taxes, and 2) the last tax cut signed into law by Trump was a tax cut for the rich. 

Both are wrong, facts backed up by actual data from the IRS. While these Democratic party talking points keep getting repeated every year, the Democrats insist on perpetuating their lies in a type of class warfare. 

1. The top 1 percent of wage earners pay 20 percent of income tax. The top 5 percent pay 35.9 percent and the top 10 percent pay 47.3%. 

In 2019, the bottom 50 percent of taxpayers (taxpayers with AGI below $44,269) earned 11.5 percent of total AGI and paid 3.1 percent of all federal individual income taxes.

The top 1 percent (taxpayers with AGI of $546,434 and above) earned 20.1 percent of total AGI in 2019 and paid 38.8 percent of all federal income taxes. 

The share of income taxes paid by the top 1 percent increased from 33.2 percent in 2001 to 38.8 percent in 2019, down about 1.3 percentage points from a high of 40.1 percent in 2018. Over the same period, the share paid by the bottom 50 percent of taxpayers fell from 4.9 percent to just over 3 percent in 2019, up about a tenth of a percentage point from 2018.

I'm not sure what else could constitute "fair share."

2. The Tax Cuts and Jobs Act (TCJA) reduced the average tax rate across all income groups. 

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