Who Pays Income Taxes?

With this presidential campaign coming to a close, we have heard claim on claim on tax cuts and who got what tax cuts. I was curious on the facts of taxes and who pays what.

I went out to the Congressional Budget Office's website and accessed information on taxes for the last 30 years. Here is what I found.

In 1981 the wealthest 20% of all tax payers paid 63.9% of all the income taxes and the Top 1% paid a whopping 16.3%. That is understandable, we did have a 75% tax rate for the wealthiest and a people loving President and Congress in office.

But then came the greedy Reaganites and the Reagan Tax Cuts, and the percentage when down to 66.9% and 21.2%, Wait that was not down, it was higher percent. That's strange the averages started to rise and rise. In 2001 the rate was a 82.5 % and 34.4%. The richest 1% paid over a third of all income taxes?

Then comes the illigimate George W. Bush and his "for the wealthy" tax cut, and we all know that poor started paying much more of the taxes. And yes, they did! In 2003, after the first tax cut was in affect rates went down to 84.8% and 34.8%. AH, that was up again.

For sure the 2003 tax cut had the rate drop for the wealthy. We all remember Tom Dachle come out and show that the common person got back only enough for a muffler and the rich could afford a Lexus. ....HUH? the Rate when up again. In 2005, the last year available the rates went up to 86.3% and 38.8%.

Now we are on the verge of having a true champion of the people and he has promised that 95% will not have a tax increase. He has also said that he would get rid of this "Bush TaxCut". Is this not raising taxes on the lower classes of wage earners? Go Figure.


http://www.cbo.gov/doc.cfm?index=3089&type=0
http://www.cbo.gov/ftpdocs/61xx/doc6133/03-01-EffectiveTaxRates.pdf
http://www.cbo.gov/ftpdocs/88xx/doc8885/12-11-HistoricalTaxRates.pdf