Wednesday, September 21, 2011

Well ain't that a kick in the pants...

With all the hoopla currently surrounding Warren Buffet's tax rate (which is lower than his secretary's, supposedly) and Obama's continued calls for millionaires to pay their fair share, it might be a good idea for some actual fact-checking. Luckily, Stephen Ohlemacher at the AP has obliged:
This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes, payroll taxes and other taxes, according to the Tax Policy Center, a Washington think tank.  
Households making between $50,000 and $75,000 will pay an average of 15 percent of their income in federal taxes.  
Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making beween $20,000 and $30,000 will pay 5.7 percent.
But that data is from some think tank--probably conservative-leaning--so it's not trustworthy, right? But look, data from the IRS says pretty much same thing:
The latest IRS figures are a few years older — and limited to federal income taxes — but show much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes, according to the IRS. 
Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.
So, where are all of these millionaires, billionaires, and hedge fund managers that are getting away with paying lower rates than members of the middle class? Aside from Warren Buffet, I mean...

Cheers, all.

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