We hear that question a lot. Do the rich pay their fair share? Why should millionaires and billionaires get tax cuts? Why can’t they pay more?
They do. Not just in real dollars; they are actually paying more than their share. I have prepared graphs to illustrate this. The graphs are based on publicly available data from the IRS. It takes about 5 minutes to do this in Excel. Seriously, why people have a hard time understanding these facts is beyond me, but here’s some help!
Look at a graph comparing the earnings of, and taxes paid by, each income group. The groups are graduated up from 50% all the way to the top 1%. (Obviously the Top 50% is inclusive of the other “Top X%” groups, etc… as you move right on the graph) The earnings are Adjusted Gross Income figures for 2008 and the taxes paid are federal personal income taxes for the same year. Apples to apples.
As you can see, the bottom 50% of wage earners pay 2.7% of taxes and make almost 13% of the money. Meanwhile, the top 1% of wage earners pay 38% of taxes and make only 20% of the money. A more shocking comparison, is that the bottom 50% pay 2.7% of taxes while the top 50% of income earners pay OVER 97% of taxes.

Comparison of Wage Earners (Share of Total Taxes and Wages)
We need a better way to visualize this relationship since people seem to have a hard time understanding it. I give you: the Share of Taxes Paid relative to the Share of Earnings made. This graph relates the two figures from the previous graph. As you can see, the bottom 50% of wage earners pay significantly less than 100% of their “share.” While every income group above pays progressively more massive shares exceeding 100% of their “share” until you reach the top 1% of wage earners. Those maligned producers of income, investments, jobs and economic prosperity are paying double their “share.”

Wage Earner Groups Share of Taxes Relative to Earnings Share
While I do not mean to suggest that the bottom 50% need be piled on with taxes, this does serve as a direct, effective and unassailable rebuttal to any and all leftists who continue on the mantra that the “rich don’t pay their fair share.” Clearly they pay in excess of their fair share. But how does this fit in context? Data without context is useless. Therefore, I give you: The bottom 50% of wage earners share of income taxes paid… over time. From the end of the Clinton administration all the way through the Bush administration… supposedly replete with tax cuts for the “wealthy.”

Bottom 50% Wage Earners Share of Taxes Relative to Earning Share Over Time
As you can see, the bottom 50% of wage earners saw their share of federal income taxes nosedive from 4% down to 2.7%. And if you think that is a small difference, you have to consider that in 1999, their share of federal taxes paid was 48% higher than their share in 2008. The fact that their share is so small makes further drops very difficult.
Any across the board tax cut, as all of the Bush tax cuts were, would mathematically necessitate real dollar numbers being much higher at the top of the income scale. That’s just how percentages work. If people make more dollars, they keep/pay/cut/increase all in higher numbers of real dollars.You have to accept this premise.
If you are stuck on the notion that someone makes more money than you, then you are beyond hope. Spend less time coveting and jealously plotting to destroy other people and you may succeed in your own endeavors.
There is no feasible way to cut taxes, without them being easily misrepresented as “tax cuts for the rich.” But this is an argumentative sleight of hand. (A lie) Now you know the truth. It’s been said before, in other places and by other people. But here I am, saying it again so you have one more place to find the truth. Math doesn’t lie. The rich already pay their fair share, and some of your share, and some of my share.
Obama has done enough to destroy our economy through wasteful and frivolous spending, fiscal mismanagement, the threat of taxes and the disparaging words of class warfare that drag business and investment to a standstill. Don’t let him and his minions win the next fight – the fight over whether or not to completely level what is left of our economy into so much rubble… so that all we have left is hope for 2012 and the change in our pockets.
And to any hippies that disagree: GET A JOB!
Graph Data Source: United States of America, Internal Revenue Service: Individual Income Tax Returns with Positive Adjusted Gross Income (AGI) Returns Classified by Tax Percentile – Early Release .