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That is incorrect. The top 1% earn about 20% of the income in the US. They pay about 40% of the income taxes (I went and looked this up after your comment. "Ne
by harryh 9y ago
That is incorrect. The top 1% earn about 20% of the income in the US.
They pay about 40% of the income taxes (I went and looked this up after your comment. "Nearly half" was perhaps slightly overstating the case).
Given that we have a progressive tax system it makes intuitive sense that the higher percentiles (1%, 5%, 10%, whatever) will always pay a greater percentage of total income tax than they make in total income.
- JoeAltmaier 9y agoAh! I was wrong; I was thinking 'net worth' not income. And the net worth of the top 1% is around 35% of the total national wealth. (Which is curiously close to the income tax number of 40%)
- harryh 9y agoAh, yes. Stock vs flow! I noticed that curiosity as well. Not sure it means anything in particular but it was interesting.