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> Remember though that tax revenue is actually dominated by the little guy. That's not correct. 4.5% of returns account for almost 60% of taxes. 17% of returns
by js2 6y ago
> Remember though that tax revenue is actually dominated by the little guy.
That's not correct. 4.5% of returns account for almost 60% of taxes. 17% of returns account for almost 80% of taxes. And that was before the Trump tax cuts.
https://www.pewresearch.org/fact-tank/2017/10/06/a-closer-look-at-who-does-and-doesnt-pay-u-s-income-tax/ https://www.pewresearch.org/fact-tank/2017/10/06/a-closer-lo...
- refurb 6y agoThis ignores the EITC which is available to a huge swath of low income earners. The only reason the IRS is involved is because the payment is a tax credit, rather than just a payment from some govt body. 22M Americans receive EITCs and the average payout was $3200, for a total of $70B per year.[1] [1]https://www.cbpp.org/research/federal-tax/policy-basics-the-earned-income-tax-credit https://www.cbpp.org/research/federal-tax/policy-basics-the-...
- secabeen 6y agoThis citation is solely focused on income taxes, which make up only have of the revenue. Payroll taxes are 36% of the revenue, and are only incurred on the first ~$120k of income. I think this number would be more enlightening if it included all taxes (state property and income tax too), not just federal income taxes.
- js2 6y agoTrue but not really relevant to IRS income tax enforcement.