1. Taxes - Who Really Pays What?
Part 1
a non-partisan look at the real facts behind taxes in the U.S.
?

2. How much do we collect?
Federal Government Current Receipts
(shaded areas equal recessions)
Source: U.S. Dept of Commerce, Bureau of Economic Analysis
3.0
Thousands
We collect about
2.5
$2.5 Trillion in tax
revenue every year.
That's 2,500 billion
2.0
dollars.
1.5
1.0
0.5
0.0
May-49
Apr-52
Nov-31
Aug-40
Sep-37
Jul-43
Feb-58
Dec-28
Jun-46
Mar-55
Oct-34
Jan-61
Jan-64
Jan-67
Jan-70
Jan-73
Jan-76
Jan-79
Jan-82
Jan-85
Jan-88
Jan-91
Jan-94
Jan-97
Jan-00
Jan-03
Jan-06
Jan-09
Jan-12
Jan-15

3. Where does that money come from?
Federal Government Revenue by Source
Of the $2.5
Business and Other
Ad-Valorem Taxes trillion, only 57% or
Revenue
4% 4% $1.44 trillion comes
from personal
income taxes. Most
of the rest comes
from Social
Insurance Taxes like
Social Insurance Taxes
Income Taxes SSI.
35%
57%
Source: U.S. Dept of Commerce, Bureau of Economic Analysis

4. What percent does the Top 50% pay?
Share of Total Income Taxes Paid - Top 50%
100.00%
Source: IRS, Tax Foundation Here are the facts:
90.00%
The Top 50% of tax
80.00% payers, pay more
than 95% of all the
70.00% income taxes paid in
Top 50% this country.
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Bottom 50%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

5. The Top 25%?
Share of Total Income Taxes Paid - Top 25%
100.00%
Source: IRS, Tax Foundation
90.00%
80.00%
70.00% The Top 25% pay
almost 90% of all the
60.00% income tax paid.
Top 25%
50.00%
40.00%
30.00%
20.00%
10.00%
Bottom 75%
0.00%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

6. The Top 10%?
Share of Total Income Taxes Paid - Top 10%
100.00%
Source: IRS, Tax Foundation
90.00%
80.00%
The Top 10% are
responsible for just
70.00%
over 70% of all taxes
Top 10%
paid.
60.00%
50.00%
40.00%
30.00%
20.00%
Bottom 90%
10.00%
0.00%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

7. What about the Top 5%?
Share of Total Income Taxes Paid - Top 5%
100.00%
Source: IRS, Tax Foundation
90.00%
80.00%
70.00% The Top 5% pay
Top 5% slightly under 60%.
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
Bottom 95%
0.00%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

8. Finally, what does the 1% pay?
Share of Total Income Taxes Paid - Top 1%
100.00%
Source: IRS, Tax Foundation
The Top 1% pay just
90.00% under 40% of all the
Top 1% income taxes paid in
80.00% this country.
70.00% Over time, each of
these amounts paid
60.00% has increased.
50.00% Does it make sense?
40.00%
30.00%
20.00%
Bottom 99%
10.00%
0.00%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

9. Do the rich really pay more than they should?
The rich hack and cough about shouldering an unfair amount of the tax
burden.
The 99% claim the rich don’t pay nearly enough.
Fair is an emotionally relative term that has little to do with facts. Here at
SFE, we deal with facts.
So, in Part 2 we will take a look at
1. What level of income does it take to be “rich”?
2. What share of the total dollar income does each percentile earn?
3. How do the additional incomes compare to the additional tax
burdens?