Current Events — HabitableZone

Current Events » in reply to Who's paying the Federal income taxes

The right way to look at this....

The right way to look at tax burdens is not share of each income group in total tax receipts, but share of each groups' income going to taxes.

Simple illustration. We have a population of 10, 9 of whom are poor and 1 rich.

Year 1:

9 poor: Income = 1000, Taxes each = 100

1 rich: Income = 10000, Taxes = 1000

Tax revenue share: 47% from poor, 53% from rich

Tax burden: 10% on each

Year 2:

9 poor: Income = 500, Taxes each = 90

1 rich: Income = 50000, Taxes = 1090

Revenue share: 42% from poor, 58% from rich

Tax burden: 18% on poor, 2% on rich

By your logic, TB, Year 1 is more fair to the rich guy, and the poor ought to be happy in Year 2.

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