Who is Really Paying More of Their Income in Federal Income Taxes - the Middle Class, the Wealthy, or Someone Else?
Tax Day 2012 is Tuesday April 17th - that's the deadline for filing your personal income tax return and paying any outstanding tax bill. You can file for a six-month extension of time to complete the return but you will still need to pay your estimated tax bill by the April 17th deadline.
The non-partisan Tax Foundation has compiled some interesting data regarding what portion of adjusted gross income (AGI) was earned by folks in various income categories and how that compares with the portion of federal income taxes paid (see graph below). The chart clearly shows that lower income earners pay a much smaller portion of taxes on their income than do high income earners. Our so-called progressive system of taxation is indeed working but you'd never know that from some of the continuing political rhetoric that we hear such as the Buffett Rule.
For example, you can see in the chart below that folks with an AGI between $15,000 and $30,000 earn 12 percent of the total income yet pay only 5 percent of the total tax. Meanwhile, folks earning more than $250,000 earn about 23 percent of the total income yet pay 46 percent of the total income taxes.
Here are some additional tax factoids from the Tax Foundation:
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