We are told to bemoan the 1% and wealthy Americans for making too much money and for not contributing their fair share, but did you know they contribute the most in taxes? Color me shocked.
Income taxes are the federal government single largest source of revenue, and the top 3% of income earners contribute the most. Bloomberg Quint looked at 2016 tax returns to demonstrate this. Among the statistics that stick out, the top one percent paid 37.3% in taxes, while the top 50 percent of taxpayers paid 97% of total income taxes. They found the following:
- The top 1 percent paid a greater share of individual income taxes (37.3 percent) than the bottom 90 percent combined (30.5 percent)*.*
- The top 50 percent of all taxpayers paid 97 percent of total individual income taxes*.*
- In other words, the bottom 50 percent paid 3 percent*. Which small percentile of tax payers also paid 3 percent or more? You might have guessed it. It is the top 0.001%, or about 1,400 taxpayers. That group alone paid 3.25 percent of all income taxes. In 2001, the bottom 50 percent paid nearly 5 percent whereas the top 0.001 percent of filers paid 2.3 percent of income taxes.*
For fiscal year 2018, which ended September 30th, the Congressional Budget Office (CBO) reported that the individual income tax is expected to bring in approximately $1.7 trillion (or half of all federal revenues) in revenue. The current tax structure is progressive in nature, meaning those who generate more income pay a higher share in income taxes and vice versa.
Despite left-leaning outlets suggesting the rich don’t create jobs or rich people have little to do with job creation — they tell us government creates jobs!— the evidence points to the contrary: The top income earners are the biggest job creators in this country. In fact, as part of the greater system of “trickle-down economics” overall, job creation at the hands of wealthy Americans works very well. Take that!
Remember: The government doesn’t create jobs nor should it be tasked with such a responsibility. Their only role is to create a pro-business environment for businesses to flourish and job creation to be seen through private enterprise.
As Ben Shapiro quips, facts really don’t care about your feelings — especially with respect to wealth generation in the U.S.