Who Pays TaxesSubmitted by Karstens Investments on October 29th, 2015
According to The Kiplinger Tax Letter, the tax burden on upper-incomers is rising.The top one percent of all filers paid about 38.1 percent of all federal income taxes in 2012, the most recent year the IRS has analyzed. That’s up from 35.1 percent the previous year. They totaled 21.9 percent of total adjusted gross income, also larger than the year before. Filers needed to have AGIs of at least $434,682 to qualify for the top one percent of earners.
The highest five percent of earners paid 58.9 percent of total income tax and accounted for 36.8 percent of all adjusted gross income. They each had AGI of at least $175,817. The top 10 percent of filers, those with AGIs of $125,195 or more, bore 70.2 percent of the total tax burden while bringing in slightly less than 48 percent of the total adjusted gross income.
The bottom 50 percent of filers paid 2.8 percent of the total federal income tax take. Their share is so low because the figures do not include Social Security tax payments and because many of them get substantial tax relief through the earned income credit. •