Saturday, February 25, 2006

Tax data, top 1 percent and all that

Is this right?
Office of Public Affairs

March 2, 2005
Who Pays the Most Individual Income Taxes?

...The President’s tax cuts have shifted a larger share of the individual income taxes paid to higher income taxpayers. [Emphasis mine.] In 2005, when most of the tax cut provisions are fully in effect (e.g., lower tax rates, the $1,000 child credit, marriage penalty relief), the projected tax share for lower-income taxpayers will fall, while the tax share for higher-income taxpayers will rise.
  • The share of taxes paid by the bottom 50 percent of taxpayers will fall from 4.1 percent to 3.6 percent.
  • The share of taxes paid by the top 1 percent of taxpayers will rise from 32.3 percent to 33.7 percent.
  • The average tax rate for the bottom 50 percent of taxpayers falls by 27 percent as compared to a 13 percent decline for taxpayers in the top 1 percent.
Granted this looks at income taxes only. But it's still remarkable in light of the conventional wisdom on the topic.