Economics, U.S. Economy

This chart shows just how progressive the U.S. tax code already is

The must-follow Political Math blog:

I love this chart because I think it summarizes so many important things very easily. We can immediately get the scope of how much the top 1% makes, (it’s a lot) but also easily see that they pay more as a % of the tax burden than they make as a % of the national income. We can see that the US tax system is actually fairly progressive, with the top 20-10% paying the closest to a “fair share” (if by fair you mean every dollar made is taxed at an equal proportion to all income as a whole).

Warren Buffett is an anecdote, but one that has been repeated so often that many people think that the rich, as a whole, don’t pay very much in taxes. This chart shows that this is entirely untrue.

To liberals, this chart makes it seem like there’s a lot more work to do. To conservatives, it’s more proof that major rollback is needed. Kind of like this graphic from Scott Winship:

2 thoughts on “This chart shows just how progressive the U.S. tax code already is

  1. I completely agree that the tax code is quite progressive and so does Howard Gleckman of the non-partisan Tax Policy Center.

    “On average, high income people do pay significantly higher tax rates than those lower down the economic food chain. New estimates by my Tax Policy Center colleagues show that the tax code is, overall, quite progressive.” http://bit.ly/yyLJDp

    The bottom line is that the best thing for all American taxpayers is for Congress to do a complete overhaul of the tax code.

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