Monday, April 25, 2011

Some Particularly Interesting Tax Graphs

A breakdown of income tax revenue by income percentile.

The bottom 50% of income earners pay 2.7% of income taxes.

And here's the same chart, but with a breakdown added of what percentage of national income those groups are making.

The bottom 50% of income earners pay 2.7% of income taxes, but earn 12.8% of the income. The top 1% of income earners shoulder 38% of income taxes, but earn 20% of the income.

So let's look at this a different way, shall we? Just how much income do all of these groups have that could potentially be taxed?

The Wall Street Journal answers: not enough to close up the deficit or pay for all of Obama's new spending.

Even if they taxed away every dollar in Obama's "richest one percent", it still wouldn't be enough. You could tax every person making over $200,000 at 100% taxation and it wouldn't be enough to make up the shortfall we're seeing in this year's deficit, let alone cover the ballooning cost of entitlement spending. There's just no money.

Which brings us to the next graph, a comparison of three budgetary futures: Obama's first budget, Obama's redo second budget, and Paul Ryan's budget.

And, just for good measure, let's look at deficits under recent presidents: