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NOTE: purple area shows payroll taxes and green area shows corporate taxes. See how that’s worked out really, really well for the 1% and not so much for the rest of us?
CHART OF THE DAY: The ‘47 Percent’ Pay Their Fair Share
Conservatives are continuing their counter-protest against the so-called “47 percent.” Specifically, that’s the share of recession-era households that pay no federal income taxes. Most of them pay payroll taxes and other federal taxes (not to mention state taxes), but Republicans have chosen to depict them as the free-riding half of the country.
The fact of the matter, though, is that those other taxes constitute a huge chunk of federal revenues. Check out the charts below. Over the 58 years preceding the Lesser Depression, the share of federal revenues that came from individual income taxes has remained fairly stable, fluctuating between 40 and 50 percent, and peaking just before George W. Bush slashed rates in 2001.
The rest has come from corporate income taxes, payroll taxes, and various other taxes. To a surprising extent, the story of the last six decades is one of a shrinking burden on big business, and a growing burden on workers — the bulk of the “47 percent”. Since 1950, regressive payroll taxes have grown to comprise over one-third of federal revenues — they used to comprise about one-tenth. For corporate income taxes, it’s just the opposite — what used to provide the Treasury over a quarter of its revenue now provides just over 10 percent.
Another lesson on how tax laws redistribute the wealth from the bottom to the top — AND how the GOP / rightwing / Fox “News” propaganda machine lies to its self-hating base for their support. If we only had a real media reporting these facts to the their audience.
And if we’re talking about individual income tax, then let’s also discuss how income tax on labor is much higher than income tax on capital gains. Another way the rich get richer…