Dear Occupy Wall Street: The 1% Are Paying More in Taxes

The frequent accusation made by the Occupy Wall Street movement is that the wealthy — i.e., “the 1%” — have rigged government in their favor.

But tax data suggests otherwise. Consider two charts based on data from the Tax Policy Center. The first shows that, over the past 30 years, the top 20% of U.S. households in terms of income have paid a steadily larger share of the taxes collected by the federal government. (Federal taxes include income tax, corporate tax, FICA/social insurance tax (part of payroll taxes), and excise tax.) All other quintiles have paid a steadily smaller share.

The second chart again shows the share paid by the top 20%, but also by the top 10%, the top 5%, the top 1%, and the bottom 80%. Notice, the top 10% are paying almost twice the share of federal taxes as the bottom 80%. The top 5% are also paying a significantly larger share of federal taxes than the bottom 80%. And the top 1% — who have allegedly rigged things in their favor — are paying almost as much as the bottom 80%.

Billionaire investor Warren Buffett claims that, “Through the tax code, there has been class warfare waged, and my class has won”. What did they win? The right to pay an even larger share of federal taxes? Because that’s what the data — not anecdotes about an investor here or there paying more than their secretary — illustrates.

As I’ve said before, OWS and their supporters can’t be angry for no reason, they have to have facts and data to back up their allegations. And the data on taxes and spending doesn’t seem to support what they say.


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