The Congressional Budget Office released its annual study of the distribution of income and federal taxes. It tells us what most of us knew; the rich pay a lot more federal taxes than the middle class and the poor.
According to CBO, the average tax rate of the top 1 percent was 29 percent in 2011. The CBO report shows the middle class paid an effective rate of 11.2 percent for the same year. The rich paid almost three times the effective rate of the middle class. Based on tax increases that began in 2013, CBO predicts the top 1 percent will pay 33 percent effective rate in federal taxes. The top 1 percent, earned almost 15 percent of income and paid 24 percent of federal taxes. The top 20 percent earned 51.9 percent of income and paid 69 percent of taxes. All other income groups paid a smaller tax burden than they earned in income. Middle class income was at 14 percent and paid 9 percent of taxes. The bottom 20 percent earned 5.3 percent and paid less than 1 percent of taxes.
Perhaps it’s time for people to realize the Federal government needs to spend less, giving those it supposedly services, more value for their dollar. Current federal expenditures are running at $1.57 spent for every $1.00 received.
I’m sure there will be those who will insist the wealthy don’t pay enough.