Well, if you are a Star Trek fan you know that indeed Data does talk a lot. But this blog entry isn’t about Star Trek’s Data.
This is about the taxes American’s pay. Take a few minutes and look at the table below. I’ve highlighted some parts of the data that I think are important and I’ll elaborate on these parts in the points below.
Go ahead, take a gander for a while at the table.
Did you cheat on me? Really, look at the table carefully.
Ok, so what does this data tell you?
- that ONE (1) percent of the tax paying Americans pay 39.89 percent of all income taxes collected.
- that twenty five (25) percent of the tax paying Americans pay 86.27 percent of all income taxes collected.
- that fifty (50) percent of the tax paying Americans pay 2.99 percent of all income taxes collected.
What does this mean to you?
For me the data says that a small minority of tax payers are paying the bill for the rest of their fellow citizens.
The data also confirms that politicians abuse the facts when talking about tax policy. You hear some politicians say “this tax break is only for the ‘rich!’”
Well, when the “rich” are paying most of the taxes, a tax cut will indeed benefit them more than for people who barely pay any taxes.
I didn’t mean to get off on a tangent on the interpretation of this data. What I really wanted to say today is that we need to be better gatherers and analyzers of data so that we can be better informed so that we can make better decisions.
Data Source: IRS, via this great web site that has a crap load of tax data – The Tax Foundation.Org