Wall Street Journal Echoes Tax Foundation Analysis of New IRS Income Data
July 21, 2008
Today’s Wall Street Journal carries an editorial that echoes a recent Tax Foundation Fiscal Fact. From the editorial, “Their Fair Share”:
Washington is teeing up “the rich” for a big tax hike next year, as a way to make them “pay their fair share.” Well, the latest IRS data have arrived on who paid what share of income taxes in 2006, and it’s going to be hard for the rich to pay any more than they already do.
. . .
Aha, we are told: The rich paid more taxes because they made a greater share of the money. That is true. The top 1% earned 22% of all reported income. But they also paid a share of taxes not far from double their share of income. In other words, the tax code is already steeply progressive.
Tax Foundation Fiscal Fact No. 135, “Summary of Latest Federal Individual Income Tax Data,” explains that upper-income taxpayers pay federal income taxes at a rate disproportionate to their share of the nation’s income. The Fiscal Fact includes detailed charts of the latest IRS data and can be found here.