Everyone has an opinion about the income tax system in the US, and usually that opinion is not a good one. We hear many times about folks with higher incomes paying little in federal taxes. There is some truth to that, but usually what is heard on the news is that they are paying a low percentage of taxes.
For example, Mitt Romney’s 2010 tax return showed over $3 million in taxes paid on $21 million of income, a total of 13.9% of his income. Our tax rate is usually much higher than 13.9%, but $3 million is still a lot of taxes to pay, right?
Here are some 2012 stats on the higher income tax payers…
The top 1% of earners made $434,682 or more and paid 38.1% of all income taxes paid in the US.
The top 5% of earners made $175,817 or more and paid 58.9% of all income taxes paid in the US.
The top 10% of earners made $125,195 or more and paid 70.2% of all income taxes paid in the US.
The bottom 50% of tax return filers paid 2.8% of the total taxes paid.