The Rich and Their Taxes

There is a lot of talk these days about who is rich and whether or not they are paying their fair share of taxes here in the USA.

This is my business blog, so personal opinions on politics are pretty much not offered. But here are some facts to consider:

Now, the top 5% of income earners pay 44% of the income taxes.
Now, they earn 32% of the income.

Under president Reagan, they paid 32% of the income taxes.
Under Reagan, they earned 23% of the income.

So, since Reagan, the top 5% have seen a 39% increase in their share of the income we earn.
And, since Reagan, they have seen a 38% increase in their share of the income taxes we pay.

What to think of the concentration of income is the subject of serious debate. And what to think of "progressive" or "graduated" tax systems like ours is an equally serious subject.

But the tax burden has evidently kept up with the income distribution.

(My information comes from an article written by MarketWatch's Brett Arends: http://www.marketwatch.com/story/7-myths-and-realities-about-taxes-2010-09-28)