The rich need to pay their fair share

[TexasHusker]

We hear this statement all of the time. "The rich need to pay their fair share." And I agree with that. But the question becomes, what is their fair share, and perhaps more importantly, who is rich?

According to the Tax Foundation, 45 percent of workers in the U.S. don't pay a single dime of income tax. The other 55 percent are funding the Treasury. Of that 55 percent, [COLOR=#e74c3c][B]the top 8 percent are funding 60 percent of the Treasury. [/B][/COLOR]So are the rich paying their fair share?

Here are a couple of interesting charts for discussion.

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[QuarterMillionMan]

I just wrote a $32,000 check to the IRS for capital gains on the sale of a property in August of 2020. Curious who the 45% who pay no income taxes are.

[jenn_jenn]

[QUOTE=QuarterMillionMan;n724214]I just wrote a $32,000 check to the IRS for capital gains on the sale of a property in August of 2020. Curious who the 45% who pay no income taxes are. [/QUOTE]

This link has a little more detail. It explains that some have no income to tax and the others receive more federal assistance than taxes paid.

My grandmother falls into this category. She has no income and collects SS. It’s actually quite sad why she’s in this position but that’s another story. My parents take care of all of her expenses.

[corn18]

[james.hendrickson]

Moderator note: moved this to 'everything else financial', is a discussion of fiscal policy, not personal finance or saving.

[TexasHusker]

[QUOTE=james.hendrickson;n724221]Moderator note: moved this to 'everything else financial', is a discussion of fiscal policy, not personal finance or saving. [/QUOTE]

enjoyed the thread while it lasted!

[Yoloma]

Looks like they do according to this chart. But not quite sure rich people pay that much in reality.

[srblanco7]

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I'll leave this here. Includes a broader view of taxes paid (i.e., fed income taxes, medicare, fica) with percentage of income earned. Casts a bit of a wider net.

Recent articles have been comparing taxes paid (or perhaps income taxes paid) relative to net worth for the top 1% and/or top 0.1%, which is an entirely different can of worms.

[LivingAlmostLarge]

the top 0.1% live on investment income and that's taxed at a lower rate than earned income by a lot. Earned income is like 37% but LTCG is 15% or 23.9%.

[james.hendrickson]

I just want to say this...business owners have a far more advantageous tax situation than wage earners.

My federal tax liability in 2020 was $0.

[bjl584]

[QUOTE=james.hendrickson;n727661]I just want to say this...business owners have a far more advantageous tax situation than wage earners.

My federal tax liability in 2020 was $0.

[/QUOTE]

W2 Earners are the scapegoats of the tax code

Own a business, own real estate, own agricultural land, or make passive income, and you'll reap the benefits

[james.hendrickson]

[QUOTE=bjl584;n727662]

W2 Earners are the scapegoats of the tax code

Own a business, own real estate, own agricultural land, or make passive income, and you'll reap the benefits
[/QUOTE]

For sure BJ, at the Federal level the tax code rewards business and capital ownership. Here in Oregon the tax code is much less advantageous to business - you have to pay, there are fewer loopholes.

[LivingAlmostLarge]

Oh w2 is terrible way to make money. It's how must of us do it but it sucks.