People say that the rich pay no taxes. Our federal government took in $2.2 trillion in income tax revenues for 2015.
So let’s do a couple quick calculations. According to the United States Census Bureau there are about 125.8 million households in the U.S. 44.8 percent earn less than $50,000 per year. If they do not qualify for the Earned Income Tax Credit and were taxed on their entire household income they would owe $7,500 for that year. There are approximately 56.4 million households in that income bracket and collectively they would owe $423 billion.
According to the Census Bureau about 21 million households earn between $50,000 and $75,000 per year. If they all earned $75,000 and were taxed on the entire amount, each would owe about $18,750 for that year. Collectively they would owe $394 billion.
According to the Census Bureau about 15.2 million households earn between $75,000 and $100,000 per year. If they all earned $100,000 and were taxed on the entire amount they would owe $25,000 for that year. Collectively they would owe $380 billion.
Together these 75 percent of the taxpayers would owe $1.197 trillion. The corporate tax accounts for about 11 percent of federal income tax revenues recently or about $242 billion. That leaves $761 billion to be collected from the 25 percent remaining who pay no taxes. What part of that 44.8 percent do qualify for the Earned Income Tax Credit and pay nothing in federal income tax? Who pays that difference? The government got it from somebody.
Brad Sewell, Collinsville