OMB: Top 20% pay 95% of taxes, middle class 'single digits'

[mystery-ak]

OMB: Top 20% pay 95% of taxes, middle class 'single digits'
by Paul Bedard | Oct 27, 2017, 7:35 AM

Any tax cut for middle income earners will also provide a benefit for those further up the income scale, including the top 20 percent who pay 95 percent of all income taxes, according to the director of the Office of Management and Budget.

In explaining the complicated tax system the administration and congressional Republicans are trying to simplify, Mick Mulvaney played the role of professor at Georgetown University Wednesday night and dished the eye-popping numbers and impact of a middle class tax cut.

It came in a discussion before students of the school's Institute of Politics and Public Service at the McCourt School of Public Policy. The discussion was directed by Cathy Koch, a tax expert and former Senate aide.

more
http://www.washingtonexaminer.com/omb-top-20-pay-95-of-taxes-middle-class-single-digits/article/2638746

[bilo]

We have a progressive tax system, which means that if you make $1 million and I make $50,000, we both pay the exact same rate on the first, let's say, $20,000. And then, from the next $20,000 up to my $50,000, and her next $20,000 to her next $50,000, we pay the same, I think it's 12 percent of 15 percent, I can't remember where the brackets are right now. And then she goes on to pay her higher rate on the stuff that she makes and I stop.

I love the explanation of the progressive taxation system. IOW, as your income goes up and you move into a higher bracket it is only the monies in the higher bracket that are taxed at the higher rate.

The problem we face though is because the top 20% pay 95% of the income taxes what motivation is there for the bottom 80% to demand spending restrain. Govt keeps growing, entitlements keep growing and the demand for the rich to pay their "fair" share keeps growing. No one wants to admit they are the grasshopper and not the ant. A flat tax across the board, or a national sales tax with no income tax, would solve this but we keep moving in the opposite direction.