CBO report of Federal Tax Rates
The CBO is out with a new report about Federal Tax Rates. The report states that:
"The overall average federal tax rates of 18.0 percent in 2008 and 17.4 percent in 2009 were the lowest in the 1979–2009 period and were well below the previous low of 19.4 percent in 2003 and the average of 21.0 percent over that period."
The report also notes that tax liability increases significantly with income.
"In 2009, the shares of federal taxes paid by households in certain income quintiles were:Lowest quintile: 0.3 percent Middle quintile: 9.4 percent Highest quintile: 67.9 percent" We find ourselves in an interesting situation - one that doesn't get much honest discussion. That is, overall average Federal Tax Rates have been falling for 30 years. When is the last time you heard someone mention this? Not often. Instead, the chatter is meant to convince us that we are paying more Federal Taxes than ever - something that is patently false as you can see. But the portion of total Federal Taxes paid continues to be the major responsibility of upper income earners. Any real "reform" has to begin by honestly confronting the facts.