Let's Get Real On Tax Reform

 

$1,000,000 or more

Information on the group you are in is listed below in Row 1.  Information on two other groups are also listed for comparison.  Row 2 has the stats on the 239 thousand people who have incomes of $1,000,000 or more.  Row 3 has the data on the 129 Million with incomes between $0 and $999,999.

Mean 1976 1976-2000
2000

Percent

Adjusted Percent of 2000 After Tax 1976-2000 Percent of
Row Income of all Gross Tax Rate After Tax Income After Tax After Tax

#

Range Taxpayers Income Decrease Income (in 2000 $s) Income Gain Income Gain

1

$1,000,000 or more

0.19%

$3,410,368

43.7%

$2,466,127

$356,261

$2,109,866

592%

2

$1,000,000 or more

0.19%

$3,410,368

43.7%

$2,466,127

$356,261

$2,109,866

592%

3

No AGI to $999,999

99.81%

$42,963

-6.8%

$37,121

$31,770

$5,352

17%

Row 1 is the report card for the 239 thousand plus filers with adjusted gross incomes of $1 million or more.  Your TAX RATE DECREASED by 43.7%.  Your income surpassed inflation ($1 in 1976 bought as much as $3 in 2000).  Your average AFTER TAX INCOME INCREASED by $2,109,866, a 592% growth. Most of the tax cut has gone to your group. Those within your group with an income of $5,000,000 plus had their taxes cut  by 73.3%, their after tax income increased by 1200%.  Over 71% of the Americans had less than $0 after tax  income gain.  Giving the bulk of the tax cuts to a tiny fraction of the population amounts to class warfare.

The productivity gains of the Nation as a whole have led to an average increase in after tax income gain of  29%.  When we remove those with million dollar plus paychecks, the after tax income gain for everyone else (Row 3) drops to 17%.  How did nearly half of the growth of the economy end up in the hands of the top 1/5 of 1%?  Row 2 shows that the richest few saw their taxes drop by nearly 44%.  The various tax breaks have allowed these 239,000 people to SAVE $127 Billion in taxes in 1 year, while many Americans paid more than they had under the 1976 rates. 

In 1976, the richest few controlled 3% of the total income.  After 20 years of sweetheart tax breaks their share of the national income has increased to 13%.  That amounts to $817 Billion of the $6,365 Billion year 2000 national paycheck.

Last year's tax cut and the current proposed legislation will give the super rich an even greater advantage.  Isn't it time to demand Congress stop these giant gifts and treat the rest of us fairly?

 

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Copyright 2003 Stephen Rodnesky                                                                  Last modified: February 07, 2003