Professor and chairman of the economics department at Harvard University, Greg Mankiw, took the latest CBO report and ran some numbers for 2009, the most recent year for which we have records. He wanted to look at not only the amount of taxes someone paid, but also how much money individuals got BACK from the government in the form of refundable tax credits, welfare payments, entitlements and other government goodies.
So here are his calculations for the taxes each income level pays. What this economist measured here is the amount of taxes the members of these income groups paid TO the government minus the amount of money these people got back in the form of various government payments:
Bottom quintile: -301 percent
Second quintile: -42 percent
Middle quintile: -5 percent
Fourth quintile: 10 percent
Highest quintile: 22 percent
Top one percent: 28 percent
As Mankiw explains the bottom quintile of Americans are essentially receiving $3 in UNEARNED income from the taxpayers for every dollar they earn. He also points out something rather critical, and this is the fact that the middle quintile of taxpayers is in the negative, which means that they are net tax consumers. That is almost a 20 point swing since 1979, when middle income earners were tax contributors.
This explains how 50% of Americans pay no income taxes at all … and instead absorb tax money paid by others.
As Ben Franklin has said:
Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.
When the people find that they can vote themselves money, that will herald the end of the republic.
These FACTS do not bode well with the proggy LIE, in their class warfare, that the “rich are not paying their fair share”!