U.S. RICH YIELD A TAX WINDFALL
May 26, 2006
As America's rich get richer, the taxes they pay on their increasing income is yielding a windfall for the U.S. Treasury, says the Congressional Budget Office (CBO).
A recent surge in tax receipts due to the 2001 and 2003 tax cuts is coming from the rich, says CBO. According to estimates for the current fiscal year:
- The top 10 percent of income earners (with incomes over $251,400) will pay 56.2 percent of all federal taxes this year, up from 52.2 percent in 2000.
- That includes income and payroll taxes, Social Security and the like.
- The growing tax take from the rich is commensurate with the growth in their share of the nation's income; in 2006, the top 10 percent is projected to receive 44.7 percent of all household cash income, up from 40.6 percent in 2000.
Source: Deborah Solomon, "Their Income Up, U.S. Rich Yield A Tax Windfall," Wall Street Journal, May 20-21, 2006; based upon: Mark Booth et al., "Monthly Budget Review," Congressional Budget Office Analysis, May 4, 2006.
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