From link:
A new study finding an "unfair," rich-poor balance in state and local taxes has been getting big traction on the Web this week.
The
study, from the Institute on Taxation and Economic Policy, found that "virtually every state's tax system is fundamentally unfair, taking a much greater share of income from low- and middle-income families than from wealthy families." It added that state and local tax systems are "indirectly contributing to growing income inequality by taxing low- and middle-income households at significantly higher rates than wealthy taxpayers."
In other words, it said the tax systems are "upside down," with the poor paying more and the rich paying less. Overall, the poorest 20 percent of Americans paid an average of 10.9 percent of their income in state and local taxes and the middle 20 percent of Americans paid 9.4 percent. The top 1 percent, meanwhile, pay only 5.4 percent of their income to state and local taxes.
In other words, it said the tax systems are "upside down," with the poor paying more and the rich paying less.
Overall, the poorest 20 percent of Americans paid an average of 10.9 percent of their income in state and local taxes and the middle 20 percent of Americans paid 9.4 percent. The top 1 percent, meanwhile, pay only 5.4 percent of their income to state and local taxes.
Yet while the report is sure to spur calls for higher taxes on the rich, its findings paint a misleading picture of the broader taxes paid by Americans, rich and poor included.
First off, Americans pay federal, state and local taxes. Federal taxes account for two-thirds of the taxes that Americans pay. So while it's true that state and local taxes by themselves are regressive, Americans pay far more in federal taxes, which are far more progressive with the rich paying a higher share—both of their own incomes and of total taxes......
According to the nonpartisan Tax Policy Center, the top 1 percent of Americans paid 33.4 percent of their expanded cash income (a broad measure of pretax income) in federal taxes. Middle class Americans—or those in the middle 20 percent—pay 13.7 percent of their income to federal taxes,
while the poorest pay 3.1 percent.
3.1% + 10.9% = 14%
5.4% + 33.4% = 38.8%
Your weak math is worse than I thought.