Preliminary data for tax year 2005 indicate that taxpayers filed 134.5 million U.S. individual income tax returns, an increase of 1.6 percent from the preliminary estimate of 132.4 million returns filed for tax year 2004. Adjusted gross income (AGI) increased by 8.9 percent from the previous year to $7.4 trillion for 2005 and taxable income increased 9.5 percent to $5.1 trillion.Now, that is one very mighty economy indeed.
For tax year 2004, taxpayers filed 132.2 million returns, of which 89.1 million (or 67.4 percent) were classified as taxable returns.One-third of taxpayers actually pay no tax at all!
...Taxpayers with an AGI of at least $328,049, the top 1 percent of taxpayers, accounted for 19 percent of total AGI, representing an increase in income share of 2.2 percentage points from the previous year. These taxpayers accounted for 36.9 percent of the total income tax reported, an increase from 34.3 percent in 2003.So much for the Left's tax-the-rich answer to everything. The rich are already getting it in the neck! The top 1% are paying 36.9% of all taxes while representing only 19% of all income...in other words, the top 1% is already paying for the one-third that doesn't pay any tax. Isn't that what the Left wants anyway?
Debate has gone back and forth over the last few years in the US about introducing the Fair Tax, a national consumption tax similar to Australia's GST. If that ever gets up then the US economy will embark on another sustained surge. It's amazing that the economy can perform so strongly without it.