John said:

>That is incorrect. In 2007, the top 1% paid 40% of the federal income
>taxes, the top 5% paid 61%, and the top 10% paid 71% of taxes. If the
>middle class is 25%-75%, then the upper class, top 25%, paid a
>whopping 87% of federal income taxes.

>http://www.taxfoundation.org/news/show/250.html

I saw that, but since it was a polemic site, I went to the source they
quoted.  They contradict that source, by a wide margin.  At 

http://www.irs.gov/taxstats/indtaxstats/article/0,,id=96981,00.html

we have the IRS figures.  The top 1% of all returns paid 20% of the total
income tax on 13% of the total reported income. But, of course, they paid
only a small fraction of other federal taxes (biggest one is FICA where
they are capped at about 16,000, capital gains don't count and are taxed at
a special low rate (which mattered in '07), offshore income doesn't count,
etc.  And, the total number of returns includes all the returns by kids who
make $600/year and get $20.00 back....the income on about a third of the
returns is so small taxes aren't owed. If you look at the top 1% of folks
who did pay income tax, the fractions become smaller.

But, what is critical is the site you quoted contradicted their stated
source.  This sorta stuff happens all the time; that is why I try to get to
the real source.  I'm not calling _you_ a liar, BTW.  There are two reasons
for this.  I don't think you'd lie about this....so I guess I do make
personal judgements after all, huh? :-)  Second, I wouldn't call someone
out as a liar unless I had proof.  But, I will say that you are someone who
believed liars.

Now, if my arithmatic is wrong, then I gave the source for you to check me.
But, there was something fishy about that number.


Dan M. 

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